Find Accountancy, Audit and Tax expertise in Bangladesh
There are over 200 accountancy and audit service providers in Bangladesh, largely based in Dhaka and Chittagong. All of the ‘Big Four’ international accounting firms operate in the country. Increasing efforts have been made to strengthen and standardise accounting and auditing practices. Only partnership firms with seven years experience in professional practice are allowed to audit listed companies. Additionally, all businesses must maintain proper books of accounts in the local currency and have their accounts audited by qualified external auditors. Auditing practices are regulated by the Companies Act 1994, the Banking Companies Act 1991, the Insurance Act 1938, the Securities and Exchange Commission Act 1993, the Securities and Exchange Rules 1987, the Foreign Donations Regulation Rules 1978, and the Co-operative Societies Ordinance 1984. An accountancy conference in February 2012 in Dhaka noted that there was still a tendency for accounting and auditing practices to suffer from institutional weaknesses in regulation and enforcement of standards and rules. Indeed, Bangladesh placed 127th in the world (out of 144 countries) for the strength of its auditing and reporting standards in the World Economic Forum’s Global Competitiveness Report (2012-13), with a value of 3.7 out of 7, below the world mean of 4.6. In the 2011 World Bank’s Ease of Doing Business Index Bangladesh came 107th in the world (out of 183 countries) in relation to resolving insolvency, in comparison to India in 128th place.
Higher education is necessary to enter into training to become an accountant, although traditionally better-qualified graduates have tended not to pursue it as a career. Alternatively, individuals can enter the professional training with the Institute of Chartered Accountants if they possess the recognized ACMA/FCMA or ACCA/FCCA qualification. Official ACCA examination centres are in operation in both Dhaka and Chittagong. The accountancy profession is regulated by the Institute of Chartered Accountants of Bangladesh (ICAB). In 2012, the Institute had over 1200 chartered accountants, of whom around 760 were fellows and 480 were associates, and supported over 20,000 students.
Personal income tax, one of the main sources of government revenue in Bangladesh, is progressive, with rates for assessment year 2010-11 rising to 25%. Corporate tax was set at a standard rate of 27.5%, applicable to publicly traded companies. Tax rates for other corporations rose to 45% for mobile phone operating companies. Value Added Tax (VAT) is set at a standard rate of 15% and is added to goods and services at import stage, manufacturing, wholesale and retail levels. Bangladesh finds itself in 100th position in the world in the 2011 Ease of Doing Business Index for paying tax, substantially higher than India at 147th.
|Accountancy, Audit and Tax organisations in Bangladesh|
|The Institute of Chartered Accountants of Bangladesh||