1. Sections 55 and 56 shall not apply in determining the “Income from business” for the growth year of a startup registered under this Act.

2. Where in any growth year, any loss is incurred by a registered startup and the loss cannot be set off in the relevant assessment year, the amount of loss shall be carried forward and set off to the next 9 (nine) successive assessment years.

3. The rate of minimum tax as provided in sub-section (5) of section 163 for growth years of a registered startup shall be 0.1% (zero point one percent).

4. A startup shall have no reporting obligations other than filing returns under section 166 and 177, if the startup provides permanent access to its systems to the income-tax authority.

5. A startup, to enjoy the benefit of sandbox, shall be registered with the National Board of Revenue.

6. A startup shall not be eligible for registration in the following cases—

(a) if it is incorporated prior to first day of July 2017; or

(b) if it is incorporated between July 1, 2017 and June 30, 2023 and fails to get registration with the National Board of Revenue by June 30, 2024; or

(c) if it is incorporated after 1 July 2023 and fails to register under this paragraph by 30 June of the year following the year of incorporation.

7. For the purpose of this part—

(a) “growth years” means—

(i) 3 (three) years from July 1, 2023 to June 30, 2027 for startups incorporated between July 1, 2017 and June 30, 2023 and registered with the National Board of Revenue by June 30, 2024; or

(ii) 5 (five) years from the year of incorporation for startups incorporated on or after July 1, 2023 and registered under this section by June 30 following the year of incorporation; (b)

(b) “innovation” means the process of creating value by offering noble solution to a significant problem or a set of problems or by significantly improving an existing solution;

(c) “startup” means a company with annual turnover not exceeding Taka 100 (hundred) crore in any financial year and that-

(i) is incorporated under the Company Act, 1994 (Act No. XVIII of 1994); and

(ii) is engaged towards deployment or commercialization of new products, process or service driven by innovation, development and technology or intellectual property; and

(iii) is not a company formed under a scheme of amalgamation or demerger.