Google, Facebook to face 15% tax on digital ad income

Global tech giants such as Google and Facebook will face 15 per cent withholding tax deduction from payments made by local companies against advertisements given in the digital sphere, said the National Board of Revenue (NBR).

And in case of payments made to foreign television channel and radio stations for advertisements of their products broadcasted in foreign television channels and radios, 20 per cent withholding tax should be deducted by banks, said the tax authority in a clarification to Bangladesh Bank.

The NBR issued the clarification in response to a query by the central bank in March this year regarding deduction of tax during payment to non-resident firms or multinational tech companies that do not have office in Bangladesh.

The NBR said withholding tax should be deducted at 15 per cent on payment to tech firms for advertisement in the internet, and 20 per cent of tax to be cut during payment to foreign TV channels and radios for broadcasting ads until June 30 this year.

Following the clarification, the NBR asked banks to deduct the taxes during remitting money to non-resident companies.

"We expect to get a good amount of tax after the clarification," said a senior official of the NBR.