Bangladesh

Corporate - Significant developments

Last reviewed - 18 December 2025

The Finance Bill, 2026, presented by the Finance Minister on 11 June 2026, was passed in the Parliament and thereafter assented by the President on 30 June 2026, prescribed amendments to Income-tax Act, 2023.

The Finance Ordinance, 2025, issued on 2 June 2025, prescribed certain amendments to the Income-tax Act, 2023 and was further modified via the Various Finance Related (Amendment) Ordinance, 2025, issued on 26 June 2025.
Specified disallowances not considered as special business income.

Tax deducted/ collected/ deposited in excess of tax calculated on regular basis will be eligible for refund or adjustment with prior/ subsequent years’ tax liability.
The pre-deposit on the difference between the assessed tax and the admitted tax liability is rationalised as below.

Level of authority	Existing	Amended
CT(A)	No pre-deposit requirement	1%
TAT	10%	3%
High Court division of Supreme Court	15%/ 25%	10%

Funds are not required to file income-tax returns, and tax deducted on their income will be considered as final tax.
Refund will be paid within 60 days of refund application. Taxpayer can approach to the Commissioner or the Board in case the refund is not issued.

Turnover tax not applicable on VAT and SD and other sources of income.
Tax deducted from income of a non-resident, not having a Permanent Establishment (PE) in Bangladesh, will be considered as final tax liability for such non-resident.

In a joint development/ real estate development arrangement, any cash, flats/ apartments, or other benefits received by a landowner from a developer in exchange for development rights are taxable as capital gains at 15% on the net gain (consideration received less acquisition cost).

If the provisions relating to deduction of tax at source are not complied with as per the provisions of Part 7 of the Act, the amount of tax under-deducted, collected or paid and an additional 50% that amount will be liable to tax.
Solar energy producers operating their own solar power centres to receive a full income-tax exemption on earned income up to 30 June 2035.
Edible oil manufacturers using locally grown oilseeds as raw materials to avail a phased income-tax exemption of 100%, 50%, and 25% over 10 years.
Scope of PE has been expanded to cover ‘digital’ or ‘online’ activity or presence of a non‑resident entity in Bangladesh, with 100,000 or more digital or online customers or subscribers.

A tax-neutral conversion of a firm into a company is exempt from capital gains tax if all assets and liabilities are transferred (subject to certain conditions).