Think tax law is boring? Not this year.
The Finance Bill 2025 has dropped, and it’s anything but quiet. Packed with sweeping amendments, fine-tuned definitions, and digital compliance crackdowns, this year’s tax reform is built for a modern, post-pandemic economy.
But here’s the thing: it’s not just for accountants anymore.
Whether you’re an individual taxpayer, small business owner, or large corporation, the new income tax changes proposed in the Finance Bill 2025, SROs, and government orders affect how you earn, spend, and report your money.
And yeah, it’s a lot. But you don’t need to read every clause—we’ve simplified it for you.
Individual Taxation Changes You Can’t Ignore
The government’s trying to make the tax system more humane. Especially for employees with legit health costs or employer-covered benefits.
Key Updates:
- Medical Reimbursements:
Reimbursements for serious surgeries (heart, brain, kidney, liver, cancer, etc.) are non-taxable if you’re not a shareholder-employee. - Group Insurance Premiums:
These are no longer treated as perquisites. Translation? They don’t increase your taxable income. - Conveyance Allowance Rules Updated:
Employers need to follow the new allowance structures carefully to avoid non-compliance.
For the latest income tax rates in Bangladesh 2025: everything you need to know
Real Estate and Rent Income Just Got Stricter
Landlords, tenants, and real estate investors — your rent agreements and disclosure habits now matter more than ever.
Advance Rent Rules:
- If you receive more than Tk. 5 lakh in advance rent via non-bank methods — it’s taxed right away.
- Rent paid via bank transfer? You have 5 years (or the lease period) to adjust it.
- Leftover advance rent post-deadline becomes “special rent income” — and it’s fully taxable.
Special Disclosure Scheme:
- A revised tax disclosure scheme allows declaration of previously undisclosed property (buildings, flats, etc.).
- Penalty for multiple property investments has been removed.
Business Income: Tighter Rules, Smarter Filters
Running a business? You’ll want to call your tax consultant after reading this.
New Income Rule:
- If you under-declare initial capital and it’s discovered within 5 years — it’s taxed as business income.
Expense Deductions Tightened:
- Commissions/discounts to directors or sponsor shareholders? No longer deductible.
- Royalty, license fees, and technical know-how fees capped at the lower of:
- 6% of turnover, or
- 15% of net business profit
Digital Expense Rules:
If you pay via mobile wallets or digital means and don’t apply TDS — that expense is inadmissible.
You can still save it… by applying 50% higher TDS.
Minimum Tax Rate Revisions: Relief for Some, Pressure for Others
Minimum Tax Based on Gross Receipts:
- Mobile operators: 1.5% (down from 2%)
- Individuals (non-tobacco): 1% (up from 0.25%)
- Others: 1% (was 0.6%)
Turnover Threshold Increased:
- Minimum tax now applies only to individuals earning over Tk. 4 crore annually (was Tk. 3 crore)
TDS = Minimum Tax:
If you’re not required to file a return, the tax deducted at source (TDS) now counts as your minimum tax.
Other Sources of Income: More Income Now Taxed
Group Insurance Payouts:
- Amounts received from employer-paid group insurance policies are now taxable under “other sources.”
Personal Loans:
- If loans or deposits are received without a bank transfer, they’re taxable.
- Family exemptions apply if received from parents, children, spouses, or siblings.
Mandatory ETIN: Are You On the List?
The list of actions that now require an Electronic Taxpayer Identification Number (ETIN) just got longer.
ETIN Now Required For:
- Applying for or renewing a trade license
- Registering as a doctor, lawyer, engineer, CA, CMA, CS
- Issuing or renewing a credit card
- Mobile financial services agents receiving commission
- Starting an e-commerce business
- Government employees (Grade 10 or above) under MPO
Tax-Free Categories—Even with Late Returns
Yes, some income is still tax-free—even if you submit your return after the official deadline.
These Incomes Remain Exempt:
- Government pension funds
- Gratuity funds (up to Tk. 2.5 crore)
- Government provident fund amounts
- Retirement benefits from public institutions
- Gifts from immediate family (must be declared by both giver and receiver)
- Foreign income remitted lawfully
Definitions and Technical Changes
A few technical terms have been officially defined or restructured.
- Fair Market Value is now explicitly part of the IT Act.
- Specific Return Submission Date clarified — individual taxpayers can get up to 90-day extension.
- Dividend exclusion updated — NPAT from joint ventures to non-individuals doesn’t count as dividend income.
Key FAQs About the Finance Bill 2025 Income Tax Changes
- Are medical reimbursements for serious illnesses still taxable?
No — if you’re not a shareholder-employee and it’s reimbursed by your employer, it’s now tax-exempt. - Do I need ETIN to get a credit card now?
Yes — ETIN is now required for many personal financial and professional activities, including credit card applications. - Are personal loans taxable?
Yes, unless they’re from family (parent, child, spouse, sibling) and received through proper channels. - What’s the minimum tax rate for mobile operators?
It’s reduced to 1.5% of gross receipts. - Can I disclose an old building investment and avoid penalties?
Yes — the special scheme allows you to regularize undisclosed property investments with fewer penalties.
Final Thoughts: Your Next Step in a Post-2025 Tax World
Here’s the truth — the Finance Bill 2025 doesn’t just change the rules; it changes the game.
The message is loud and clear:
- Keep your finances transparent
- File on time
- Avoid off-the-books transactions
- Go digital where possible
Because now, more than ever, compliance = savings.
Whether you’re filing as an individual, managing a business, or navigating cross-border income, this is the year to get proactive.
Ready to prepare your finances for 2025?
Book a session with a tax consultant today or contact us to help you file smarter, save more, and stay fully compliant with the Finance Bill 2025.
Resources:
https://nbr.gov.bd/regulations/acts/finance-acts/eng
https://nbr.gov.bd/taxtypes/income-tax/income-tax-paripatra/eng
