Bangladesh Tax Rates
Bangladesh operates a progressive income tax system with rates from 0% to 25%, administered by the National Board of Revenue (NBR). The standard corporate tax rate is 27.5% (25% for listed companies), and VAT is 15%. Bangladesh's garment export sector drives economic growth, and the country offers significant tax incentives for export-oriented industries and Special Economic Zones.
Top Income Tax Rate
25%
Corporate Tax Rate
27.5%
VAT / Sales Tax
15%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Bangladesh's personal income tax applies progressive rates from 0% to 25%. The basic exemption is BDT 350,000 (BDT 400,000 for women and individuals aged 65+; BDT 475,000 for persons with disabilities). Residents are taxed on worldwide income. A minimum tax applies based on the taxpayer's location (BDT 5,000 in Dhaka/Chittagong, BDT 4,000 in city corporations, BDT 3,000 elsewhere).
| Income Range | Tax Rate |
|---|---|
| ৳0 – ৳350K | 0% |
| ৳350K – ৳450K | 5% |
| ৳450K – ৳750K | 10% |
| ৳750K – ৳1.1M | 15% |
| ৳1.2M – ৳1.6M | 20% |
| ৳1.7M+ | 25% |
Corporate Tax
Bangladesh's corporate tax rates vary by company type: 27.5% for non-listed companies, 25% for listed companies, 40% for banks and financial institutions (37.5% if listed), 22.5% for textile and jute manufacturing, and 45% for tobacco companies. Mobile phone companies pay 40%. Export-oriented garment manufacturers benefit from a reduced 12% rate.
Standard Rate
27.5%
Small Business Rate
25%
Capital Gains Tax
Capital gains tax in Bangladesh is 15% on gains from the transfer of capital assets. Gains on the Dhaka and Chittagong Stock Exchange are taxed at varying rates. Real property gains are included in taxable income.
Rate
15%
VAT / Sales Tax
Bangladesh's VAT is levied at a standard rate of 15%. A turnover tax of 4% applies to businesses with annual turnover between BDT 30-50 lakh. Supplementary duty of 20-500% applies to luxury and demerit goods. Essential items including rice, vegetables, and basic foodstuffs are exempt.
Standard Rate
15%
Cryptocurrency Tax
Bangladesh does not recognize cryptocurrency as legal tender. Bangladesh Bank has issued warnings against crypto trading and transactions. No specific tax framework exists for cryptocurrency.
Tax Treaties
Bangladesh has approximately 35 double taxation agreements in force, primarily with major trading partners and investment source countries.
Treaty Network
35
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bangladesh
See how much you could save by moving here from your current country.
+$24K
Tax in United States
$24K
24.4% effective
Tax in Bangladesh
$0
0% effective
You Save
100%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
