(1) Subject to the provisions of this Act, the income included in the sources of “Income from business” earned by an approved tax holiday entity shall be granted benefit of tax exemption fully or partially under Part 4 of the Sixth Schedule and this Chapter for the specified period subject to the prescribed limits, conditions and qualifications.

(2) Any benefit of income tax exemption availed under sub-section (1) shall not be included in the total income of the assessee, but shall be shown in the relevant part of the return.

(3) An approved tax holiday entity shall be granted tax exemption under sub-section (1), subject to the following conditions, namely:—

(a) the entity is owned and operated by such person, who is—

(i) any statutory body established by or under law having its head office in Bangladesh;

(ii) a company as defined in the Companies Act, 1994 (Act No. XVIII of 1994) having its registered office in Bangladesh and has a purchased or paid-up capital of not less than 20 (twenty) lakh Taka on the date of commencement of commercial production;

(b) the entity has not been formed by way of separation or reorganization or re-incorporation from any such business already in existence;

(c) any plant, machinery, equipment or any other important immovable property on an entity which is not previously used by any other entity in Bangladesh;

(d) the entity—

(i) has obtained TIN;

(ii) has maintained accounts in accordance with the provisions of this Act;

(iii) has maintained accounts independently and separately.

Explanation.—For the purpose of this section, “approved tax holiday entity” means an entity which has income from business relating to any income year, and which—

(a) has been approved by the Board for partial or full tax exemption under this Chapter;

(b) has been allowed for tax exemption or reduced tax rate in the concerned income year.