New era | Budget proposes an option to legalize undeclared wealth with 15% tax on property

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Taxpayers in Bangladesh, including companies and firms, can now legalize their undeclared wealth by paying a 15 percent tax on real estate, without having to ask questions about the sources of their income.

The new provision, which applies to the 2024-2025 tax year, allows individuals and entities to declare previously undisclosed assets without audit. In particular, no authority can question if a taxpayer pays a 15 percent tax on cash, bank deposits, financial securities or other forms of wealth.

To whiten their wealth, taxpayers must also pay the specific tax on properties such as land, buildings, flats or commercial spaces.

Finance Minister Abul Hassan Mahmood Ali stated that the introduction of a data verification system has created legal complications regarding the disclosure of undisclosed income and assets of various companies.

He noted that “unavoidable circumstances,” including taxpayer ignorance in filing returns, could lead to “errors” in asset disclosure.