Bangladesh Corporate Tax Guide

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    A Leading Corporate Tax Guide In Bangladesh

    Like many other jurisdictions, Bangladesh has its own corporate tax guide  system and the company is given the Bangladesh Company Tax Number. In Bangladesh, the corporate tax system is a one-tier corporate tax system, which means there is no double-taxation for stakeholders, and a Bangladeshi company pays the final tax on its taxable income.
    The corporate income tax rate has been fixed at a flat rate of 22% since 2010. The company is calculated based on its taxable income, for example taxable revenue less allowable expenses and other allowances. There is no tax on capital gains in Bangladesh.

    Effective Company Tax Guide For New Entities

    Start-up Tax Exemption scheme for Bangladesh Companies
    Eligibility conditions include:
    i. I am not more than 20 individual shareholders
    ii. Must have at least 10% of the shares issued by an individual (in case of corporate shareholders)
    iii. Property and investment holding companies are not eligible

    Learn About Partial Tax Exemption With Us

    Partial tax exemption is open to all other companies who are not eligible under this scheme.

    Company Tax Consultation Services For income Tax (CIT) Rebate

    All companies (including Bangladesh Company Tax Number) are eligible for corporate income tax exemption to help businesses cope with rising costs, address economic uncertainty and continue to restructure.

    Exemption Clause For Foreign Income of Companies

    Income from foreign sources sent by Bangladesh is taxable in Bangladesh. However, companies may benefit from income-exempt schemes from foreign sources as described in Sections 13 to 13 of the Income-tax Act of Bangladesh.
    Foreign income category:

    i.I am a foreign-based dividend a foreign-based dividend, if it is paid by a non-Bangladesh tax residential company.ii. Foreign Branch Profit – Any profit produced by a Bangladesh company registered as a branch in a foreign country. This does not apply to non-trade or non-business income of foreign branches.

    iii.Service income from foreign sources – Any income generated by a resident taxpayer for services provided through a specific workplace in a foreign country.

    Double Taxation Consultation With Network BD

    Taxes in Bangladesh A double tax will be levied on the income of a foreign company when it is levied abroad and when the income is sent to Bangladesh. However, the company may claim credit for tax paid abroad against the Bangladesh tax payable on the same income under the Foreign Tax Credit Scheme by NBR.

    FAQ For Bangladesh Corporate Tax Guidance

    What is the corporate tax rate in Bangladesh?

    25%, It has been proposed to reduce the publicly traded company tax rate from 25% to 22.5%. Tax Update 2021-2022 Bangladesh.

    What is the purpose of corporate tax?

     Paying corporate taxes can be more beneficial for business owners than paying additional personal income taxes. Corporate tax returns deduct fringe benefits, including medical insurance for families as well as retirement plans and tax-delayed trusts. It is also easy for a corporation to incur losses.

    Who has to pay taxes in Bangladesh?

    The proposed budget for FY 2020-21 has increased the tax-free income limit for individual taxpayers. The new budget has set a tax-free income limit of Tk 3 lakh. Those whose annual income is three lakh rupees do not have to pay any tax.

    How many types of corporate tax?

    For the purpose of calculating the corporate tax rate in Bangladesh, the Income Tax Act divides the corporate into two types – domestic companies and foreign companies. Economic transactions take place within the geographical boundaries of Bangladesh.

    Spend Time On Your Business, Not in Tax Complexities.