National Board of Revenue has extended the tenure of tax benefit for asset management companies on their income in the form of mutual fund management fees.
Income tax wing of NBR on November 13 extended the benefit of 15 per cent reduced tax rate for five years as the current tenure of the benefit is set to expire on December 5.
NBR in 2013 imposed the tax at reduced rate on fees which the asset management companies received for management of mutual funds for five years.
Now, the companies will enjoy the benefit up to 2023 following the extension.
NBR officials said that they extended the benefit following application from the sector.
Generally, asset management companies pay tax at the rate of 37.5 per cent on their other incomes.
AIMS of Bangladesh Ltd, an asset management company, managing director Yawer Sayeed said that the asset managers would be benefited from the extension.
He said that there was no tax on the fees before 2013.
There is no tax on income from mutual funds in the country.
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