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Bangladesh
Corporate - Taxes on corporate income
Last reviewed - 31 July 2026A resident company is taxed on its worldwide income. A non-resident company is taxed only on income that accrues, arises, or is received in Bangladesh, or that is deemed to accrue, arise, or be received in Bangladesh.
Assessment year (AY) is defined as the period starting from 1 July of a year after the end of any tax year or accounting year of the company.
For example:
- For a tax year from 1 July 2025 to 30 June 2026, the AY will be from 1 July 2026 to 30 June 2027.
- For a tax year from 1 January 2025 to 31 December 2025, the AY will be from 1 July 2026 to 30 June 2027.
A subsidiary or a branch of a foreign company may apply to the National Revenue Board (NBR) and seek approval for a different tax year in Bangladesh in alignment with its parent’s tax year.
The corporate income tax (CIT) rates applicable to a Bangladeshi company and a foreign company for AY 2026-27 to AY 2030-31 are as follows:
|
Category of taxpayer |
Applicable tax rate (%) for the AY 2026-27 to AY 2030-31 |
|
Publicly traded company that issues shares worth 10% or more than 10% of its paid-up capital through an initial public offering (IPO) |
22.50/ 20 if all transactions are through bank transfer |
|
Publicly traded company that issues shares worth less than 10% of its paid-up capital through an IPO |
25/22.5 if all transactions are through bank transfer |
|
Other companies excluding the above category |
27.50/25% if all transactions are through bank transfer |
|
Publicly traded bank, insurance, or financial institution (except merchant bank) |
37.50 |
|
Non-publicly traded bank, insurance, or financial institution |
40.00 |
|
Company producing all types of tobacco items, including cigarette, bidi, chewing tobacco, and gul |
45.00 |
|
Taxpayer who is not a company but manufactures tobacco products |
45.00 |
|
Base rate for mobile phone operator companies |
45.00 |
|
Mobile Phone Operator Companies – offering 10% shares of its paid-up capital through an IPO (with pre-IPO placement not exceeding 5%) to become a publicly traded company after conversion |
40.00 |
|
Mobile Phone operator companies transferring minimum 20% of paid up capital through IPO |
10% rebate on applicable income-tax in the year of transfer |
|
Association of persons (AOP)/ Trust/ Firm/ AP |
27.50 |
|
Cooperative Society registered under the Cooperative Societies Act, 2001 |
20.00 |
|
Private university, private medical college, private dental college, private engineering college, or private college solely dedicated to imparting education on information technology |
5.00 |
* Conditions: All transactions to be undertaken through bank transfer.
** All income is received through bank transfer.
Advance-tax, final tax, and turnover tax
- Any excess tax deducted, collected, or paid over the taxpayer’s assessed tax liability is refundable.
- Taxpayers may either claim a refund of the excess tax or carry it forward to offset prior tax arrears or future tax liabilities.
- Tax deducted or collected under sections 138 and 139 is generally treated as the final tax liability for the relevant income source(s).
- Advance income-tax deducted or collected at source from persons exempt from filing an income tax return under section 166(2) is also treated as their final tax liability.
- Where the final tax liability regime applies, tax must still be calculated on the reported income at the applicable rate. If the resulting tax exceeds the final tax already paid through deduction or collection, the higher amount becomes payable.
- If the tax payable on income from any person’s business or profession is less than the turnover tax mentioned in the table below, then regardless of profit or loss, turnover tax will apply to the gross receipts of the business or profession at the rates specified in the table below.
The rate of turnover tax is as follows –
|
Class of taxpayer |
Rate of minimum tax on the gross receipts (%) |
|
Manufacturer of cigarettes, bidi, chewing tobacco, smokeless tobacco, or any other tobacco products |
3.00 |
|
Carbonated or sweetened beverages |
2.50 |
|
Mobile phone operator, NTTN |
1.50 |
|
Any other case |
1.00 |
Turnover tax will not be applicable on the following business or profession –
- Import, distribution or sale in the open market of fertilizers, seeds of daily necessities by any government agency or state-owned institution or corporation.
- Commission business
- DD (Delivery Order) business
- Money exchange business
- Business of buying and selling gold, silver, gold ornaments, silver ornaments, gems, diamonds or platinum.
However, the rate of tax would be 0.20% of the gross receipts for an industrial undertaking engaged in the manufacturing of goods for the first three income years since the commencement of commercial production.
In a scenario where the taxpayer enjoys exemption from income or the income is taxable at a reduced rate of tax, the minimum tax would be calculated by applying the rates mentioned above as reduced in proportion to the tax exemption.
Turnover tax paid in excess of regular tax for any concerned period is allowed to be carried forward and adjusted against any subsequent period’s regular tax liability.
Where any surcharge, any additional interest etc. is payable under the provisions of the Act, it will be payable in addition to the turnover tax and the final tax.
Bangladesh contacts
Bangladesh contacts
Bangladesh News
Partner, Tax and Regulatory Services, Member of the Board of Directors, PwC Bangladesh
+88 01622 105174/ +91 9830014397
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