Bangladesh
Southern Asia • UTC+6 • Asia/DhakaBangladesh Income Tax System
Bangladesh employs a progressive income tax system with rates ranging from 10% to 30%. Corporate tax rates are competitive, and VAT is set at a standard rate of 15%.
Income Tax
10%–30%
Progressive rates based on income
Corporate Tax
27.5%
Standard corporate tax rate
VAT / GST
15%
Standard VAT rate
Nomad Visa
Not Available
No dedicated program
Tax System Overview
Bangladesh's tax system is progressive, taxing residents on worldwide income and non-residents on Bangladesh-source income. The system includes personal income tax, corporate tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Bangladesh-source income.
Tax Year
July 1 – June 30
Income Tax Bands
Bangladesh's progressive income tax bands based on annual taxable income in BDT (2025).
Tax Treaty
Double Taxation Agreements help avoid double taxation on income earned in multiple countries.
United Kingdom
Treaty ActiveThe treaty between Bangladesh and the UK prevents double taxation on income, reduces withholding taxes, and clarifies residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
India
Agreement ActiveThe agreement between Bangladesh and India prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Bangladesh–India workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
27.5% standard rate for most companies
VAT Registration
Mandatory if annual turnover exceeds BDT 3 million.
Freelancer Rules
Freelancers are taxed under the individual income tax regime.
Crypto Policy
Cryptocurrency transactions are not yet regulated in Bangladesh.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No capital gains tax on foreign assets
- No wealth tax
Filing Roadmap
Obtain a Tax Identification Number (TIN)
Register for a TIN at the National Board of Revenue (NBR) office or online.
Gather Income Documents
Collect all necessary income statements, including salary slips and bank statements.
Complete Tax Return Form
Fill out the appropriate tax return form, available on the NBR website.
Submit Tax Return
File your completed tax return by the September 30 deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the filing deadline to avoid penalties.