Tax Rates for Income Tax in Bangladesh
In Bangladesh, income tax rates are structured to be progressive for individuals and fixed for corporations. The rates and brackets can be subject to changes based on annual budgets and fiscal policies. Here’s a detailed overview of the income tax rates in Bangladesh for individuals and corporations:
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1. Tax Rates for Individual Taxpayers
For the Financial Year 2023-24
Additional Tax Rates for Specific Categories
Senior Citizens (Aged 65 and above)
Senior Citizens (Aged 75 and above)
2. Tax Rates for Corporate Taxpayers
For the Financial Year 2023-24
Newly Established Industries in Specific Sectors
3. Tax on Specific Income Sources
Unlisted Securities/Other Assets
There are various tax reliefs and exemptions available, including
1. Tax Rates for Individual Taxpayers:
The income tax rates for individual taxpayers are progressive, meaning that higher income levels are taxed at higher rates. These rates are updated annually in the national budget. Here’s a typical structure based on recent tax slabs:
For the Financial Year 2023-24:
- Income up to BDT 3,00,000: 0% (Tax-free for individuals below this threshold)
- Income from BDT 3,00,001 to BDT 6,00,000: 10%
- Income from BDT 6,00,001 to BDT 12,00,000: 15%
- Income from BDT 12,00,001 to BDT 30,00,000: 20%
- Income above BDT 30,00,000: 25%
Note: These thresholds and rates are subject to change, so it is essential to consult the latest budget or National Board of Revenue (NBR) notifications for the current rates.
Additional Tax Rates for Specific Categories:
Senior Citizens (Aged 65 and above):
There might be different or more favorable tax slabs for senior citizens. For example, the tax-free threshold could be higher for them.
Senior Citizens (Aged 75 and above):
Specific exemptions or rates may apply.
2. Tax Rates for Corporate Taxpayers:
Corporate tax rates apply to the taxable income of companies, and these rates are generally fixed. The rates can vary based on the type of company and its activities.
For the Financial Year 2023-24:
- Publicly Traded Companies: 22.5%
- Non-Publicly Traded Companies: 32.5%
- Banks, Insurance Companies, and Financial Institutions: 37.5%
Newly Established Industries in Specific Sectors:
Often receive a reduced rate or tax holiday for a certain period as an incentive for investment.
3. Tax on Specific Income Sources:
Capital Gains:
Listed Securities:
Typically taxed at a reduced rate, such as 15% for long-term capital gains.
Unlisted Securities/Other Assets:
Capital gains are generally taxed at regular income tax rates, which can be up to 25% depending on the income level.
Rental Income:
Individuals:
Taxed as part of total income based on progressive tax slabs.
Companies:
Taxed at corporate rates.
Dividend Income:
Listed Shares:
Often subject to tax at a specific rate, which may differ from regular income tax rates.
4. Tax Reliefs and Exemptions:
There are various tax reliefs and exemptions available, including:
Investment Tax Credit:
Taxpayers can receive credits for investments in specific areas, like infrastructure or technology.
Charitable Donations:
Contributions to recognized charities can sometimes be deducted.
Retirement Savings:
Contributions to retirement savings plans or pension funds may offer tax benefits.
5. Tax Filing and Payment:
Filing:
Individual and corporate taxpayers must file annual tax returns declaring their income and tax liability.
Advance Tax:
Taxpayers may need to make advance tax payments based on estimated income and tax liability.
Key Points to Remember:
1. Stay Updated: Tax rates and rules can change with each fiscal year. Always check the latest budget announcements or NBR guidelines.
2. Consult a Professional: For accurate tax planning and compliance, particularly for complex financial situations, consult a tax advisor or accountant.
Note: For the most current tax rates and detailed information, refer to the National Board of Revenue (NBR) of Bangladesh or consult with a tax professional.
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