What is the policy for personal income tax in Bangladesh?
Oct 12, 2021
Bangladesh adopts a progressive taxation rate on personal income (for resident with presence in Bangladesh: i) for 182 days or more in one fiscal year or ii) for 90 days or more in one fiscal year iii) 365 days or more in preceding 4 years), which ranges from0% to 25% (surcharge is payable by wealthy individuals). Personal income tax rate is to be determined by the Finance Act every fiscal year. Following is the existing rates of personal income tax:
First BDT 300,000 = Nil Next BDT 100,000 = 5% Next BDT 300,000 = 10% Next BDT 400,000 = 15% Next BDT 500,000 = 20% On balance = 25%Individuals can be entitled to investment tax rebates if they make eligible investments.Foreign nationals can also take benefits of double taxation avoidance treaties.
The budget FY 2021-2022 has proposed to keep existing rate for individual taxpayers unchanged. However, a special provision for the third gender community is introduced and a proposal to fix the tax-free ceiling of this community at Taka 350,000/.
