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Freelance Remittance Tax? What happens

Recently, on September 27, 2023, Bangladesh Bank issued a notice about a new tax related to freelance income. They posted this notice on their official website.

This is the exact circular from the Bangladesh Bank website, Download the original circular.

Screenshot from bangladesh bank official website, Screenshot about Remittance Tax for freelancer or AdSense publisher

In the notice, Bangladesh Bank mentioned that people who receive money from abroad for freelance work or revenue sharing must deduct a certain amount of tax from that money before using it. This tax is in accordance with Section 124 of the Income Tax Act-2023.

Impact of freelance income tax

What will be if this circular really goes ahead, This circular can be bad news for people who are related to Freelancing and content creators. Bangladesh bank said to reduce 10% the money of inward remittance.

Will Google AdSense payment reduced?

Yes! Google AdSense payment will be reduced by 10% during bank transactions when it is deposited to any Bangladeshi bank. But Zunaid Ahmed Palak said It was a routine notification of Bangladesh Bank. Source: Prtothom Alo News.

Will Freelancer’s Money reduced?

Freelancers’ money is also in the category of inward remittance, but As Bangladeshi IT minister Zunayed Ahmed Palak said, Freelancer’s money is safe from these rules.

What is Inward Remittance?

Inward remittance refers to the transfer of funds from a foreign country into the home nation of the recipient. Typically, it entails individuals, businesses, or organizations sending money to a foreign person or entity. Remittances can occur for a variety of purposes, including:

Personal Transfers

This includes money sent by family members working abroad to support their loved ones back home, like sending money from a foreign worker to their family in their home country.

Business Transactions: Companies engaged in international trade frequently receive inward remittances from international clients or partners.

Foreign investors may transmit funds into a country for investment purposes, including the purchase of stocks, bonds, or real estate.

Payments for Services Freelancers, consultants, and service providers can receive payments for their services from consumers in other countries, which are also considered inward remittances.

Foreign Aid and Donations: Non-profit organizations and governments can be supported by foreign aid.

Abdullah An Numan

Hello and welcome! I'm Abdullah An Numan, your trusted advisor for amplifying your earnings via the latest in technology and Artificial Intelligence. As a fervent writer, I'm committed to sharing insights that will elevate your IT life to unparalleled heights.

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