Freelancing income withheld at source, decision to refund previously deducted money

The government's new decision has brought big good news for the country's freelancers. For a long time, freelancers in the information technology (IT) sector used to deduct 7.5 percent tax at source on their income earned from abroad. After the Prime Minister's special instructions, that tax has been completely withdrawn.

Following this government decision, leading private sector bank Dutch-Bangla Bank has already announced the suspension of tax deduction at source on freelance income. At the same time, it has been informed that the process of quickly refunding the money from freelancers from whom tax has already been deducted has been started.

The matter was confirmed in a notification given on the official Facebook page of Dutch-Bangla Bank on Friday (June 5).

The bank's public relations officer Sagir Ahmed said that earlier, 7.5 percent tax was deducted at source on the income of IT freelancers as per the rules. However, this tax will no longer be deducted from now on to develop the IT sector and encourage the youth.

He further said that as per the Prime Minister's instructions, the bank is implementing the decision quickly and the process of refunding the previously deducted money has also begun.

Meanwhile, those involved in the sector believe that this decision of the government and the quick initiatives of the banks will further energize the country's freelancing and IT sectors and create new opportunities for the youth.