Exemption on private power generation companies

SRO no. 194-AIN/Income Tax/2023

The Government of Bangladesh has introduced new exemptions for private power generation companies except coal-fired power generating companies, provided that the company follows all conditions and policies under Private Sector Power Generation Policy of Bangladesh.
– Tax is exempted on income from generating electricity, from the date of commercial production till 30 June 2036;
– Tax is exempted on expatriates employed in the company, up to 3 years from their arrival in Bangladesh;
– Tax is exempted on interest on foreign loans taken by the company
– Tax is exempted on royalties, technical know-how and technical assistance fees;
– Tax is exempted on capital gains arising from transfer of shares
Income tax is exempted for companies starting commercial production from 30 June 2015 in the following rates:
– 100% for the first five years of commercial production rate
– 50% for the next three years
– 25% for the next two years
SRO 211/2013, SRO 05/2020 and SRO 212/2013 are hereby repealed.