Worldwide Tax Summaries

Bangladesh

Individual - Other issues

Last reviewed - 03 January 2025

Treatment of flow-through business entities

Partnership firms are taxed as individuals. The post tax income of a partnership firm is distributed proportionately among the partners.

Exchange controls

As per the Bangladesh Bank Guidelines, foreign nationals who are resident in Bangladesh and who have an income in Bangladesh are permitted to make monthly remittances to the country of their domicile out of their current savings up to 80% of their net income to cover their commitments abroad. The term ‘net income’, in this context, signifies the gross income of the applicant less all compulsory deductions such as income tax, provident fund (if any), house rent, and other deductions that are of a fixed nature.

Expatriate issues

Individuals who are not domiciled in Bangladesh or those domiciled but not expected to return must obtain specific certificates from the DCT before leaving the country. These certificates are listed below:

  • Tax Payment Certificate: This certifies that the individual has no tax liabilities under the relevant tax laws.
  • Exemption Certificate: This is issued if the individual intends to return to Bangladesh and the DCT is satisfied with this intention. It can cover single or multiple journeys within a specified period.

Temporary visas

Please find below a few common types of visas and the procedure to apply for the same:

Type of visa Application procedure Documents required
E Online The applicant will apply for this service through the web portal https://bidaquickserv.org by uploading the following documents on the respective link:
  • Copy of permission letter of branch, liaison, or representative office, or Memorandum and Articles of Association and Certificate of Incorporation in case of locally incorporated company.
  • Board resolution for employment of foreign national(s) mentioning the expatriate name, nationality, and passport number.
  • Photograph of the expatriate.
  • Copy of passport of the expatriate or employee with all arrival stamps and departure seals.
  • Appointment letter, transfer order, or service contract, or agreement of expatriates or investors.
  • Certificates of all academic qualifications and professional experience for the employee(s).
  • Copy of all the advertisements for recruitment of local nationals.
  • Description of the activities of the company.
  • Statement of all existing local and foreign manpower with designation, salary, allowances and bonuses, nationality, and date of the first appointment.
  • Encashment certificate of inward remittance of 50,000 United States dollars (USD) as initial establishment cost applicable to branch, liaison, or representative office, locally incorporated, joint venture, and 100% foreign ownership companies.
  • Up-to-date income tax clearance certificate of the organisation.
  • Letter of authorisation signed by the management of the company for submitting the application.
  • Additional information with proper document(s) (if any).

Note:

  • Documents have to be attested by the Chairman, CEO, Managing Director, Country Manager, or Chief Executive of the company or firm.
  • Documents must be submitted by the authorised person.
E1 Online The applicant will apply for this service through the web portal https://bidaquickserv.org by uploading the following documents on the respective link:
  • Copy of permission letter for branch, liaison, or representative office, or Memorandum and Article of Association and Certificate of Incorporation.
  • Board resolution for engaging the foreign national(s).
  • Photograph of the expatriate.
  • Copy of passport of the expatriate or employee with all arrival stamps and departure seals.
  • Proper service contract or agreement for seeking E1 visa recommendation.
  • Up-to-date income tax clearance certificate of the organisation.
  • Certificate of all academic qualifications and professional experience of the expatriate(s).
  • Letter of Credit copy of the respective service.
  • Letter of authorisation signed by the management of the company for submitting the application.
  • Additional information with proper document(s) (if any).
  • Document or certificate from vendor regarding the engagement of the expatriate in the task.

Note:

  • Documents have to be attested by the Chairman, CEO, Managing Director, Country Manager, or Chief Executive of the company or firm.
PI Online The applicant will apply for this service through the web portal https://bidaquickserv.org by uploading the following documents on the respective link:
  • Memorandum and Articles of Association and Certificate of Incorporation of the company duly signed by the shareholders.
  • Board resolution for engaging foreign national(s) in Bangladesh mentioning the name, nationality, and passport number. This should specify the sector where the investor actually invests.
  • Photograph of the investor.
  • Copy of passport of the investor with all arrival stamps and departure seals.
  • The specific activity of the company.
  • Statement of all existing local and foreign manpower with designation, salary, allowance(s) and bonus(s), nationality, and date of the first appointment.
  • Encashment certificate of inward remittance of minimum USD 50,000 as initial establishment cost for locally incorporated joint ventures and 100% foreign ownership companies.
  • Up-to-date income tax clearance certificate of the organisation.
  • Letter of authorisation signed by the management of the company for submitting the application.
  • Additional information with proper documents (if any).
Visa on arrival Online The applicant will apply for this service through the web portal https://bidaquickserv.org by uploading the following documents on the respective link:
  • Copy of registration of the industrial project with Bangladesh Investment Development Authority (BIDA), Branch Office / Liaison Office / Representative Office.
  • Copy of air ticket.
  • Copy of passport (whole used part).
  • A letter from the organisation for the visa on arrival mentioning the reason of the visit.
  • Additional information with proper documents (if any).

Note:

  • Submitted documents have to be attested by the Chairman, CEO, Managing Director, Country Manager, or Chief Executive Officer of the company or firm.
  • Documents must be submitted by the authorised person.

Work permits

A work permit is mandatory for foreign nationals for employment in any industrial, commercial, educational, sports, or government entity and private sector or for investors residing and operating businesses in Bangladesh. BIDA takes into consideration national security concerns while issuing work permits. Moreover, they discourage the issuance of work permits in favour of foreign nationals if they do not have specialised knowledge and hi-tech proficiency. The conditions stipulated in the work permit govern the remuneration break-up for individuals in Bangladesh as well as other allied requirements, i.e. funding of the assignee’s salary, enlistment with Bangladesh Bank, etc. Prior to making an application for the issuance of a work permit, the entity making the application must specify the remuneration details of the assignee, i.e. break-up of salary, amount to be paid in Bangladesh, amount of salary to be paid in the assignee’s home country, etc. Any deviation from the work permit is not desirable and may be required to be explained and justified with the regulatory and tax authorities.

BIDA generally issues work permits to personnel expected to stay for at least six months in Bangladesh. In case the individual is required to return prior to the expiry of the stipulated tenure, an application has to be made out to BIDA for cancellation of the work permit.

Tax equalisation

Whether tax would be borne by the company or the individual will depend upon the terms of employment. The domestic tax laws do not contain any specific provision in this regard.

Bangladesh contacts

Bangladesh contacts
Bangladesh News
Sushmita Basu

Member of the Board of Directors / Tax and Regulatory Practice Leader, PwC Bangladesh

+91 98 3005 1065

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