Bangladesh

Corporate - Significant developments

Last reviewed - 03 January 2025

The Finance Ordinance, 2025, issued on 2 June 2025 (FO dated 2 June 2025), prescribed certain amendments to the Income-tax Act, 2023 and further modified through via the Various Finance Related (Amendment) Ordinance, 2025 issued on 26 June 2025.
Any distribution of post-tax profit of a joint venture shall not be considered as dividend if distributed to the co-venturer other than an individual.

Certain category of disallowances considered as special business income and taxable separately at regular rate of tax.

Where a taxpayer is liable to tax at reduced rates, specified inadmissible expenses (other than for non-compliance with WHT provisions) taxed at the same reduced rate.
Presumptive tax based on the gross receipts in case of taxpayers not specifically categorised enhanced to 1% from 0.6%.
Funds are not required to file income tax returns and tax deducted on their income will be considered as final tax.

WHT return will be filed on a quarterly basis instead of a monthly basis (25^th of the month succeeding the end of the quarter).

Minimum tax paid in excess of regular tax for any concerned period allowed to be carried forward and adjusted against any subsequent period’s excess of regular tax liability over minimum tax liability.

Tax exemptions for certain income allowed even through amended or belated return.