Bangladesh

Taxation of individuals in Bangladesh is primarily based on their residential status in the relevant tax year. The residential status of individuals is determined independently for each tax year and is ascertained on the basis of their physical presence in Bangladesh during the relevant tax year and past years. See the Residence section for more information.

Under Bangladesh tax laws, the scope of taxation differs as per the residential status of an individual.

• For a resident person, income is taxable in Bangladesh if it is accrued or arisen or deemed to be accrued or arisen in Bangladesh. Income is taxable if it is received or deemed to be received in Bangladesh. Income from outside Bangladesh that is accrued, arisen, or received by or on behalf of the person in the same year is also taxable.
• For a non-resident person, income is taxable if it is accrued or arisen or deemed to be accrued or arisen in Bangladesh or received or deemed to be received in Bangladesh during the year.

Personal income tax rates

Resident individual or non-resident Individual who is a Bangladeshi citizen for financial year (FY) 2025-26 and FY 2026-27

Note:

• The basic exemption limit for general taxpayers is BDT 400,000.
• The basic exemption limit for women and senior citizens aged 65 years or older is BDT 450,000.
• The basic exemption limit for persons with physical challenges is BDT 525,000.
• The basic exemption limit for war wounded gazette freedom fighters is BDT 550,000.
• The basic exemption limit for third-gender taxpayers is BDT 525,000.
• The basic exemption limit for the parent or legal guardian of a physically challenged person increases by an additional BDT 50,000.

Resident individual or nonresident Individual who is a Bangladeshi citizen for FY 2027-28 and 2028-29

• The basic exemption limit for general taxpayers is BDT 450,000.
• The basic exemption limit for women and senior citizens aged 65 years or older is BDT 500,000.
• The basic exemption limit for persons with physical challenges is BDT 575,000.
• The basic exemption limit for freedom fighters who are war-wounded and gazetted and wounded July fighters who are gazetted is BDT 600,000.
• The basic exemption limit for third-gender taxpayers is BDT 575,000.
• The basic exemption limit for the parent or legal guardian of a physically challenged person increases by an additional BDT 50,000.

Resident individual or a non-resident individual who is a Bangladeshi citizen for FY 2029-30

• The basic exemption limit for general taxpayers is BDT 500,000.
• The basic exemption limit for women and senior citizens aged 65 years or older is BDT 550,000.
• The basic exemption limit for persons with physical challenges is BDT 625,000.
• The basic exemption limit for freedom fighters who are war-wounded and gazetted and wounded July fighters who are gazetted is BDT 650,000.
• The basic exemption limit for third-gender taxpayers is BDT 625,000.

The basic exemption limit for the parent or legal guardian of a physically challenged person increases by an additional BDT 50,000.

Non-resident individuals who are not Bangladeshi citizens

Non-resident taxpayer in Bangladesh (excluding non-resident Bangladeshi citizen) are taxable at the maximum rate (i.e. 30%).

Surcharge on total income tax

A surcharge is payable on the regular tax amount by the taxpayer if one’s net worth exceeds the prescribed threshold. The rates of surcharge are as follows:

Turnover tax regime

Please refer to Turnover tax section under corporate tax.

Withholding tax on profit earned from sanchayapatra, capital gains earned on compensation against acquisition of property and capital gains earned on transfer of property no longer will be regarded as final tax.

Minimum tax to be applied in case total income exceeds tax-free threshold

If the total income exceeds the tax-free limit, the minimum amount of tax will be BDT 5,000. However, in the case of new taxpayers, the minimum amount of tax will be BDT 1,000.

Withholding tax requirement

Individuals having business turnover above BDT 100 million will be considered as specified person for the purposes of withholding tax.

Collection of tax will be applied at the rate of 10% on membership fees paid to registered club.