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Bangladesh
Corporate - Withholding taxes
Last reviewed - 31 July 2026Every person responsible to deduct or collect tax is required to obtain a Withholder Identification Number (WIN). WIN is replaced with Tax Identification Number. WHT returns to be filed on a quarterly basis (25th of the month succeeding the end of the quarter).
There is an obligation on the payer (either resident or non-resident) of income to withhold tax when certain specified payments are credited and/or paid. Some of the expenses that require WHT are as follows.
In case of residents, the rate of WHT is increased by 50% of the applicable rate in case the payee fails to submit its proof of submission of return (PSR) to the payer. An increase in the rate of WHT on account of non-submission of PSR is not applicable in case of persons exempted from filing a return of income.
Residents (i.e. where payee is a resident)
|
Particulars |
Rate |
|
Deduction of tax from amount paid to a beneficiary of the WPPF |
10% |
|
Deduction of tax from royalty, franchise or license, trademark, patent, copyright, industrial design, plant variety, geographical indication product, or any other property relating to intellectual property or abstract or intangible matter |
10% |
|
Deduction of tax at source from payments to newspaper, magazine, private television channel, private radio station, or any other person (other than media buying agent) for advertisement, promotion, or any other purpose |
5% |
|
Deduction from payment to actors, actresses, producers, etc. |
10% |
|
Deduction or collection at source from commission, discount, fees, etc.+ |
10% (commission, discount, fees, etc.) / 1.5% (paid for promotion to person engaged in distribution or marketing) / 0.25% (for goods sold to distributor or person under contract below the retail price) |
|
Collection of tax from travel agent |
0.30% on the value of tickets |
|
Deduction from Commission of Letter of Credit (LC) |
5% |
|
Deduction of tax from any payment in excess of premium paid on life insurance policy |
5% |
|
Deduction of tax at source from fees of surveyors of a general insurance company |
15% |
|
Deduction of tax from interest paid to any person other than a bank or financial institution |
10% |
|
Deduction of tax from interest on saving instruments |
10% |
|
Deduction of tax at source on interest on securities |
10% |
|
Deduction of tax at source on discount on the face value of Bangladesh Bank bills |
Highest rate applicable |
|
Deduction of tax at source from rent in case of the following:
|
10% |
|
Deduction of tax on account of renting or using the space of a convention hall, conference centre, room, or, as the case may be, hall, hotel, community centre, or any restaurant |
10% |
|
Deduction of tax at source from export cash subsidy |
5% |
|
Commission or remuneration paid to the agent of a foreign buyer |
7.5% |
|
Deduction of tax from dividends to a resident or non-resident Bangladeshi |
In case of a natural person, 15%. In case of person other than a natural person, 20% The WHT on dividend to include dividends paid to unit holders as well. |
|
Collection of tax on account of import of goods |
/0% to 20% (based on the HSN code of the product) |
|
Deduction of tax from any sum remitted from overseas by way of fee, service charges, commission, remuneration, or rent, called by whatever name, or by revenue sharing of any name and nature for the following: |
|
|
5% |
|
1% of the gross bill received or 10% of the said commission, whichever is higher, in case commission is specifically mentioned |
|
Nil |
|
Nil |
|
Collection of tax by the city corporation or Paurashava at the time of renewal of trade licence |
BDT 3,000 (Dhaka South City Corporation, Dhaka North City Corporation, Chittagong City Corporation)/ BDT 2,000 (any other city corporation)/ BDT 1,000 (any Paurashava at any district headquarter]/ BDT 500 (in any other Paurashava) |
|
Collection of tax on the sale price of goods or property sold by public auction |
10% |
|
Sale of tea by public auction |
1% |
|
Land sold in plot form by public auction |
Nil |
|
Collection of tax on transfer of shares from a resident person to another person |
15% |
|
Payment of fees to the regulatory authority in respect of revenue distribution, any licence fee, or any other fee by a tower-sharing company and others |
20% |
|
Gain on transfer of listed securities by:
|
15% |
|
Tax on the transaction value of shares, debentures, mutual funds, or securities paid by the member of the stock exchange |
0.03% |
|
Purchase of electricity |
3% |
|
Income received from lotteries etc. |
25% |
|
Purchase of specified jewellery (gold, silver, etc.) |
0.5% |
|
Tax Collection from retailer on goods manufactures or purchased |
0.2% |
|
Tax Collection on admission/ renewal/ transfer or change of club membership |
10% |
|
Deduction of tax from payment to contractors, suppliers, etc. |
Please refer to the below table. |
|
Deduction of tax from payment in respect of services |
Please refer to the below table. |
|
Deduction from payment on account of local LC |
Please refer to the below table. |
|
Deduction of tax at source from interest on saving deposits, fixed deposits, etc. |
Please refer to the below table. |
Deduction of tax from payment to contractors, suppliers, etc.
|
Nature of supply |
Rate (%) |
|
In case of industrial undertaking engaged in the production of mild steel (MS) billets and in case of locally procured MS scrap |
0.50 |
|
In case of oil supplied by oil marketing companies |
0.60 |
|
In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount |
1.00 |
|
In case of supply of paddy, paddy husk, rice, nutritional rice kernels, iodine, wheat, potatoes, cattle, cattle bones, poultry, fish, meat, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chilies, pulses, corn, flour, salt, edible oil, sugar, seeds, jute, jute sticks, cotton, mustard, sesame, raw tea leaves, pepper, cardamom, cinnamon, cloves, bay leaves, eggs, vegetables, lemon, raw pepper, liquid milk, sawdust, poultry feed, pelleted poultry feed, mushrooms, honey, jaggery, leaves and bark of plants other than tobacco, vine leaves, chitagur, kheil, soybean meal, D-O-R-B (De-oiled Rice Bran), raw hides, in the case of organic fertilizers, organic pesticides or insecticides, supply |
0.50 |
|
Supply of gold, silver, gold ornaments, precious stones/ diamonds |
0.5 |
|
In case of supply of yarn |
1 |
|
All kinds of fruits, including dates |
2.00 |
|
In case of industrial undertaking engaged in producing cement, iron, or iron products, except MS billets |
2.00 |
|
In case of supply of oil by any company engaged in oil refinery, on any amount |
1 |
|
In case of company engaged in gas transmission, on any amount |
3.00 |
|
In case of company engaged in gas distribution, on any amount |
0.60 |
|
In case of supply of 33KV to 500KV Extra High Voltage Power Cable manufactured by a company who has its own Vertical Continuous Vulcanisation line at the local level |
3.00 |
|
In case of supply of books to a person other than the government, or any authority, corporation, or body of the government, including all of its attached and sub-ordinate offices |
3.00 |
|
Supply of recycled lead |
3.00 |
|
Supply of raw materials & packing materials used in industrial production |
3.00 |
|
In case of supply of any type of tobacco products, including cigarettes, bidis, jarda, tobacco leaves, gul |
10.00 |
|
In the field of manufacturing, process or conversion, construction, engineering or any other similar work |
5.00 |
|
Supply of raw materials to be used in recycling industries |
1.50 |
|
Supply of recycled plastic, polythene, battery, lead, electrical, electronics, paper, glass and other recyclables |
1 |
|
In case of supply of raw materials to be used in recycling industries |
1 |
|
Supply of cement, iron, iron products, ferroy alloy products other than MS billets |
2 |
|
Sub-contracts provided by 100% export-oriented garment industries |
1.00 |
|
Any item not covered above |
5.00 |
Deduction of tax from payment in respect of services
|
Description of service and payment |
Rate |
|
Advisory or consultancy services and professional services - payment to individual |
15% |
|
Advisory or consultancy and professional services - payment to other than individual |
7.5% |
|
Technical services fee, technical know-how, or technical assistance fee - payment to individual |
15% |
|
Technical services fee, technical know-how, or technical assistance fee - payment to other than individual |
10% |
|
Cleaning, personal security, manpower supply, creative media, print and electronic media agency services |
On Commission 10%, On gross bill 1% |
|
Catering, Public Relations, event management, training/ workshop management, courier, packing & shifting, recovery/ collection agency, similar services |
2% on gross bill |
|
Indenting commission |
7.5% |
|
Meeting fees, training fees, or honorarium |
20% |
|
Mobile network operator, technical support service provider |
10% |
|
Credit rating agency |
10% |
|
Motor garage or workshop |
5% |
|
Private container port or dockyard service |
5% |
|
Shipping agency commission |
On commission 10%, On gross bill 1% |
|
Radio/ TV operator, berth operator, terminal operator, ship leasing operator |
10% on commission or fee/ 5% on gross amount |
|
Any type of sharing economic platform services, transportation, car rental, carrying services, repair & maintenance; ride‑sharing, working space provision services, housing provision services |
2% |
|
Wheeling charge for electricity transmission |
3% |
|
Internet service |
5% |
|
Agent, distributor, agency, or channel partner of a mobile financial service provider, by whatever name called, of mobile financial services |
10% |
|
Freight forward agency |
On commission 10%, On gross bill 1% |
|
Any other service not described in Sl. Nos.1 to 18 that is not tax deductible under any other section of the Act* |
10% |
* For any service provided by a bank, insurance, financial institution, or any institution providing mobile financial services other than those mentioned in Sl. Nos. 1 to 18 of the table, the deduction of tax under this rule will not be applicable
** (b) if both commission or fee and the total bill amount is mentioned the WHT amount will be higher of the following:
- Applying the relevant rate in the table on the amount of commission.
- Applying the relevant rate in the table on the total bill
Deduction from payment on account of local Letter of Credit (LC)
|
Description of service and payment |
Rate (%) |
|
Local LC not being in the nature of distributor financing |
3 |
|
Local LC in the nature of distributor financing |
1.5 |
|
Local LC for the purchase or procurement of all kinds of products and computers or computer accessories |
2 |
|
Local letter of credit for the purchase or procurement of paddy husk, rice, rice kernel, wheat, potato, cattle, cattle bones, poultry, fish, shrimp, meat, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chilies, pulses, corn, flour, salt, edible oil, sugar, seeds, jute, jute sticks, mustard, sesame, raw tea leaves, pepper, cardamom, cinnamon, cloves, bay leaves, eggs, vegetables, lemon, raw chilies, liquid milk, sawdust, poultry feed, pelleted poultry feed, mushrooms, honey, jaggery, leaves and bark of plants other than tobacco, chitagur, kheil, soybean meal, D-O-R-B (De-oiled Rice Bran), cotton, raw hides, in case of opening or making local credit notes or any other financing agreement for the purchase of organic fertilizers, organic pesticides, handicraft products |
0.5 |
|
Local LC for the purchase or procurement of yarn |
1 |
|
Opening of local credit or any other financing agreement in the case of sale of cement, iron or iron products, ferro alloy products other than MS billets |
2 |
Deduction of tax at source from interest on saving deposits, fixed deposits, etc.
|
Type of payee (income recipient) |
Rate (%) |
|
Company, trust, AoP |
20 |
|
Person other than the above |
10 |
Non-residents (i.e. where the payee is a non-resident)
Deduction of tax from the income of non-residents
|
Description of service and payment |
Rate (%) |
|
Advisory or consultancy service and professional service - individual |
20.00 |
|
Advisory or consultancy and professional service - other than individual |
10.00 |
|
Pre-shipment inspection service |
20.00 |
|
Technical services, technical know-how, or technical assistance – individual |
20.00 |
|
Technical services, technical know-how, or technical assistance – other than individual |
10.00 |
|
Architecture, interior design, landscape design, fashion design, or process design |
15.00 |
|
Certification, rating, etc. |
15.00 |
|
Charge or rent for satellite, airtime, or frequency; rent for channel broadcast |
20.00 |
|
Legal service |
20.00 |
|
Event management |
20.00 |
|
Commission |
15.00 |
|
Royalty, license fee, or payments related to intangibles |
20.00 |
|
Interest |
10.00 |
|
Advertisement broadcasting |
15.00 |
|
Advertisement making or digital marketing |
10.00 |
|
Air transport or water transport (other than persons referred to in sections 259 and 260 of the Income Tax Act 2023) |
6.00 |
|
Contractor or sub-contractor or sub-sub-contractor for manufacturing, process or conversion, works, construction, engineering, or any other similar work |
6.00 |
|
Supplier |
6.00 |
|
Capital gains |
15.00 |
|
Insurance premium |
5.00 |
|
Rental of machinery, equipment, etc. |
7.50 |
|
Dividend: |
|
|
Company, fund, and trust |
20.00 |
|
Any other person, which is not a company, fund, trust |
25.00 |
|
Artist, singer, or player |
30.00 |
|
Salary or remuneration |
30.00 |
|
Exploration or drilling in petroleum operations |
5.25 |
|
Survey for coal, oil, or gas exploration |
15.00 |
|
Fees, etc. of surveyors of general insurance company |
5.25 |
|
Any service for connecting oil or gas field and its export point |
5.25 |
|
Bandwidth payment |
10.00 |
|
Courier service |
10.00 |
|
Any other payments |
20.00 |
Note that WHT does not to apply on certain following payments to non-residents, subject to conditions:
- Payment to any government authority of a foreign state.
- Payment of subscription fee to an internationally recognised professional body.
- Liaison office or branch office expenses.
- International marketing and product development expenses.
- Tuition fees through an authorised dealer banker as per foreign exchange laws.
- Any kind of security deposit.
- Arbitration fee.
- Hajj payment.
- Priority pass.
WHT return will be filed on a quarterly basis instead of a monthly basis (25th of the month succeeding the end of the quarter).
Where, in respect of any payment under this section, the NBR, on an application made in this behalf, is satisfied that, due to a DTAA or any other reason, the non-resident is not liable to pay any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the NBR may issue a certificate within 30 days from the date of receipt of such application, along with all the documents as required by the NBR, to the effect that the payment referred to will be made without any deduction or, in applicable cases, with a deduction at the reduced rate as mentioned in the certificate.
The tax deducted from a non-resident payee who does not have any PE in Bangladesh, will be considered as the final tax liability of the recipient on the income on which such tax has been deducted and not be set off against any claim.
In case of capital gains arising in favour of a non-resident from the transfer of shares, the authority effecting the transfer of shares shall not effectuate the transfer unless tax on the capital gains has been paid.
Double Taxation Avoidance Agreement (DTAA) rates
Some DTAAs provide for lower WHT rates from certain types of income as follows:
| Recipient | WHT (%) | |||
| Dividend | Interest | Royalty | Fee for technical service (FTS) | |
| Non-treaty | 20/30 | 20 | 20 | 20 |
| Treaty: | ||||
| Bahrain | 10 (3)/ 15 | 10 | 10 | NA |
| Belarus | 10 (13)/ 12 | 7.5 | 10 | NA |
| Belgium | 15 | 15 | 10 | NA |
| Bhutan | 10 (3)/ 15 | 10 | 10 | 10 |
| Canada | 15 | 15 | 10 | NA |
| China | 10 | 10 | 10 | NA |
| Czech Republic | 10 (2, 18)/ 15 | 10 | 10 | 10 |
| Denmark | 10 (1)/ 15 | 10 | 10 | NA |
| France | 10 (1)/ 15 | 10 | 10 | NA |
| Germany | 15 | 10 | 10 | NA |
| Hong Kong | 10 (13)/ 15 | 10 | 10 | 10 |
| India | 10 (2)/ 15 | 10 | 10 | NA |
| Indonesia | 10 (3)/ 15 | 10 | 10 | NA |
| Italy | 10 (4)/ 15 | 10 (5)/ 15 | 10 | NA |
| Japan | 10 (6)/ 15 | 10 | 10 | NA |
| Korea | 10 (1)/ 15 | 10 | 10 | NA |
| Kuwait | 5 (17)/ 10 | 10 | 10 | NA |
| Malaysia | 15 | 15 | 15 | NA |
| Maldives | 10 (18)/ 15 | 10 | 10 | 10 |
| Mauritius | 10 (16) | Not taxable (7) | Not taxable (8) | NA |
| Morocco | 10 | 10 | 10 | NA |
| Myanmar | 10 | 10 | 10 | NA |
| Nepal | 10 (3)/ 15 | 10 | 15 | 15 |
| The Netherlands | 10 (19)/ 15 | 10 | 10 | 10 |
| Norway | 10 (3)/ 15 | 10 | 10 | NA |
| Pakistan | 15 | 15 | 15 | NA |
| The Philippines | 10 (9)/ 15 | 15 | 15 | NA |
| Poland | 10 (3)/ 15 | 10 | 10 | NA |
| Romania | 10 (3)/ 15 | 10 | 10 | NA |
| Saudi Arabia | 10 | 7.5 | 10 | NA |
| Singapore | 15 | 10 | 10 | NA |
| Sri Lanka | 15 | 15 | 15 | NA |
| Sweden | 10 (10)/ 15 | 10 (5)/ 15 | 10 | NA |
| Switzerland | 10 (11)/ 15 | 10 | 10 (16) | NA |
| Thailand | 10 (1)/ 15 | 10 (12)/ 15 | 15 | NA |
| Turkey | 10 | 10 | 10 | NA |
| United Kingdom | 10 (13)/ 15 | 7.5 (5)/ 10 | 10 | NA |
| United Arab Emirates | 5 (14)/ 10 | 10 | 10 | 10 |
| United States | 10 (15)/ 15 | 10 | 10 | NA |
| Vietnam | 15 | 15 | 15 | NA |
Notes
- If the beneficial owner is a company (other than a partnership) that directly holds at least 10% of the capital of the company paying the dividends.
- If the beneficial owner is a company that directly holds at least 25% of the capital of the company paying the dividends.
- If the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends.
- If the beneficial owner is a company that directly or indirectly holds at least 10% of the capital of the company paying the dividends.
- If the interest is derived by a bank or any other financial institution (including an insurance company).
- If the beneficial owner is a company that owns at least 25% of the voting shares of the company paying the dividends during the period of six months immediately before the end of the accounting period for which the distribution of profit takes place.
- Interest arising in the contracting state and paid to the resident of the other contracting state is taxable in the other contracting state.
- Royalties arising in the contracting state and paid to the resident of the other contracting state are taxable in the other contracting state.
- If the beneficial owner is a company (other than a partnership) that directly holds at least 25% of the capital of the company paying the dividends.
- If the beneficial owner is a company (other than a partnership) that directly or indirectly holds at least 10% of the capital of the company paying the dividends.
- If the beneficial owner is a company (other than a partnership) that directly holds at least 20% of the capital of the company paying the dividends.
- If the interest is derived by any financial institution (including an insurance company).
- If the beneficial owner is a company that directly or indirectly controls at least 10% of the voting power of the company paying the dividends.
- If the beneficial owner is a company that owns at least 3% of the shares of the company paying the dividends.
- If the beneficial owner is a company that directly or indirectly holds at least 10% of the voting stock of the company paying the dividends.
- The ‘most favoured nation’ clause is applicable. The protocol to the DTAA limits the scope and rate of taxation to that specified in similar articles in DTAAs signed by Bangladesh with any other country.
- If the beneficial owner is a company that directly holds at least 3% of the capital of the company paying the dividends.
- If the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends throughout a 365-day period that includes the day of the payment of the dividend (for the purpose of computing that period, changes of ownership that would directly result from a corporate reorganisation, such as a merger or divisive reorganisation, of the company that holds the shares or pays the dividend shall not be considered).
- the beneficial owner is a company that directly holds at least 10% of the capital of the company paying the dividends throughout a 365-day period that includes the day of the payment of the dividend (for the purpose of computing that period, no account shall be taken of changes of ownership that would directly result from a corporate reorganisation, such as a merger or divisive reorganisation, of the company that holds the shares or that pays the dividend) and if the beneficial owner is a recognised pension fund of a contracting state that is generally exempt from taxes on income in that state.
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