Bangladesh

Individual - Significant developments

Last reviewed - 18 December 2025

Adjustment of excess or deficit from earlier years will not be considered when calculating withholding tax (WHT) on income from employment for the current year.
The income-tax slab rates have been revised for a resident individual, with the highest slab rate maintained at 30% for the AY 2026-27 and AY 2027-28. The highest slab rate increased to 35% for AY 2028-29, AY 2029-30 and AY 2030-31 for a resident individual.
Return processing in case of refund arising out of income from employment, financial assets and agriculture, should be completed within 120 days from return filing date. Thereafter, such refund to be electronically transferred to the bank account.

For investment tax rebate, while the ceiling for specified investments has been removed, the qualifying amount and the maximum rebate has been reduced.
Medical expenses reimbursed under group insurance policies are now exempted from tax.
Premature encashment of the government securities, mutual funds, ETFs and certain specified instruments would trigger an additional tax liability in the year of withdrawal.