Business Advocacy

Governments collect income tax from businesses and individuals in their area. This tax money is then used to support public services, cover government expenses, and provide goods for everyone in the community.

According to the NBR, you need to tell them about your income if you make more than a certain amount. Normally, it’s BDT 350,000, but for women and seniors over 65, it’s BDT 400,000. If someone was a freedom fighter hurt in a war, they don’t pay taxes until they make BDT 500,000.

If your earnings are not more than a certain amount (for Male, BDT 300,000, and Female, BDT 350,000), then you can submit a zero-income tax return.

Individual taxpayers’ income tax rates and tax rates remain unchanged from 2020-2021.

  • Existing Tax Step   –   Existing Tax rate  
  1. Up to Tk. 3 Lakhs.    –         0
  2. Up to Tk. 3 Lakhs.    –         5%
  3. On next Tk. 3 Lakhs –        10%
  4. On next Tk. 4 Lakhs –        15%
  5. The next Tk. 5 lakhs-        20%
  6. The rest of the money-   25%

If you’re not living in Bangladesh permanently and don’t have a fixed place here, you don’t have to do income tax paperwork. But if you’re a non-resident, except for Bangladeshi non-residents, you have to pay a 30% tax on all the money you earn in Bangladesh, no matter where you get paid.

In Bangladesh, individuals pay income tax from three primary sources: they earn income (such as salary and wages), receive passive or unearned income (from properties and investments), and gain portfolio or investment income (including interest, dividends, and capital gains.

The minimum tax rate in Bangladesh for individual taxpayers is 0.25% of their business turnover. Additionally, they can benefit from an investment credit, set at a flat 15% of the eligible amount, with a calculation ceiling of 20% of their total income.

In Bangladesh, your income tax rate depends on how much you earn. Here’s a breakdown: no tax up to BDT 300,000, 5% for the next BDT 100,000, 10% for the next BDT 300,000, 15% for the next BDT 400,000, 20% for the next BDT 500,000, and 25% for anything beyond that. If you make eligible investments, you might get some of that tax back. So, your total income from things like salary and investments determines how much tax you pay.

In Bangladesh, tax season runs from July 1 to November 30. You must file your returns within this period. For the latest fiscal year instructions, check the official National Board of Revenue (NBR) website. Filing on time is crucial to comply with tax regulations and avoid penalties, like ensuring your income tax return is filed on time.

To submit your income tax return in Bangladesh, follow these steps: 

Step 1: Visit the official NBR website or go to www.etaxnbr.gov.bd.

Step 2: Click on eReturn and log in with your TIN, password, and captcha.

Step 3: Once logged in, proceed to submit your income tax return. 

This ensures a smooth and efficient filing process.

E-TIN, or Electronic Taxpayer’s Identification Number, is issued by the National Board of Revenue (NBR) in Bangladesh. Every individual or corporation eligible to pay taxes under the Income Tax Ordinance 1984 must have a Tax Identification Number (TIN), which is provided through the e-TIN system by the NBR.

In Bangladesh, you need to file your income tax return during the tax season, which runs from July 1 to November 30. Make sure to check the latest tax instructions for the fiscal year on the official website of the National Board of Revenue (NBR). Filing within this period ensures compliance and helps you avoid any penalties.

To submit your income tax return in Bangladesh, follow these steps:

Step 1: Visit the official NBR website or go to www.etaxnbr.gov.bd.

Step 2: Click on ‘eReturn’ and log in with your TIN, password, and captcha.

Step 3: Once logged in, proceed to submit your income tax return. 

This ensures a smooth and efficient filing process.

If you don’t submit your income tax return in Bangladesh without a valid reason, you may face a penalty. The penalty is 10% of the previous year’s income tax or Tk5,000, whichever is higher. Continued non-compliance will result in increasing penalties as per the existing income tax ordinance.

The Single Page Form (IT-GHA 2020) in Bangladesh is designed for individual taxpayers who meet specific eligibility criteria. This simplified form is applicable to individuals with income from salary only, not exceeding BDT 25,00,000. Taxpayers eligible for this form can utilize it for a quicker and more straightforward filing process.

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