Bangladesh, July 12 -- A significant amendment to Bangladesh's income-tax law has paved the way for taxing foreign digital businesses that have no physical presence in the country but serve 0.1 million or above Bangladeshi users.

The new provision, effective from July 1, targets non-resident entities-both companies and individuals -- that earn income from digital activities involving users in Bangladesh. Only the portion of income attributable to Bangladesh would be subject to tax.

Under the amendment, a non-resident entity will be deemed to have a permanent establishment (PE) in Bangladesh if it has 100,000 or more digital or online customers or subscribers in the country.

Tax officials say information on the subscriber base of such d...