Facebook will appoint a representative and pay VAT and other applicable taxes in Bangladesh. This was announced in a press release issued by the posts and telecommunication ministry yesterday after a meeting between the representatives of the Facebook and the Posts and Telecommunications Minister Mustafa Jabbar in Dhaka yesterday. The Facebook has also agreed to abide by Digital Security Act and share information with law enforcement agencies as required by the law.
Facebook, however, declined to set up office or install its local server in Dhaka. It said it is not feasible due to low level of business despite having a large user base. Facebook also declined to sign any agreement for exchange of security information saying such agreement should be signed under government-to-government arrangement.
According to the new VAT provisions which came into effect from July 1, it is mandatory for online entities like Facebook, Google, YouTube etc. to set up offices in Bangladesh or appoint agents to pay VAT and other taxes to the government. Bangladesh has more than 98 million active internet connections and 35 million Facebook users as on August 2019. There is no report about the response from other social media platforms like Google, YouTube and others on the requirement to pay taxes in Bangladesh.
