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Bangladesh has allowed income tax exemption for software development business and Information Technology Enabled Service sector from 1st July 2005 to 30th June 2024 for both resident and non-resident persons. This tax exemption is allowed for the said sector to accelerate international communication for economic growth of the country and to cope up with the challenge of globalization. As a result the country has made tremendous progress in the field of communication technology. Side by side a large number of non-resident are investing in the tax exempted software sector of the economy. The ordinance also provides section 44(5) with a condition to submit income tax return for availing tax exemption by the person’s engaged in software development and IT Enabled Service.
The tax exemption for software development and Information Technology Enabled Service (ITES) has attracted the people both resident and non-resident in making investment to develop the sector. The objective of the government has been translated into reality and by now software development and ITES has reached the height of world class.
The government extended all focus to develop software development education as an important sector of the economy.
All academic institutions in the country are providing higher education on software technology like International Communication Technology (ICT), Computer Science and Technology (CST) and many other courses in national curriculum.
From secondary level to highest level of education the government introduced specific subjects for communication technology. Every year hundreds of students are passing out as graduates who have been engaged in services at national and international levels.
The government programme named ‘Digital Bangladesh’ has achieved tremendous success at home and gained appreciation from the developed world. The success story of the country attracted many countries and organizations and development partners to have service from the software sector of Bangladesh.
Bangladesh has made an enviable progress in software sector and local entrepreneurs and foreigners are working shoulder to shoulder in different field of the economy. The govt. has provide tax exemption and other infrastructure facility for development of partnership with the foreign investors in this sector.
New investment in Echo park facilities have been made fully tax free and hassle free from foreign development investment (FDI).
Bangladesh Bank, the central bank of the country and Bangladesh Industrial Development Authority (BIDA) have been working exclusively for the foreign investment in Bangladesh.
The government has made necessary change in rules and regulations to facilitate development of the software sector of the country. Especially for the foreigners the government allowed the tax holiday, tax exemption, tax rebate and other facilities at all levels of government machineries.
Bangladesh is presently on the road to a developed country as a mission and a vision. Software development and ITES has been accelerating the path of progress of the economy trading towards achieving the vision to include Bangladesh in the community of developed countries of the world.
Reference/ Citation
Income Tax Ordinance, 1984 (Bangladesh)
