Understanding the current income tax rates in Bangladesh is essential for both individuals and businesses to ensure compliance and effective financial planning. The National Board of Revenue (NBR) has outlined the tax slabs and applicable rates for the income year 2024–2025. This comprehensive guide provides detailed information on the latest tax rates, exemptions, and surcharges.
Bangladesh income tax rates according to the Finance Act 2024 and the Income Tax Act 2023.
Individual Income Tax Slab
General Taxpayers
For the income year 2024–2025, the income tax rates for individual taxpayers are structured progressively. The following slabs apply:
- Up to BDT 350,000: 0% (Tax-free threshold)
- Next BDT 100,000: 5%
- Next BDT 400,000: 10%
- Next BDT 500,000: 15%
- Next BDT 500,000: 20%
- Next BDT 2000,000: 25%
- On remaining balance: 30%
These rates are applicable to male taxpayers below 65 years of age.
Special Categories
Certain categories of taxpayers are entitled to higher tax-free thresholds:
- Female taxpayers and senior citizens (65 years and above): BDT 400,000
- Taxpayers with disabilities: BDT 475,000
- Freedom fighters: BDT 500,000
- In case of parent/legal guardian of a physically challenged person, they will get a further initial exemption of BDT 50,000 in addition to above limit.
Surcharge on Wealth
In addition to income tax, a surcharge is levied on individuals whose net wealth exceeds certain thresholds
- Net wealth up to BDT 40 million: No surcharge
- Net wealth between BDT 40 million and BDT 100 million: 10% of income tax payable
Or Ownership of more than one motor car.
Or Ownership of house property having an aggregate area of more than 8,000 sq. ft.
- Net wealth between BDT 100 million and BDT 200 million: 20% of income tax payable
- Net wealth between BDT 200 million and BDT 500 million: 30% of income tax payable
- Net wealth above BDT 500 million: 35% of income tax payable
The surcharge is calculated based on the total income tax liability.
Minimum Tax Liability
The NBR has stipulated a minimum tax amount based on the taxpayer’s location:
- Dhaka and Chattogram City Corporations: BDT 5,000
- Other city corporations: BDT 4,000
- Areas outside city corporations: BDT 3,000
This minimum tax ensures a baseline contribution from all taxpayers, regardless of income.
Tax Rebates on Investments
An assesse is eligible for rebate as per below:
- 0.03*”A”, or
- 0.15*”B”, or
- 10 (Lac)-
Here,
“A”= Tax exempted income, such income subject to reduced rate of tax and such income subject to minimum tax, And
“B”= The total amount of investment and expenditure of an assesse as per the 3rd part of the 6th schedule.
To get maximum benefit of tax rebate, Taxpayers can invest in below instruments by 30 June 2025.
As per 6th Schedule, Part-3, Income Tax Act 2023
| Investment Sector | Eligible amount | Law Reference |
| Government Securities (Bangladesh Sanchay Patra /Bond/Debenture/ T-Bill) | 500,000 | Para 7 (ক) |
| Unit certificate/ Mutule fund/ ETF certificate | 500,000 | Para 7 (খ) |
| DPS | Up to Tk. 120,000 per annum at any scheduled Bank | Para 7 (গ) |
| Listed company’s Share | Para 8 | |
| Donation to philanthropic Hospital (The Hospital needs to approved from Board within one year prior to donation and establish outside from city corporation area) | Para 9 | |
| Donation to organization established for welfare of disabled persons (the organization needs to approved from Social Welfare Department within one year prior to donation) | Para 10 | |
| Donation Govt Zakat Fund | Para 11 | |
| Life insurance premium | 10% of policy value | Para 1 |
| Donation to philanthropic or educational institution (Govt Approved) | Para 13 | |
| Donation to an institution in memory of Liberation war | Para 14 |
Conclusion
Staying informed about the latest income tax rates and regulations in Bangladesh is crucial for effective financial management and compliance. Taxpayers are encouraged to consult with tax professionals or refer to official NBR publications for detailed guidance tailored to their specific circumstances.
