Wahab's Wealth Watch: NBR Introduces “Hard Copy Return Entry” Module to Integrate Past VAT Returns into e-VAT System

A. Wahab & Co. Staff
1 day ago
6 min read

Tax/VAT Updates

The National Board of Revenue (NBR) has introduced a new “Hard Copy Return Entry” sub-module in the Bangladesh e-VAT System to ensure that previously submitted paper VAT returns are properly recorded online. This initiative allows taxpayers to self-enter past hard copy VAT returns by following procedures set out in an NBR circular, reducing reliance on manual data entry by VAT offices.

Previously, VAT offices entered paper returns through Central Processing Centres, a time-consuming process that often led to delays, data entry errors, and the automatic imposition of interest and penalties, preventing taxpayers from filing returns online. Under the new system, taxpayers who submitted hard-copy VAT returns within the statutory deadline can enter those returns into the e-VAT System without penalty or interest.

Taxpayers will receive notifications via email and mobile with access to the module. All past hard-copy VAT returns may be entered up to 31 March 2026, after which taxpayers will be able to continue uninterrupted online VAT return filing.

User Manual regarding submission of VAT Return Hardcopy

The National Board of Revenue (NBR) has issued a user manual outlining the procedure for entering previously submitted hard-copy VAT returns into the Bangladesh e-VAT System.

Under the e-VAT framework, VAT returns submitted in paper form were previously entered into the system by the Central Processing Centre (CPC) of the respective VAT Commissionerate. This manual process often led to delays, data entry errors, and difficulties assigning responsibility.

To address this, NBR has introduced a new feature in the e-VAT System titled “Hard Copy Return Submission Confirmation / Hard Copy Return Entry.” Using this feature, taxpayers can themselves input details of VAT returns that were already submitted in hard copy within the legal time limit.

The manual provides step-by-step guidance on:

Accessing the e-VAT System
Navigating to Return Management → Return Processing
Entering taxpayer BIN information
Selecting the relevant tax period
Inputting Hard Copy Received Date and reference details
Submitting the information for confirmation

Once the hard-copy return information is verified and approved by the VAT office, the taxpayer may submit subsequent VAT returns online without system restrictions. The system also sends confirmation notifications to taxpayers.

Integration of Income Tax e-Return System with iBAS++ for Automated Credit Processing

The National Board of Revenue (NBR) has introduced an automated e-Return credit system by integrating the Income Tax e-Return System with iBAS++, enabling automatic verification and adjustment of income tax paid at the assessment stage. This reduces the need for physical verification and speeds up return processing. Taxpayers filing online can now view bill-wise tax payment details, with the paid tax automatically applied to the total liability.

Since the launch of online filing for the 2025–26 assessment year, over 46 lakh taxpayers have registered, and around 30 lakh have submitted returns, including 8,000 expatriate Bangladeshis. No documents are required for online filing, and taxpayers are encouraged to submit their e-Returns by 31 January 2026 via www.etaxnbr.gov.bd

Summary

The NBR has introduced an automated e-Return credit system for income tax paid at the assessment stage.
The Income Tax e-Return System is now integrated with iBAS++, enabling automatic verification and faster processing.
Tax paid during assessment is automatically adjusted against the total tax liability shown in the e-Return.
For the 2025–26 assessment year, over 46 lakh registrations and 30 lakh online return submissions have already been completed.
Expatriate Bangladeshis are also using the system; around 8,000 have filed returns online.
No documents need to be uploaded for online filing.

Section 266 of the Income Tax Act, 2023

Under Section 266 of the Income Tax Act, 2023, penalties may be imposed if a taxpayer fails to file income tax returns or submit required information without reasonable cause. The key points are summarized below:

1. Failure to File Income Tax Return

A penalty of 10% of the tax on the last assessed income applies, with a minimum of Tk 1,000.
If the failure continues, an additional Tk 50 per day may be charged.
The total penalty is capped as follows:
- Up to Tk 5,000 for individuals not previously assessed to tax.
- Up to 50% of the last assessed tax or Tk 1,000 (whichever is higher) for individuals previously assessed.

2. Failure to Submit Required Returns or Information

Failure to submit returns or information under Section 177 may result in:
- A penalty of 10% of the last assessed tax or Tk 5,000 (whichever is higher), plus
- Tk 1,000 per month for each month the failure continues.
Failure to submit required certificates under Section 145 may attract:
- A penalty of up to Tk 5,000, plus
- Tk 1,000 per month for continuing non-compliance.
Failure to provide information under Section 200 may result in:
- A penalty of up to Tk 50,000, plus
- Tk 500 per day until compliance is completed.

Key Takeaway

Timely filing of tax returns and submission of required information is essential to avoid penalties and ongoing daily or monthly charges. Where delays are unavoidable, maintaining proper justification and documentation is important, as penalties apply only in cases without reasonable cause.

Other Regulatory

BIDA Introduces Outward Remittance Repatriation Approval Facility

The Bangladesh Investment Development Authority (BIDA) has introduced a fully online outward remittance repatriation approval service through its One Stop Service (OSS) portal. This digital platform lets investors submit applications, track progress, pay fees, and receive approvals for remittances such as royalties, technical know-how, technical assistance, and franchise fees, all within 7 working days — a process previously conducted offline.

BIDA’s executive chairman highlighted that the move closes a major gap and brings efficiency, transparency, and environmental benefits to a key investment process. The launch also ties into the broader BanglaBiz digital platform, developed with JICA, which aims to unify OSS portals and accelerate investor services. With this addition, BIDA’s OSS now offers 142 investor services to support ease of doing business in Bangladesh.

RJSC Circular Mandating Accurate Digital Filings and Undertakings

The circular, issued by the Office of the Registrar of Joint Stock Companies and Firms (RJSC), outlines updated compliance requirements and procedural instructions for companies and firms registered in Bangladesh.

Key Points:

Companies must ensure the timely submission of statutory returns, documents, and information as required under prevailing laws and regulations.
Any inconsistency, false declaration, or failure to submit required documents may result in regulatory action under the Companies Act.
The Registrar emphasises greater accountability, transparency, and accuracy in corporate filings.
Certain filings now require a formal undertaking (declaration) confirming the correctness and authenticity of submitted information.
Digital systems and online platforms of RJSC (roc.gov.bd) are to be used for submissions, reflecting the authority’s push toward automation and paperless compliance.
Officers, directors, or authorised representatives will be held personally responsible for incorrect or misleading information.
The circular also reiterates penalties and consequences for non-compliance or delayed compliance

The RJSC circular reinforces stricter compliance and transparency standards for registered companies and firms, mandating accurate, timely digital submission of statutory documents along with formal undertakings to ensure accountability. The move aims to strengthen corporate governance, reduce misinformation in filings, and modernise regulatory oversight by enhancing the use of online systems, while warning of penalties for false declarations or non-compliance.

RJSC circular

Subject: Submission of documents related to registration and post-registration returns of Societies, Companies, Foundations, Trusts, and Firms.

This is an official RJSC circular issued in January 2026.

It provides mandatory document requirements for:
- Registration
- Post-registration returns
of companies, societies, foundations, trusts, and firms.

Key points:

Applicants must submit complete personal information, NID, photos, and contact details.
Company objectives and capital must comply with the Companies Act 1994.
Bank channel investment proof is mandatory.
Rental agreement required if office premises are rented.
Trusts must submit a registered trust deed.
An Undertaking confirming lawful operations is compulsory.
Registered entities must:
- Hold AGMs annually
- File annual returns on time
- Follow legal procedures for MOA/AOA changes
- Submit proper documents for share transfer and director changes
The circular is effective immediately and applies to all RJSC-registered entities.

RJSC Circular

Subject: Collection of government fees and service charges related to registration and filing of returns of companies and firms through online payment methods (fees, charges, and stamp duties).

RJSC has made online payment mandatory for all company and firm registrations and filings.
Government fees, filing charges, and stamp duties must be paid digitally.
Cash or manual payments are no longer allowed.
Applications without online payment proof will not be accepted.
Details and payment instructions are available on the RJSC website.
The directive is effective immediately.

Corporate

Leaders Label of China Plans $20 Million Investment in BSEZ

Leaders Label Material (Bangladesh) Co. Ltd., a subsidiary of China’s Huzhou Lingxian Silk Ribbon Co. Ltd., has signed a land lease agreement with the Bangladesh Special Economic Zone (BSEZ) to establish its first production facility in the country. The company, known globally for RFID solutions, tags, and labels for apparel and retail, will build its factory on one hectare of land, with construction starting in Q2 2026.

The project involves an initial investment of $15–20 million and is expected to bring technology transfer, job creation, and global integration, signaling long-term investor confidence in the BSEZ. The zone, also called the Japanese Economic Zone, is a G2G initiative managed by BEZA aimed at diversifying industrial production, attracting investment, and promoting sustainable economic growth.

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