Bangladesh taxes residents on worldwide income and non-residents on Bangladesh-source income only. Bangladesh operates a self-assessment system, with the National Board of Revenue (NBR) conducting post-filing review and audit.
The Bangladeshi tax year (income year) generally runs 1 July to 30 June. The individual filing deadline is generally the following 30 November, per the Finance Act as most recently amended.
27.5% standard rate for non-listed (private) companies - the general baseline applying to most businesses. Publicly listed companies receive a preferential rate of 22.5-25% depending on listing structure. Companies maintaining 100% bank-transfer compliance on all transactions may qualify for a reduced 25% rate even if non-listed. Special sector rates apply: banks, insurance, and non-bank financial institutions pay 40% (37.5-42.5% depending on listing status), tobacco companies pay 45%, mobile phone companies pay 40%, and export-oriented garment manufacturers benefit from a reduced 12% rate. These rates are fixed through assessment year 2030-31 under a five-year corporate tax roadmap announced in the 2026 budget.
The headline personal income tax (PIT) rate is 30%.
The standard VAT/GST (or equivalent consumption tax) rate is 15%.
An individual is a Bangladeshi tax resident if present in Bangladesh for 182 days or more (continuously or in aggregate) in the relevant income year, or for 90 days or more in the income year if also present 365 days or more in aggregate over the preceding four years. A company is resident if registered in Bangladesh or its management and control is exercised there. Residents are taxed on worldwide income; non-residents only on Bangladesh-source income (received, accrued, or deemed to accrue in Bangladesh).
A non-Bangladeshi entity has a Bangladesh permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Bangladesh on the entity's behalf, following the OECD Model Treaty definition as applied under Bangladeshi domestic law and any applicable tax treaty.
Bangladesh has no Controlled Foreign Company taxation rules.
Bangladesh has no specific thin capitalization regime. The Bangladesh Investment Development Authority has recommended, as a regulatory guideline for foreign loans, that the debt-to-equity ratio in a Bangladeshi company not exceed 70:30 - a recommendation rather than a binding statutory rule.
Bangladesh does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Bangladesh does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists in Bangladesh requiring residents to separately disclose foreign accounts.
Bangladesh does not have a Controlled Foreign Company regime and does not provide a broad participation exemption for foreign dividends in the European sense; foreign dividends received by a Bangladeshi company are generally taxable, with relief from double taxation available through Bangladesh's foreign tax credit system.
Bangladesh has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Bangladesh, capped at the Bangladeshi tax otherwise due on that income.
Per the Bangladesh Investment Development Authority (BIDA), a government agency, Bangladesh has Double Taxation Treaties with 36 countries, including the US (2007), UK (1980), Canada (1985), India (1993, updated 2013), France (1989), the Netherlands (1994), Singapore (1982), Switzerland (2010), Mauritius (2012), Norway (2006), and Malaysia (1990). A Tax Residency Certificate from the National Board of Revenue (NBR) is required to claim treaty benefits.