If you live or do business in Bangladesh, it’s important to know the current Income Tax Rate in Bangladesh . The National Board of Revenue (NBR) has set new tax slabs and rates for the assessment year 2024–2025 to help you stay compliant and plan your finances better. If you need help filing returns or understanding the rules, ACE Advisory is here to guide you. Our team offers expert support to make income tax filing easy and stress-free. In this guide, we’ll explain the latest tax rates, exemptions, and deadlines in clear, simple language.
Income tax in Bangladesh is a direct tax imposed on individuals’ and companies’ earnings by the National Board of Revenue under the Income Tax Ordinance of 1984. It follows a progressive system, meaning higher incomes are taxed at higher rates—to ensure equity and social justice
NBR Bangladesh.
For individual taxpayers, Income tax in Bangladesh is structured in progressive slabs. The more you earn, the higher the percentage you pay on the portion of income that falls into each bracket. This approach helps distribute the tax burden fairly across different income levels
The classification of taxpayers in Bangladesh is based on specific categories that recognize certain groups with higher tax-free thresholds due to their circumstances. The latest thresholds, as per the Finance Act 2024 and other authoritative sources, are as follows:
General Taxpayer Categories and Tax-Free Thresholds
| Taxpayer Category | Tax-Free Threshold (BDT) |
|---|---|
| General male individual taxpayers | 350,000 |
| Women and senior citizens (aged 65 or above) | 400,000 |
| Taxpayers with disabilities | 475,000 |
| Third-gender taxpayers | 475,000 |
| War-wounded gazette freedom fighters | 500,000 |
| Parent/guardian of a person with disability | Additional 50,000 |
Personal income tax is levied on individuals based on their total annual income. Bangladesh follows a progressive tax structure, meaning higher income brackets are taxed at higher rates. Tax rates differ depending on income levels and taxpayer categories.
| Annual Income (BDT) | Tax Rate |
|---|---|
| Up to 350,000 | 0% |
| Next 100,000 (350,001–450,000) (aged 65 or above) | 5% |
| Next 400,000 (450,001–850,000) | 10% |
| Next 500,000 (850,001–1,350,000) | 15% |
| Next 500,000 (1,350,001–1,850,000) | 20% |
| Next 2,000,000 (1,850,001–3,850,000) | 25% |
| Above 3,850,000 | 25% |
Corporate tax applies to businesses operating in Bangladesh and is based on the legal status, sector, and listing of the company. These rates are mostly flat but vary significantly across industries.
Entity Type / Sector Tax Rate Publicly listed companies 20% Non-listed companies 27.5% One Person Companies (OPC) 22.5% Banks, financial institutions (listed) 40% Banks, financial institutions (non-listed) 42.5% Mobile phone operators 45% Cigarette and tobacco companies 45%To qualify for reduced rates, companies must comply with several conditions:
Non-compliance with these conditions may result in disqualification from the reduced tax rates and attract penalties or higher rates.
Need a quick estimate of your tax liability? AccordHRM’s online payroll calculator lets you input your monthly or annual gross salary and shows you the tax payable under current slabs—automatically factoring in exemptions and advance tax accord HRM. It’s free, user‑friendly, and updated with the latest rates.
Yes. The NBR provides an e‑Filing portal where you can:
1. Access the NBR Online Tax Portal via the “Online Services” tab on nbr.gov.bd.
2. Log in with your e‑TIN and password.
3. Complete the return form, entering income sources and claiming deductions.
4. Upload supporting documents (bank certificates, salary slips, investment proofs).
5. Verify the system‑calculated tax before submission
Yes. Under the Income Tax Act, penalties include:
● First-time filers: BDT 5,000 minimum.
● Previously assessed taxpayers: 50% of last assessed tax or BDT 1,000, whichever is higher.
● Continuing delay: Additional BDT 50 per day of default NBR Bangladesh.
ACE Advisory offers:
● Local expertise & global standards as an Andersen Global member.
● Cloud‑based tools like our proprietary AccordHRM for seamless filing.
● ISAE 3000 certification ensuring top‑tier data security and process integrity.
● Dedicated support from tax specialists who keep you compliant and optimized ACE Advisory.
The tax‑free threshold for general taxpayers is BDT 350,000 per year. Income up to this amount is not subject to tax
Individual taxpayers must file their returns by November 30 each year for the preceding fiscal year
Understanding the Income Tax Rate in Bangladesh is crucial for legal compliance and sound financial planning. With progressive slabs, special thresholds, online e‑Filing, and clear penalty rules, you’re equipped to manage your tax obligations. And when you need expert guidance, ACE Advisory is ready to simplify the process, so you can focus on growing your business.
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