Bangladesh: Changes in Income Tax rates

(i) Rates of taxes for individual taxpayers: 

Income Tax rates for individual taxpayers applicable from 1st July 2020 is as follows-

In the case of persons referred to in section 2(46) of Income Tax Ordinance 1984 to whom the above rate of income tax is applicable are individual taxpayers including non-resident Bangladeshis, Hindu Undivided families (HUF), Partnership firms and other taxpayers including Artificial Juridical Persons created by law. 

Provided that: 

(a) The tax free income limit for female taxpayers and taxpayers aged 65 years or above shall be taka 350,000. 

(b) The tax free limit for persons with disabilities will be taka 450,000.

(c) The tax free income limit for persons gazette liberation war wounded freedom fighters will be taka 475,000. 

(d) The tax free income limit for parents or legal guardians of each such disabled child or dependant minor shall be taka 50,000 or more in addition to regular tax free income limit applicable only of such parents and legal guardians. 

(e) The minimum tax shall not be, in no way, less than the amount stated below on the basis of taxpayers residential status:

(f) If a taxpayer owns a small or cottage industry located in the less developed area or in the least developed area and engaged in the production of goods of the said small and cottage industry, then the person shall receive income tax rebate on income arising from such small and cottage industry at the rate as follows-

g) Tax rebate for online tax filing:

If a person submits income tax return for the first time via online, he/ she will be entitled to an additional income tax rebate of taka 2,000.

(ii) Rates of tax for company taxpayers:

Company, Association of Persons, local authority and taxpayers subject to income tax at the maximum rate under Income Tax Ordinance 1984 (Ordinance no. XXXVI of 1984)

(iii) Maximum tax rate for specific class of persons except company and association of persons: