# Taxation in Bangladesh

Part of a series on :
Taxation :
An aspect of fiscal policy :
Policies
Economic justice
Government revenue
Property tax equalization
Tax revenue
Non-tax revenue
Tax law
Tax bracket
Flat tax
Tax threshold
Taxation as theft
Tax shift
Tax cut
Tax advantage
Tax incentive
Tax reform
Tax harmonization
Tax competition
Double taxation
Representation
Medical savings account :
Economics
General Theory
Price effect
Excess burden
Tax incidence
Laffer curve
Optimal tax
Fiscal illusion
Theories
Optimal capital income taxation
Distribution of Tax
Tax rate
Flat
Progressive
Regressive
Proportional :
Collection
Revenue service
Revenue stamp
Tax assessment
Taxable income
Tax lien
Tax refund
Tax shield
Tax residence
Tax preparation
Tax protester
Tax investigation
Tax collector
Tax withholding
Private tax collection :
Noncompliance
Legal tax avoidance
Base erosion and profit shifting (BEPS)
Double Irish
Single Malt
CAIA
Dutch Sandwich
Tax credit
Tax deduction
Tax exemption
Taxpayer groups
Tax holiday
Tax inversion
Tax farming
Repatriation tax avoidance
Tax patent
Tax shelter
Illegal tax evasion
Tax amnesty
Black market
Debtors' prison
Tax exile
Smuggling
Tax resistance
Transfer mispricing
Unreported employment
Locations
Tax havens
Corporate havens
Offshore financial centres (OFCs)
Offshore magic circle
Conduit and sink OFCs
Financial centres
Financial Secrecy Index
Major examples
Ireland as a tax haven
Ireland v. Commission
Leprechaun economics
Liechtenstein tax affair
Luxembourg Leaks
Offshore Leaks
Paradise Papers
Panama Papers
Swiss Leaks
United States as a tax haven
Panama as a tax haven :
Types
Direct
Indirect
Per unit
Ad valorem
Aviation
Airport improvement
Landing
Solidarity
Capital gains
Expatriation
Consumption
Departure
Hotel
Sales
Stamp
Television
Tourist
Value-added
Dividend
Environmental tax
Carbon
Eco-tariff
Landfill
Natural resources consumption
Severance
Steering
Stumpage
Excise
Alcohol
Cigarette
Fat
Meat
Sin
Sugary drink
Tobacco
General
Georgist
Gift
Gross receipts
Hypothecated
Income
Inheritance (estate)
Land value
Luxury
Payroll
Pigouvian
Property
Resource rent
Single
Surtax
Turnover
Use
User charge/fee
Congestion
Fuel
Road/GNSS
Toll
Vehicle miles traveled
Corporate profit
Excess profits
Windfall
Negative (income)
Wealth :
International
Financial transaction tax
ATTAC
Currency transaction tax
European Union Common Consolidated Corporate Tax Base (CCCTB)
Global minimum corporate tax rate
Robin Hood tax
Tobin tax
Spahn tax
Tax equalization
Tax treaty
Exchange of Information
Permanent establishment
Transfer pricing
European Union FTT
Foreign revenue rule :
Trade
Custom
Duty
Tariff
Import
Export
Tariff war
Free trade
Free-trade zone
Trade agreement
ATA Carnet :
Research
Academic
Mihir A. Desai
Dhammika Dharmapala
James R. Hines Jr.
Ronen Palan
Joel Slemrod
Gabriel Zucman
Advocacy groups
Institute on Taxation and Economic Policy (ITEP)
Oxfam (UK)
Tax Foundation (US)
Tax Justice Network (TJN)
Tax Policy Center (US) :
Religious
Church tax
Eight per thousand
Teind
Tithe
Fiscus Judaicus
Leibzoll
Temple tax
Tolerance tax
Jizya
Kharaj
Khums
Nisab
Zakat :
By country
All Countries
List of countries by tax rates
Tax revenue to GDP ratio
Tax rates in Europe
Individual Countries
Albania
Algeria
Argentina
Armenia
Australia
Azerbaijan
Bangladesh
Bhutan
Brazil
Bulgaria
BVI
Canada
China
Colombia
Croatia
Denmark
Finland
France
Germany
Greece
Hong Kong
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Kazakhstan
Lithuania
Malta
Morocco
Namibia
Netherlands
New Zealand
Norway
Pakistan
Palestine
Peru
Philippines
Poland
Portugal
Russia
South Africa
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
United Arab Emirates
United Kingdom
United States
Uruguay :
Business portal
Money portal :
vte :
In Bangladesh, the principal taxes are customs duties, value added tax (VAT), supplementary duty, income tax and corporation tax.

## Income tax

The history of income tax in Bangladesh dates back to 1860 when it was introduced by the British Raj under the title Income Tax Act. Since then various changes have taken place.
FY 2023-2024 :
| Rate | Tax bracket |
| 0% | Up to ৳3,50,000 |
| 5% | ৳3,50,000 to ৳4,50,000 |
| 10% | ৳4,50,000 to ৳7,50,000 |
| 15% | ৳7,50,000 to ৳11,50,000 |
| 20% | ৳11,50,000 to 16,50,000 |
| 25% | Above ৳16,50,000 |

## Value added tax

Value added tax (VAT) in Bangladesh was introduced in 1991. The standard rate of VAT is 15% levied on transaction value of most of the imports and supplies of goods and services.

## Corporate tax rate

The tax law imposes income tax at 25 percent on listed entities and 32.5 percent for non-listed entities. Corporate tax rate changes announced this year include:
* an additional surcharge of 2.5 percent on income of companies in the tobacco sector
* a reduction of the corporate income tax rate for companies in the readymade garments sector to 15 percent (from 20 percent)
* a further 1 percent rate reduction (to 14 percent) for companies in the readymade garments sector that have an internationally recognized green building certificate.
Certain companies remain taxed at different rates. For example:
* Banking companies, insurance companies and non-banking financial institutions are taxed at 40 percent if they are listed and 42.5 percent if non-listed.
* Cigarette manufacturers and mobile phone operator are taxed at 45 percent (before the additional surcharge on cigarette manufacturers noted above)
* Companies engaged in production and export of knitwear and woven garments enjoy a reduced corporate tax rates of 20 percent, and companies that produce or export jute products are taxed at 10 percent.
Generally, a company's export earnings are 50 percent exempt.
For companies, the tax day (i.e. tax return due date) is now the 15th day of seventh month following the end of income year; alternatively, where that fifteenth day is before 15 September, the tax day is 15 September of the year following the end of the income year.

## Tax holidays

Finance Bill 2017 makes no changes to the current tax legislation providing tax holidays for:
* industries established in export processing zones (5 to 7 years, depending on location)
* investment in economic zones (10 years) and development of economic zones (12 years)
* industrial undertakings (5 to 10 years, depending on location)
* physical infrastructure (10 years)
* coal-based private power generation companies (15 years)
* non-coal-based power generation companies (10 years).
The tax holiday (until 2024) for companies engaged in "information technology enabled services" also remains intact, although Finance Bill 2017 includes specifically defines these services.

## National Board of Revenue

The National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh. Administratively, it is the attached department to the Internal Resources Division (IRD) of the Ministry of Finance (MoF). MoF has 4 Divisions, namely, the Finance Division the Internal Resources Division (IRD), the Banking Division and the Economic Relations Division (ERD). Each division is headed by a Secretary to the Government. Secretary, IRD is the ex-officeo Chairman of NBR. NBR is responsible for the formulation and continuous re-appraisal of tax-policies and tax-laws in Bangladesh.
Negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration are also NBR's responsibilities. The main responsibility of NBR is to mobilize domestic resources through the collection of import duties and taxes, VAT and income tax for the government. Side by side with collection of taxes, facilitation of international trade through quick clearance of import and export cargoes has also emerged as a key role of NBR. Other responsibilities include administration of matters related to taxes, duties and other revenue related fees/charges and prevention of smuggling. Under the overall control of IRD, NBR administers the excise, VAT, customs and income-tax services consisting of 3434 officers of various grades and 10195 supporting staff positions.