Bangladesh Corporate Income Tax Rate

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    Learn About Corporate Income Tax Rate With NetworkBD

    NetworkBD is here to know you about Bangladesh Corporate Income Tax Rate. Bangladesh is blessed with a developing economy as well as its strategic position as a leading financial center. When it comes to the vibrant business environment in Bangladesh, its corporate tax rates in Bangladesh often make the list. In addition to various tax incentives in Bangladesh, effective tax rates for Bangladeshi companies, including reduction of corporate income tax rates in Bangladesh, have contributed to attracting foreign investment to the country. This guide provides comprehensive information about Company Bangladesh.
    Bangladesh Corporate Income Tax Rate

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    Our Corporate Income Tax Rate At A Glance
    In Bangladesh, it has a single level regional based flat-rate corporate income tax system. There is no dual tax for stakeholders under the single-tier corporate income tax system no company imposes more Bangladeshi tax on dividends paid to its shareholders.
    In addition, there is no tax on capital gains in Bangladesh (gains on sale of fixed assets, gains in foreign exchange on capital transactions and hence some examples of gains in capital). Now, let’s dive in to learn more about attractive tax rates.

    Simplified Corporate Income Tax & General Tax Exemptions For You

    Corporate tax rate
    Year of Assessment Since 2010, a company in Bangladesh has been taxed at the rate of 22% on its chargeable income regardless of whether it is a local or a foreign company.

    General tax incentives
    Although the corporate tax rate is equivalent to 17%, there are tax-exempt schemes for companies that help reduce the overall effective corporate tax rate.

    Get Tax Exemption Scheme for New Start-up Companies

    Corporate Income Tax Rate
    Any newly incorporated company that meets the conditions (as stated below) will have the opportunity to enjoy tax exemptions for new start-up companies for the first 3 years of the tax assessment. Eligibility conditions are as follows:
    1. Bangladesh will be included
    2. Become a tax resident of Bangladesh
    3. There are no more than 20 shareholders, of which at least one shareholder is a common shareholder, holding at least 10% of the common shares.
    Tax exemptions are open to all new companies except two
    1. A company whose main activity is investment holding; And
    2. A company that develops property for sale, for investment, or for both investment and sale.

    FAQs For Corporate Income Tax Rate

    How is taxable corporate income calculated?

     Taxable income represents only the taxable portion of a company’s profits. Divide the company’s total tax liability by the statutory tax rate listed on the government’s tax table to calculate taxable income, if it is not available separately. Divide the company’s income tax liability by its taxable income.

    How does a corporation reduce taxable income?

     There are various ways for corporations to avoid paying taxes or to earn tax subsidies. 1. Foreign Subsidiary. Although corporate tax rates have been reduced, companies are still using tax evasion to save money. 2. Underestimation. 3. Stock options. 4. Industry-specific options.

    How are corporations taxed?

     Taxes are paid to the corporation when a corporation’s profits are earned, and then tax is paid on the shareholders when it is distributed as dividends. This creates a double tax. The corporation does not receive tax deduction when it distributes dividends to shareholders. The shareholders cannot deduct any loss from the corporation.

    What is the difference between income tax and corporate tax?

    Income tax is levied on income, it is paid as a percentage of earnings. Only traders and partnership owners pay income tax on their business profits. Corporation tax is a charge on a company’s profits. This type of tax is applicable only for private and public limited companies.

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