TRW & Co · Customs, VAT & Tax
Tax Lawyer in Chittagong (Chattogram): Income Tax Advice and Appeals
A tax lawyer in Chittagong handles income tax under the Income Tax Act 2023: notices, audits, assessments, appeals and the tax side of deals. For Chattogram importers, exporters, family businesses and probashis, the stakes are rising as the tax offices use more data and the NBR reform continues. Getting the record right early decides most disputes.
Key pointMost income tax disputes are decided by the record built at the audit stage, because the Taxes Appellate Tribunal is the last forum that finds facts and is reluctant to admit evidence that could have been produced earlier.
At a glance
Income Tax Act 2023
Replaced the Income Tax Ordinance 1984 in June 2023 and introduced the Withholder Identification Number for entities deducting tax at source.
Chattogram Taxes Zones
The NBR lists four Taxes Zones in Chattogram, divided into circles, plus a Taxes Appeal Zone that hears first appeals against assessments.
Second appeal to the Tribunal
Second appeals go to the Taxes Appellate Tribunal after a 3% pre-deposit under the Finance Act 2026; confirm the bench and hearing venue when filing.
Online filing is the norm
Most individual taxpayers must file through the NBR e-Return system, which also handles online applications for more time to file.
NBR reform pending
Plans to separate tax policy from tax administration remain under way in 2026; the NBR and its field offices continue to administer income tax meanwhile.
Swipe or scroll →
What a tax lawyer in Chittagong deals with
A tax lawyer in Chittagong advises individuals and businesses on income tax under the Income Tax Act 2023: registration, returns, withholding, audits, assessments, appeals and the tax side of transactions. In Chattogram the work is shaped by the port economy. Importers, exporters, shipping agents, garment groups, family businesses and probashi landlords all deal with the same income tax offices, and many of them carry exposure they have never mapped.
Income tax becomes a legal question rather than a bookkeeping one at predictable moments. A notice arrives asking for documents. An assessment adds income the taxpayer does not recognise. A buyer's due diligence finds unpaid withholding. A family sells land and has to deal with gain tax and source-of-funds questions. A foreign parent asks whether profits can be repatriated cleanly. Each of these needs someone who reads the statute, not just the form.
This page explains how the income tax system works for Chattogram taxpayers, where disputes are heard, how we approach them, and what decision-makers should check. VAT and customs have their own rules and offices, covered on our VAT page and our customs disputes page.
Who needs this most? Companies with related-party dealings abroad, groups with several entities sharing premises and staff, exporters relying on reduced rates or incentives, and individuals whose wealth statements have not kept pace with their assets. Each group tends to discover the problem only when a notice arrives, which is the most expensive time to learn it.
The legal framework: the Income Tax Act 2023 and who administers it
The Income Tax Act 2023 replaced the Income Tax Ordinance 1984 and took effect in June 2023. It restated the law in Bangla, reorganised the rules on returns, withholding, assessment and appeals, and introduced a Withholder Identification Number (WIN) for entities that deduct tax at source. Annual Finance Acts then adjust rates, thresholds and withholding rules, so the position for any year depends on the Act as amended by the Finance Act in force for that year.
The income year runs from 1 July to 30 June. Taxpayers register for a Taxpayer's Identification Number through the NBR e-TIN system, and most individual taxpayers must now file online through the e-Return portal. For the 2025–26 tax year the National Board of Revenue extended the individual filing deadline to 31 March 2026 and opened an online facility to apply for further time, subject to the tax commissioner's approval.
Who administers income tax
The National Board of Revenue (NBR) administers income tax, VAT and customs. A 2025 ordinance proposed dissolving the NBR into separate revenue policy and revenue management divisions under the Ministry of Finance. Implementation stalled after protests, and in June 2026 the Finance Minister confirmed that the government still intends to separate tax policy from administration. Until that change takes effect, the NBR and its field offices remain the bodies taxpayers deal with, and we track each step of the reform.
The Chattogram tax offices
Chattogram has its own income tax field structure. The NBR's list of income tax field offices includes four Taxes Zones in Chattogram, each headed by a Commissioner of Taxes and divided into circles run by Deputy Commissioners of Taxes, together with a Taxes Appeal Zone for first appeals. Large taxpayers may instead fall under the Large Taxpayers Unit. Which circle holds your file depends on the category of taxpayer and the allocation the NBR applies.
The Taxes Appellate Tribunal sits in benches. We have found no official source confirming a Chattogram bench, so the bench and hearing venue should be confirmed when the appeal is filed, and Chattogram taxpayers should expect that hearings may take place in Dhaka. Questions of law then go to the High Court Division of the Supreme Court by way of reference, and from there to the Appellate Division in appropriate cases.
A tax lawyer in Chittagong also works alongside the city's chartered accountants and income tax practitioners, many of whom are members of the Chittagong Taxes Bar Association. We often act with a client's existing accountants: they keep the books and prepare the return, and we take the legal points, the correspondence and the appeals.
Key decisions for a tax lawyer in Chittagong
Most income tax problems offer more than one route. Choosing the right one early saves money and keeps options open. The table compares the main routes once the Deputy Commissioner of Taxes has made an assessment or demand.
| Route | Who decides | Best suited to | Points to watch |
|---|---|---|---|
| Rectification or review | The Deputy Commissioner or Commissioner of Taxes | Arithmetical errors, credit not given for tax paid or deducted | Quick if the error is obvious; does not stop appeal time running |
| First appeal | Commissioner of Taxes (Appeals), Taxes Appeal Zone | Disputes over facts, disallowed expenses, estimated income | Strict time limit; part of the disputed tax may have to be paid first |
| Alternative dispute resolution | A facilitator under the NBR's ADR arrangements | Disputes where both sides want a negotiated figure | Availability and effect depend on the stage of the dispute; failure returns you to the appeal route |
| Second appeal | Taxes Appellate Tribunal (bench and venue confirmed on filing) | Points the Commissioner (Appeals) rejected; mixed fact and law | The tribunal is the final fact-finding forum, so evidence must be in by then |
| Reference on a point of law | High Court Division | Interpretation of the Act, jurisdiction, natural justice | Only questions of law; facts found below are generally binding |
| Writ petition | High Court Division | Action without jurisdiction, mala fides, no statutory remedy | Courts usually expect statutory remedies to be used first |
The other early decision is whether to argue at all. Some assessments are best settled: the cost of a multi-year appeal, the deposit tied up while it runs and the management time involved can exceed the tax at stake. Other assessments establish a position that will repeat every year, which makes them worth fighting. A good tax lawyer in Chittagong will tell you which kind you have.
Most tax disputes are lost on the record before anyone argues the law. What you file at the audit stage is usually what the tribunal will see.
Timing matters too. Appeal periods under the Act are short and run from service of the order or demand, not from the date you read it. Missing a deadline can leave you seeking condonation, which is discretionary. Treat every notice from a Taxes Zone as time-critical and send it to us the day it arrives.
How an audit, assessment and appeal unfold
The sequence below is typical for a company or individual whose return is selected for audit or whose income is challenged. Exact periods depend on the provision used and the date of service, and we confirm them against the Act and the order in each case.
- Notice and diagnosis. The circle issues a notice calling for documents, explanations or a hearing. We read the notice against the return, identify the provision relied on and list the issues before anything is filed.
- Written submission and evidence. We prepare a written reply supported by ledgers, bank statements, contracts, withholding certificates and, for companies, audited accounts. The aim is a complete record, because later forums rely on it.
- Hearing before the Deputy Commissioner. We attend with the client's accountants, answer queries and press for a reasoned order. Where documents are demanded that the law does not require, we say so in writing.
- Assessment order and demand. If the assessment goes against you, we review it for errors of computation, jurisdiction and reasoning, and diary the appeal deadline immediately.
- First appeal or ADR. We file the appeal with the Commissioner of Taxes (Appeals) in the Chattogram Taxes Appeal Zone, handle any required payment of the undisputed or prescribed portion, or pursue ADR where it fits.
- Tribunal. If the first appeal fails, we take the case to the Taxes Appellate Tribunal, wherever the assigned bench sits, with a paper book of the record and written arguments.
- High Court Division. Where the tribunal's decision turns on a question of law, we pursue a reference to the High Court Division in Dhaka, and resist enforcement steps where the law allows.
Throughout, we monitor recovery action. Tax authorities have powers to recover arrears, including through bank accounts, and an appeal does not automatically suspend them. Where a stay is needed, the application must be made promptly and supported properly.
Recurring income tax issues for Chattogram businesses
The same issues come up repeatedly in Chattogram's trading and manufacturing community. A tax lawyer in Chittagong spends much of the year on these rather than on headline disputes.
Withholding and source tax
Companies and many other entities must deduct tax at source from payments to suppliers, contractors, landlords, employees and non-residents, deposit it and file withholding returns. Failures here create liability for the payer as well as interest and penalties. Our page on withholding tax and VDS for suppliers explains the interaction with VAT deduction at source.
Advance income tax at import and source tax on exports
Importers clearing goods at Chattogram Custom House pay advance income tax at import, and exporters suffer tax deducted from export proceeds. Whether those amounts are adjustable against final liability, or represent a final or minimum tax, depends on the category of income and the Finance Act for the year. Getting this wrong distorts margins on every consignment. Our import and export compliance page covers the customs side.
Minimum tax and turnover-based exposure
Bangladesh applies minimum tax rules in several situations, so a loss-making business can still owe tax. Groups with thin margins, such as commodity traders and contract manufacturers, should model minimum tax before agreeing prices, not after the year closes.
Related-party and cross-border dealings
Companies with international related-party transactions must file a statement of those transactions with the return, and the transfer pricing rules allow adjustments where pricing is not at arm's length. Shipping agencies, buying houses and subsidiaries of foreign groups in Chattogram are the most exposed.
Incentives and tax holidays
Enterprises in export processing zones and economic zones, and some priority sectors, may qualify for exemptions or reduced rates. Conditions are strict and change with Finance Acts. Read our guide to tax holidays and incentives for EPZ and economic zone investors and our BEPZA page before relying on an incentive.
Many Chattogram disputes start with a mismatch between data the tax office already holds, such as import records, bank information and withholding returns filed by your customers, and the income shown in your return. Reconciling those sources before filing is the cheapest tax advice there is.
Documents and evidence to assemble
Whether the matter is an audit, an appeal or a transaction, the same core documents decide most outcomes. Gather what you can before the first meeting with your tax lawyer in Chittagong; we will tell you what is missing.
- Returns and assessments. Returns, acknowledgement slips and assessment orders for the years in question, plus any earlier years with similar issues.
- Notices and correspondence. Every notice from the circle or zone, with envelopes or email headers showing the date of service.
- Accounts. Audited financial statements for companies, trial balances, general ledgers and fixed asset registers.
- Bank evidence. Statements for all accounts, including those of directors where funds have moved between them and the company.
- Withholding records. Certificates for tax deducted from your receipts, challans for tax you deposited and copies of withholding returns.
- Customs and trade papers. Bills of entry, export documents and LC records showing advance income tax and source tax paid.
- Contracts. Supply, agency, service, loan and related-party agreements that explain the payments under scrutiny.
- For individuals. Wealth statements, title deeds, share certificates, savings certificates and evidence of foreign income or remittances.
Risks and common mistakes
These are the errors we see most often when clients come to a tax lawyer in Chittagong after a dispute has already escalated.
Ignoring a notice because the accountant "will handle it"
Notices under the Income Tax Act carry deadlines, and silence can allow the Deputy Commissioner to assess on the information available. That usually means a higher figure with little reasoning to attack. Accountants are essential, but someone must own the legal response, confirm the date of service and diary every deadline. We recommend that every notice is copied to one responsible person in the business and to counsel on the day it arrives, so the strategy is set before the first reply is drafted.
Filing new evidence too late
Appellate forums are reluctant to admit documents that could have been produced at assessment. If ledgers, contracts or bank statements were not filed when the Deputy Commissioner asked for them, the tribunal may decline to consider them. The safest course is to treat the audit stage as the trial: produce a complete, indexed record with a covering submission explaining each document. This also makes settlement easier, because the tax office can see the strength of your position.
Missing the appeal deadline or the pre-deposit
Appeal periods run from service, and appeals are admitted only after the required payment: according to PwC and KPMG summaries of the Finance Act 2026, a pre-deposit of 1% of the disputed tax for a first appeal, 3% for the Tribunal and 10% for a High Court Division reference, with no power to waive it. Clients sometimes lose the right to appeal while negotiating informally or waiting for funds. Where cash is tight, plan the deposit alongside the appeal and consider whether a stay or instalment arrangement is available. Condonation of delay is possible in some cases but is discretionary, and you should never rely on it.
Weak documentation of related-party payments
Management fees, royalties, commissions and interest paid to group companies or directors' businesses are frequent targets. Without written agreements, evidence that services were actually rendered and a rationale for pricing, the tax office may disallow the expense or treat it as income. Foreign-owned companies face the additional question of whether remittance is permitted under foreign exchange rules, which we cover on our foreign exchange compliance page.
Wealth statement gaps for individuals
Business owners and professionals in Chattogram often hold land, flats, savings instruments and family loans that were never fully reflected in their wealth statements. When assets appear in registration records, bank data or a purchase, the gap can be treated as unexplained investment. Correcting the position voluntarily, with advice on the consequences, is usually far better than waiting for the tax office to find it, particularly before buying or selling property.
Cross-border and NRB tax questions
Chattogram families and businesses are unusually international. Probashis in the Gulf, the United Kingdom and Singapore own land and flats in the city, receive rent, and sell inherited property. Foreign companies run subsidiaries, liaison offices and project sites in the export zones and around the port. Each raises its own income tax questions.
For non-resident Bangladeshis, the key issues are residence status for the year, whether foreign income is taxable in Bangladesh, the tax on Bangladeshi rent and gains, and the relief available under any double taxation agreement between Bangladesh and the country of residence. A tax lawyer in Chittagong should also check how sale proceeds can be remitted abroad. Our NRB legal services page covers the wider picture.
For foreign investors, withholding on payments to non-residents, the treatment of technical and royalty fees, transfer pricing and the repatriation of dividends are central. Investment approvals that BIDA used to handle now sit with the Invest Bangladesh Authority, which began operating in August 2026 under the Invest Bangladesh Act 2026. TRW & Co's offices in Dhaka, Singapore, Dubai and London coordinate with home-country advisers so that the Bangladeshi and foreign tax positions are consistent.
How TRW & Co helps
We act as tax lawyers rather than return preparers. Our work sits alongside your accountants and focuses on the legal analysis, the record and the forum.
Audit and notice response
We review notices, set the strategy, draft submissions and attend hearings at the Chattogram Taxes Zones. The goal is a complete record and a reasoned order.
Appeals and tribunal work
We prepare and argue first appeals before the Commissioner of Taxes (Appeals) and second appeals before the Taxes Appellate Tribunal, wherever the assigned bench sits.
High Court references and writs
Our advocates take questions of law and jurisdictional challenges to the High Court Division, and seek interim protection where the law permits.
Transaction tax review
We identify income tax exposure in acquisitions, restructurings and asset sales and build protections into the documents. See our due diligence page.
Withholding and compliance health checks
We test withholding practice, related-party arrangements and incentive conditions against the Act and the current Finance Act, then fix gaps before an audit does.
NRB and investor advice
We advise probashis and foreign groups on residence, rent and gain tax, treaty relief and repatriation, coordinating with our offices abroad.
We do not promise outcomes, and we do not publish fee scales. After reviewing the papers we agree the scope and fee basis in writing. To start, send the notice or order and the relevant return through our contact page, or browse all our practices. For disputes already under way, our tax audits and appeals page goes further into procedure, and our corporate law page covers the company law side of restructurings.
Checklist for decision-makers
Use this list to test whether your business, or your family's affairs, are ready for scrutiny by the Chattogram tax offices.
- Do we know which Taxes Zone and circle holds our file, and who receives notices?
- Are all returns filed, including withholding returns, and do we hold acknowledgements?
- Have we reconciled income in the return with import records, bank data and customers' withholding certificates?
- Are related-party payments supported by agreements, evidence of services and a pricing rationale?
- Do we meet every condition of any exemption, reduced rate or tax holiday we rely on?
- Is every open notice or order diaried with its appeal deadline and any pre-deposit?
- For individuals: does the wealth statement reflect all land, flats, deposits and loans?
- For acquisitions: has a tax lawyer in Chittagong reviewed the target's open years before signing?
If you answer "no" or "not sure" to any of these, it is worth a conversation. Call +880 1779 127165, email info@trw.co or visit us at Room 4022, Annex 2, District and Sessions Judge Court Building, Court Hill (Porir Pahar), Kotwali, Chattogram 4000. The TRW & Co Chattogram office page explains how to reach us and the other courts and authorities we work with.
Frequently asked questions
01Which tax office handles my file in Chattogram?
Chattogram has several Taxes Zones, each divided into circles headed by a Deputy Commissioner of Taxes. Your circle depends on your taxpayer category and the NBR's allocation, and large taxpayers may sit with the Large Taxpayers Unit instead. Your circle appears on your TIN certificate and on notices you receive. If you are unsure, or your records have moved, we can confirm it before any filing is made so that replies and appeals go to the right office.
02I have received an income tax notice. What should I do first?
Note the date you received it, keep the envelope or email, and send a copy to your accountant and to us the same day. Do not reply informally or hand over documents without checking what the notice actually requires and which provision it relies on. We will identify the issues, the deadline and the documents needed, then prepare a written response. A complete record at this stage is the best protection if the matter later goes to appeal.
03How does an income tax appeal work in Bangladesh?
The first appeal against an assessment goes to the Commissioner of Taxes (Appeals); in Chattogram that is the Taxes Appeal Zone. A further appeal lies to the Taxes Appellate Tribunal, which sits in benches; confirm the venue when filing, as we have found no confirmed Chattogram bench. Questions of law can then be referred to the High Court Division. Each stage has a strict time limit running from service of the order, and, according to PwC and KPMG summaries of the Finance Act 2026, appeals now carry non-waivable pre-deposits of 1% of the disputed tax (first appeal), 3% (Tribunal) and 10% (High Court Division), so planning should start as soon as the assessment arrives.
04Can a tax dispute be settled without a full appeal?
Often, yes. Simple errors can be corrected by rectification, and the NBR operates alternative dispute resolution arrangements in which a facilitator helps the taxpayer and the tax office reach an agreed position. Whether ADR is available and suitable depends on the stage of the dispute and the issues involved. If ADR fails, the statutory appeal route remains, provided deadlines have been protected. We usually run settlement discussions and appeal preparation in parallel.
05Do probashis owning property in Chattogram have to pay tax in Bangladesh?
Rent from Bangladeshi property and gains on selling land or flats in Bangladesh are generally within the Bangladeshi tax net, whatever your residence. Whether your foreign earnings are taxable here depends on your residence status for the year. Relief may be available under a double taxation agreement with your country of residence. We review your position, coordinate with your adviser abroad and explain how sale proceeds can be remitted lawfully.
06What is the deadline for filing an income tax return?
The income year runs from 1 July to 30 June. Deadlines differ for individuals and companies and are often extended by the NBR; for the 2025–26 tax year the individual deadline was extended to 31 March 2026, with an online facility to request more time. Because extensions change each year, we confirm the current deadline for your category before advising. Late filing can lead to penalties and loss of certain benefits.
07Do you replace our accountants?
No. Accountants and income tax practitioners prepare accounts and returns and know your business well. We add the legal analysis: interpreting the Act and Finance Act, responding to notices, structuring submissions, representing you on appeal and before the High Court Division, and advising on transactions. Most of our tax work in Chattogram is done jointly with a client's existing accountants, with clear division of responsibilities agreed at the start.
Sources and official materials
- Income Tax Act 2023 — Principal income tax statute; replaced the 1984 Ordinance
- National Board of Revenue — Income tax administration, SROs, circulars and Finance Act changes
- NBR income tax field offices — Lists the Chattogram Taxes Zones and Taxes Appeal Zone
- NBR e-Return portal — Online return filing and time-extension applications for individuals
- NBR e-TIN registration — Taxpayer's Identification Number registration and certificates
- Supreme Court of Bangladesh — High Court Division tax references, writs and judgments
- Invest Bangladesh Authority — Successor to BIDA for investment approvals and incentives
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
