(1) Notwithstanding anything contained in any other provision of this Chapter, subject to the provisions of sub-section (2), the specified person or any other person responsible for making any payment to a non-resident which is taxable to the non-resident under this Act, shall, at the time of such payment, unless he himself is liable to pay the tax as an agent, deduct or collect tax on the amount payable, not exceeding 30% (thirty per cent), as specified.

(2) Where the Board, being satisfied on the basis of the application received with the required documents for the purpose, within 30 (thirty) days of receipt of the application, may issue a certificate to the effect that a non-resident, due to tax treaty or any other reason, shall not pay any tax or shall pay tax at a reduced rate in Bangladesh, in which case the payment of tax referred to in sub-section (1) shall be made without deduction of tax or at a reduced rate.

(3) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be set off against a demand.

(4) Where capital gains arise in favour of a non-resident assessee from the transfer of any shares in a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not effectuate the transfer unless the tax payable on the said capital gains has been paid.

(5) If any tax collected under this section is deposited in the name of a resident person, the tax under this section shall be deemed to have not been collected.

(6) Deduction of tax at source under this section shall not be applicable on the following amounts remitted to a non-resident, namely:—

(a) arbitration fees;

(b) money remitted for Hajj;

(c) money for priority pass.