Bangladesh

Social security contributions

Provident fund and gratuity are the major social security contributions. Social security is broadly governed by the Bangladesh Labor Act, 2006.

An establishment in the private sector will be required to constitute a provident fund for the benefit of its workers if at least three-fourths of the total number of workers employed therein so demand to the employer by an application in writing.

Employees (including foreign nationals) working with an establishment in Bangladesh to which the social security regulations apply are liable to contribute towards the provident fund at the fixed rate of 7% to 8% of salary. The employer is required to make a matching contribution and deposit both the employer’s and employee’s contributions to the provident fund of the employee every month.

Gratuity is payable to workers on the termination of employment, in addition to any compensation or wages or allowance payable on termination of employment.

Capital gains taxes

Please refer to Capital gains in the Income determination section.

Consumption taxes

There is no consumption tax or value-added tax (VAT) applicable on individual consumer since the supplier is liable to pay VAT in all cases.

Net wealth or net worth taxes

Please refer to Surcharge on total income tax in the Taxes on personal income section for details on the surcharge based on net wealth.

Inheritance, estate, and gift taxes

There is no inheritance tax in Bangladesh.

Property taxes

Property tax is levied by the governing local authority of the jurisdiction in which the property is located. The rate of tax levied varies from city to city in Bangladesh and is generally related to the prevailing market prices for property in each locality.

Luxury and excise taxes

There are no luxury and excise taxes under the Income Tax Act, 2023.

Environmental taxes

The Travel Tax Act, 2003 imposes a tax on passengers for travel within Bangladesh or from Bangladesh by air, land, or sea. The tax is collected by the person or organisation responsible for issuing the ticket or boarding pass and is deposited to the government treasury within the prescribed time.

The tax rate varies depending on the destination, mode of transport, and age.

There are other taxes related to environmental issues in Bangladesh as well (e.g. tax at the time of registration of vehicle, which is termed ‘environmental surcharge’).

Local non-income taxes

There are no local non-income taxes in Bangladesh other than covered in this summary.