NBR Tightens Asset Disclosure Rules

The National Board of Revenue (NBR) is preparing to introduce stricter measures aimed at curbing tax avoidance through the underreporting of inherited and gifted assets. Beginning from the next fiscal year, taxpayers will be required to disclose the financial value of assets received through inheritance or as gifts in their income tax returns.

According to NBR sources, a long-standing practice among some wealthy taxpayers has been to declare inherited properties, land holdings and gold assets in their tax files while listing their value as “unknown”. As a result, individuals possessing assets worth several crores of taka have often been able to maintain substantial wealth records without those assets being properly reflected in the overall valuation of their holdings.

Under the proposed changes, this practice will no longer be permitted. Taxpayers will be required to include the monetary value of all inherited and gifted assets when submitting their tax returns. The value of such assets will be incorporated into the taxpayer’s overall asset statement, allowing revenue authorities to obtain a more accurate picture of individual wealth.

Bangladesh does not impose a direct wealth tax. However, individuals whose net assets exceed Tk 40 million are subject to an annual surcharge on their income tax liabilities. Officials believe that the revised valuation requirements will significantly increase the number of taxpayers falling within this surcharge category.

Key Features of the Planned Changes

To facilitate accurate valuation, the NBR is expected to collect mouza valuation data covering the past 40 years from land offices across the country. The information will be incorporated into the online income tax return platform, enabling taxpayers and tax officials to determine asset values more consistently.

Officials expect that, once the new valuation methodology is applied, taxpayers will no longer be able to list the value of land, apartments or gold ornaments as “unknown”. The NBR believes that approximately 2,000 additional individuals will newly cross the Tk 40 million asset threshold as a result of the revised calculations. At the same time, the reported asset values of taxpayers already subject to the surcharge are expected to increase.

According to an NBR official, the expanded asset valuation process could generate approximately Tk 10 billion in additional revenue during the 2027–28 fiscal year. The anticipated increase would come primarily from a broader surcharge base resulting from more comprehensive reporting of assets.

The revenue authority is also preparing a new income tax circular, expected to be published by July. The circular will provide detailed guidance on valuation procedures and explain how inherited and gifted assets should be assessed and reported under the revised framework.

The initiative forms part of the NBR’s broader efforts to improve transparency in asset declarations, strengthen tax compliance and ensure that taxpayers’ reported wealth more accurately reflects their actual holdings.