The services which will be of regular nature will include the following:

1. Accounting Service:

  • Assist in preparation of monthly statements
  • Assist in preparation of quarterly statements
  • Assist in preparation of annual financial statements

2. Financial Statements Audit:

  • Monthly financial statement audit
  • Quarterly financial statement audit
  • Annual financial statement audit

3. Tax planning management and assessment for:

  • Liaison office
  • Expatriate employees
  • Local employees

4. Secretarial and other services.

5. Time to time advice on all of the above.


1. Accounting Service

It is a routine function of the management to maintain records of all financial transactions, and prepare periodic financial statements based on that. These activities include:

  • Preliminary recording of financial transactions in the form of journal and preparation of vouchers.
  • Maintenance and preservation of documents in support of financial transactions.
  • Ensuring verification and approval of transactions and vouchers by the competent authority that covers receipts, disbursements, etc.
  • Making deduction of source taxes and preparing necessary statement and depositing the same to the Government Treasury.
  • Maintenance of books of accounts.
  • Classification of accounting transactions as per codes.
  • Making entry of the transactions in the books of accounts such as ledgers, registers, bank book, cash book etc.
  • Collecting statements from concerned banks and preparing and maintenance of bank reconciliation statements.
  • Preparation of schedule of fixed assets and making records thereof in the fixed assets register.
  • Balancing of accounts and preparation of Trial Balance.
  • Preparation of monthly, quarterly and yearly financial statements.
  • Communicating with the auditors with regard to accounting issues, if any.
  • Getting the annual accounts audited by the external auditors.
  • Conduct time to time physical verification of fixed assets.

While undertaking both accounting and auditing services for the same organization, there remains a potential risk of impairing independence of the auditors. Under this situation we would like to keep you informed that whatever accounting services we would provide are to be recognized as assistance to the management in executing their accounting functions. Hence, any policy related issues must be documented and approved by the management.

2. Financial Statements Audit

  • Our function as auditors of the liaison office in Bangladesh is to examine the monthly, quarterly and yearly statement presented to us by the Management of the liaison office. As auditors we will not be responsible for the preparation of the accounts, nor for the maintenance of the accounting records of the liaison office, which duties are imposed on the Management of the liaison office as per International Standards on Auditing as adopted in Bangladesh and other statutory rules and regulations.
  • We are required by laws to report to the Management of the liaison office whether in our opinion the financial statements of the liaison office gives a true and fair view of the state of the liaison office affairs at the date of ending the financial year, and of the revenue expenditure for the year ended on that date, and whether those accounts comply with the provisions of the requirement of liaison office management.
  • In arriving at our opinion we are required by the liaison office management to consider the following matters but only to report on any in respect of which we are not satisfied:
  1. Whether the liaison office has kept proper books of accounts
  2. Whether the liaison office balance sheet and revenue expenditure are in agreement with the books of accounts and returns.

3. Tax planning management and assessment

Our taxation services will include the following:

a. Taxation - Liaison office

  • Obtaining Taxpayers Identification Number (TIN)/ Tax Clearance Certificate from the tax authorities for the Liaison office.
  • Preparing and filing of income tax return along with relevant schedules and finalizing income tax assessment from the tax authority for the liaison office.
  • Appearing before the tax authorities to represent the company on any taxation matter in response to notices issued by the tax authority.
  • Advising on framing up of salary structure for local employees for making calculation of monthly tax liability of the taxable for local employees for deduction of tax at source.
  • Follow-up of files to expedite assessment procedure.
  • Preparing and filing of Annual Return of payroll of the employees as required under Section 108 of the Income Tax Ordinance with the tax authority.
  • Performing tax planning to minimize tax liabilities of the Liaison office.
  • Advising on withholding taxes from sub-contractors, suppliers and rent payable to landlords for depositing the same in the Government treasury.
  • Advising from time to time on various points relating to accounts as well as taxation of the liaison office.
  • Preparation of treasury chalan and submission of Tax and VAT Deduction at Sources (TDS) to the concerned tax and VAT authority.
  • Appearing before the first appellate tax authorities to represent the Liaison office on any taxation matter in response to appeal notices (if any), issued by them.
  • Appearing before the second appeal (tribunal) tax authorities (if any), to represent the Liaison office on any taxation matter in response to notices issued by them.

b. Taxation - Expatriates

  • Obtaining TIN Certificate for employees
  • Sitting with the employees individually and help them preparing their annual income tax return.
  • Filing annual income tax return of the employees and getting their personal income tax assessments finalized by the tax authorities.
  • Appearing before the tax authorities to represent the assesses on any taxation matter in response to notices issued by them.
  • Collection of individual tax clearance certificates, assessment orders and demand notice in support of the assessments.

c. Taxation - Local

  • Obtaining TIN Certificate for employees
  • Sitting with the employees individually and help them preparing their annual income tax return.
  • Filing annual income tax return of the employees and getting their personal income tax assessments finalized by the tax authorities.
  • Appearing before the tax authorities to represent the assesses on any taxation matter in response to notices issued by them.
  • Collection of individual tax clearance certificates, assessment orders and demand notice in support of the assessments.

4. Secretarial and others Services

  • Obtaining permission for setting up of the Liaison Office from Board of Investment (BOI).
  • Obtaining permission from Bangladesh Bank under section 18B for remittance of money from abroad.
  • Obtaining work permit from Board of Investment (BOI), and permission from Bangladesh Bank under section 18A for remittance of money abroad by expatriates.
  • Doing necessary works relating to passport and visa for expatriates.
  • Arranging security clearance from Special Branch, National Security Intelligence and Ministry of Home Affairs, Govt. of Bangladesh for expatriates.
  • Renewing permission of the Liaison Office from BOI and 18A and 18B from Bangladesh Bank as and when required.
  • Obtaining VAT registration, if required.
  • Advising from time to time on various points relating to accounts as well as taxation of the Liaison office and also of the employees.
  1. Helping out to deal with various compliance issues with Board of Investment (BOI);
  2. Helping out obtaining permissions and compliances with Bangladesh Bank/ Central Bank under Foreign Exchange Regulation Act.
  3. Helping out to prepare all required returns and submit to Registrar of Joint Stock Companies and Firms (RJSC) timely in compliance with the Companies Act 1994.

5. Fee Structure

For the above services, the break down of professional fees, as mutually agreed by us, is shown hereunder:

Sl.# Particulars of services US$
i.

Financial Statements Audit and Accounting Services:


Preparation of monthly financial statement and conducting monthly of the financial Statement ….. per month
Preparation of quarterly financial statement conducting quarterly audit and submission the same to BOI and Bangladesh Bank ….. per month

Preparation of annual Financial Statement and conducting Audit of the Financial Statement and submission the same to Income tax authorities ….. per month
ii. Tax planning management and assessment:
Preparation and submission of company’s income tax return, attending hearing at DCT’s level from time to time and finalization of income tax assessment ….. per month

Per expatriate employee’s salary tax management and finalization, yearly. ….. per month
Per local employee’s salary tax management and finalization, yearly ….. per month
iii. Secretarial and others Services:
Obtaining permission for setting up a liaison office from BOI and 18B permission from Bangladesh Bank. -
Obtaining renewal of liaison office permission from BOI and 18B permission from Bangladesh Bank. -
Obtaining work permit for expatriate employee from BOI and 18A permission from Bangladesh Bank. ….. per month
Obtaining renewal of work permit for expatriate employee from BOI and 18A permission from Bangladesh Bank. ….. per month
Three months visa extension with one journey, Six months visa extension with unlimited journey and one year multiple visa with unlimited journey, if required. Security clearance from SB, NSI and Ministry of Home Affairs. Mutual understanding

 

The Government fees, charges and other expenses i.e. incidental expenses will be borne by client.

Mode of payment:

For services rendered, a yearly invoice would be raised against which the payment would be made by the following months. The invoice may include partial work as well.

This contract is made initially for two years upto 31 December 2010 which would be subject to review and renewable mutually.

If you accept the above terms and conditions of service, please sign the duplicate copy of this letter and return same to us.

 

 


Per expatriate employee’s salary tax management and finalization, yearly.

….. per annum


Per expatriate employee’s salary tax management and finalization, yearly.

….. per annum