Tax & International Structuring in Bangladesh

Essentials guide · Partly source-checked42% of statements checked against a source8 checked against an official source14 checked against a secondary sourceChecked 2026-10-196 held back until checked against an official source9 topics include AI-written statements, not source-checkedNot yet professionally reviewed

• Income tax is governed by the Income Tax Act 2023, which replaced the Income Tax Ordinance 1984 and is administered by the National Board of Revenue (NBR).

  National Board of Revenue (NBR) · checked 2026-10-19

• Non-listed companies pay corporate income tax at 27.5 percent, or 25 percent if all transactions are made through bank transfer; listed companies pay 20 to 25 percent depending on their public float, banks, insurers and financial institutions pay 37.5 or 40 percent, and tobacco companies and mobile phone operators pay 45 percent.

  Rates stated for assessment years 2026-27 to 2030-31. A mobile operator that converts to a listed company through an IPO of at least 10 percent pays 40 percent. Merchant banks are excluded from the listed financial institution rate. Rates are set by the annual Finance Act.PwC Worldwide Tax Summaries · checked 2026-10-19

• VAT is charged at a standard rate of 15 percent under the Value Added Tax and Supplementary Duty Act 2012, with reduced rates of 1.5 to 10 percent for goods and services in its Second Schedule and supplementary duty on items in its Third Schedule.

  Supplementary duty ranges from 10 to 67 percent (500 percent in certain cases) and is charged only at the first stage of supply.PwC Worldwide Tax Summaries · checked 2026-10-19

• The income year for most companies runs from 1 July to 30 June, while banks, insurers and certain financial institutions use the calendar year.

  A subsidiary or holding company of a foreign parent may be permitted a different financial year to align with the parent.PwC Worldwide Tax Summaries · checked 2026-10-19

• Payments to non-residents, including dividends, interest, royalties and fees, are subject to withholding tax at rates set by the income tax law, which may be reduced under a tax treaty.

  PwC lists non-treaty rates for non-resident companies of 20 percent on dividends, 10 percent on interest, 20 percent on royalties and 10 percent on technical services, but its own treaty table shows higher non-treaty rates for interest and technical fees, so rates should be confirmed. The NBR may certify payment without deduction or at a reduced rate.PwC Worldwide Tax Summaries · checked 2026-10-19

• Bangladesh has transfer pricing rules for international transactions between associated enterprises, with documentation and reporting duties.

  Every taxpayer with international transactions files a statement of them with the return; where such transactions exceed BDT 30 million in aggregate, transfer pricing documentation and an independent accountant's report are required.PwC Worldwide Tax Summaries · checked 2026-10-19

• The Bangladesh Export Processing Zones Authority (BEPZA) administers export processing zones, where foreign-owned enterprises can operate with incentives such as tax holidays and duty-free import of capital machinery and raw materials.

  Incentives depend on zone and enterprise category.AI-written, not source-checked

• Economic zones are established under the Bangladesh Economic Zones Act 2010 and administered by the Bangladesh Economic Zones Authority (BEZA).

  AI-written, not source-checked

Read the full guide: Tax, accounting and reporting · Licensing, incentives and sector rules