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 (NRI) who is a Bangladeshi citizen for financial year (FY) 2023/24

Resident individual or NRI who is a Bangladeshi citizen for FY 2024/25

Note:

• The basic exemption limit for women and senior citizens aged 65 years or above is BDT 400,000.
• The basic exemption limit for taxpayers with disabilities is BDT 475,000.
• The basic exemption limit for war wounded gazette freedom fighters is BDT 500,000.
• The basic exemption limit for third-gender taxpayers is BDT 475,000.
• The basic exemption limit for the parents or legal guardian of a person with disability increases by an additional BDT 50,000.

NRIs who are not Bangladeshi citizens

NRIs who are not Bangladeshi citizens are taxable at the maximum rate (i.e. 30%).

Surcharge on total income tax

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

Minimum tax regime

A three-way comparison of regular tax on profits, withholding tax (WHT) under certain sections (interest on savings deposit, interest on fixed deposit, etc.), and tax on gross receipts (0.25% on gross receipts) must be done. The higher of the three is considered as the final tax liability for an individual having gross receipts of more than BDT 30 million.

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