Whether you’re a Bangladeshi citizen or an expat working here, understanding how personal income tax applies to you is essential. Here’s a simple guide to the tax rules in Bangladesh for the Fiscal Year (FY) 2024-25 or Assessment Year (AY) 2025-26, including updated rates, thresholds, surcharges, and key definitions.
What is the Tax Rates for Individuals in Bangladesh for FY 2024–25?
The tax rates for FY 2024-25 or AY 2025-26 are progressive for Resident Individuals and Non-resident Bangladeshi citizens are as follows:
| Total Income (BDT) | Tax Rate (%) |
|---|---|
| First 350,000 | 0% |
| Next 100,000 | 5% |
| Next 400,000 | 10% |
| Next 500,000 | 15% |
| Next 500,000 | 20% |
| Next 20,000,000 | 25% |
| Remainder | 30% |
What is the tax-free income limit in Bangladesh for FY 2024-25?
The tax-free income limit in Bangladesh for FY 2024-25 is
- General taxpayers: BDT 350,000
- Women and senior citizens (65+): BDT 400,000
- Persons with disabilities: BDT 475,000
- War-wounded freedom fighters: BDT 500,000
- Parents or guardians of a disabled person: Extra BDT 50,000 added to their limit
- Third Gender Taxpayers: BDT 475,000
This means you don’t pay tax on income up to these amounts, depending on your category. For example, a disabled person’s parent could get a total exemption of BDT 400,000 (general) + BDT 50,000 = BDT 450,000.
Non-Residents Who Are Not Bangladeshi Citizens
- Taxed at flat 30% on Bangladesh-sourced income.
- No slab benefits or exemptions.
Surcharge on Wealth
If your net wealth exceeds BDT 40 million, you’ll pay extra surcharge on top of regular tax:
| Net Wealth (BDT) | Surcharge Rate |
|---|---|
| Up to 40 million | Nil |
| One or more of the following: 1. Above BDT 40 million to BDT 100 million. 2. Ownership of more than one motor car. 3. Ownership of house property having an aggregate area of more than 8,000 sq. ft. | 10% of tax payable |
| Above BDT 100 million to BDT 200 million | 20% of tax payable |
| Above BDT 200 million to BDT 500 million | 30% of tax payable |
| Above BDT 500 million | 35% of tax payable |
✅ Special triggers for 10% surcharge:
- Owning more than one car.
- Owning property over 8,000 sq. ft. in total.
Income Tax Rate FY 2024-25 PDF
Download pdf file of income tax rate for FY 2024-25 in Bangladesh.
Who is a Resident in Bangladesh for Tax Purpose?
- A person staying in Bangladesh for 182 days or more in any income year is a resident.
- Alternatively, anyone staying 90 days or more in Bangladesh in the income year and 365 days or more in the preceding four years is also considered resident.
Non-residents are those who do not meet residency criteria.
Resident vs Non-Resident: Who Pays What?
Bangladesh taxes you differently based on your residential status each tax year:
- Resident:
- Taxable on global income (income earned anywhere in the world).
- Must file and pay tax on all Bangladeshi and foreign-sourced income.
- Non-Resident:
- Taxable only on Bangladeshi-sourced income (income earned in Bangladesh).
Minimum Tax Rules
If your gross receipts exceed BDT 30 million, you pay the highest of:
✔️ Tax on profits as per slabs.
✔️ WHT on certain income (e.g. interest).
✔️ 0.25% on gross receipts.
Also, if you cross the tax-free threshold, there’s a minimum payable tax by area:
| Area | Minimum Tax (BDT) |
|---|---|
| Dhaka North/South & Chittagong City Corporation | 5,000 |
| Other City Corporations | 4,000 |
| Other Areas | 3,000 |
Key Points for Expats
- Foreigners working in Bangladesh must determine residence status annually.
- Resident foreigners pay tax on worldwide income.
- Non-residents pay 30% on Bangladeshi income.
Deadlines
- Typically by 30 November of the assessment year.
- Penalties apply for late or incorrect filings.
How Dhaka Consulting Can Help
Dhaka Consulting offers:
✔️ Individual tax return filing.
✔️ Residency and withholding advice.
✔️ Wealth and surcharge planning.
✔️ Support for expats and employers.
✔️ Tax optimization strategies.
FAQs on Bangladesh Individual Income Tax
1. Who is considered a resident for tax in Bangladesh?
An individual present in Bangladesh for 182 days or more in FY 2024-25, or 90 days in FY 2024-25 plus 365 days over the prior four years is considered resident for tax in Bangladesh.
2. What is the tax-free income limit for residents?
BDT 350,000 for general taxpayers, with higher limits for women/seniors (BDT 400,000), disabled persons (BDT 475,000), and freedom fighters (BDT 500,000).
3. Are Non-resident Individuals taxed the same as residents?
Non-residents who are Bangladeshi citizens use resident slabs. Non-residents who aren’t citizens pay flat 30%.
4. What is the surcharge, and when does it apply?
A surcharge is added to tax liability if net worth exceeds BDT 40 million, ranging from 10% to 35%, or for owning multiple cars/houses over 8,000 sq. ft.
5. What is the minimum tax for Dhaka residents?
BDT 5,000 if income exceeds the tax-free threshold in Dhaka/Chittagong City Corporations.
6. Do expats need to file returns?
Yes, if their Bangladesh-sourced income exceeds the exemption limit (BDT 350,000).
