Circular No. 04 dated 8 May 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Clarification of ‘Digital Marketing’ and ‘Broadcast Advertising’ under Section 56 of the Income Tax Ordinance 1984”

When banks send remittances of income in favor of non-resident institutions, they have been deducting tax under Section 56 of the Income Tax Ordinance 1984 at different rates for different customers.

In an effort to standardize tax deductions for digital marketing (income from ads on the internet and social media) and broadcast advertising (income from ads on radio and television), the Bangladesh Bank issued this circular to banks specifying that tax at a rate of 15% should be deducted for digital marketing income remittances, while at a rate of 20% should be deducted for broadcast advertising income.