TDS Rate FY 2024-25 in Bangladesh with Section Reference and Brief Description

TDS (Tax Deducted at Source) rates for FY 2024-25 in Bangladesh have been updated under the Income Tax Act 2023 and Withholding Tax Rules 2024.

In this article, we have complied the full TDS rates applicable in FY 2024-25 in Bangladesh, along with the section references, to help you stay compliant with the law.

TDS Rate Chart FY 2024-25

SL	Heads	Sec. Ref	TDS Rate
01	Salaries	Section 86	Average
	Salaries (Government)	Section 86 (3)	Average
02	Payment to Participation Fund, Welfare Fund and Workers’ Welfare Foundation Fund	Section 88	10%
03	(a) Execution of contract, other than a contract for providing or rendering a service mentioned in under sections of Part 7 of the Act. (b) Supply of goods; (c)Manufacture, process or conversion; (d) Printing, packaging or binding	Section 89	Annexure 1
04	Deduction from payment of services	Section 90	Annexure 2
05	Payment for intangibles assets	Section 91	Annexure 3
06	Advertisement in media	Section 92	5%
07	Payment to actors, actresses, producers, etc.	Section 93	(a)10% on the payment in case of purchase of film, drama, any kind of television or radio program   (b)10% on the payment to actor/actress
08	Commission, discount or fees	Section 94	See lesson 2.6
09	Travel agent	Section 95	See lesson 3.1
10	Commission of letter of credit	Section 96	5%
11	Payment against local L/C	Section 97	3% (If purchase of goods for the purpose of trading or reselling after process or conversion) 1% (Payment against the invoice or sale of goods to distributor)   2% (If the payment related to local letter of credit (L/C) and any other financing agreement in respect of purchase or procurement of all kinds of fruits and computer or computer accessories. 1% (If the payment related to local letter of credit (L/C) and any other financing agreement in respect of purchase or procurement of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chilies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, cassia leaf, jute, cotton and yarn.
12	Payment by cellular mobile phone operator	Section 98	20%
13	Payment in excess of premium paid on life insurance policy	Section 99	5%
14	Insurance commission	Section 100	5%
15	Fees of survey for general insurance company	Section 101	15%
16	Intrest on savings account and fixed deposit	Section 102	20% – Trust, Association of Person (AoP), Company   10% – Primary Educational Institute, Chartered Accountants or Cost and Management Accountants or Chartered Secretaies Institute   10% – Any other person except as above
17	Interest income on resident	Section 104	10%
18	Interest on saving instruments	Section 105	10% (No withholding tax on interest on pensioners savings certificate if cumulative investment in such certificate at the end of the income year does not exceed tk. 5 lakh)
19	Interest on securities	Section 106	5%
20	Discount on the real value of Bangladesh Bank Bills	Section 107	Maximum
21	International gateway service in respect of phone call.	Section 108	(1) 1.5% of total revenue received by IGW services operator. (2) 7.5% of revenue paid or credited to ICX, ANS, BTRC and others (3) 7.5% on the whole amount so paid or credited at the time of payment or credit
22	Rental income	Section 109	5%
23	Services from convention hall, conference centre etc.	Section 110	5%
24	Compensation against acquisition of property	Section 111	(a) 6% of the amount of such compensation against the immovable property situated within a city corporation, paurashava or cantonment board   (b) 3% of the amount of such compensation against the immovable property situated outside the jurisdiction of a city corporation, paurashava or cantonment board
25	Export cash subsidy	Section 112	10%
26	Purchase of power	Section 114	6%
27	Any sum paid by real estate developer to land owner	Section 115	15%
28	Commission or remuneration paid to agent of foreign buyer	Section 116	10%
29	Dividends	Section 117	Company – applicable rate for such company Resident/nonresident Bangladeshi person other than company -If TIN, 10% -If No TIN, 15%
30	Income from lottery	Section 118	20%
31	Income of non-residents	Section 119	Annexure 4
32	Import	Section 120	Appendix 5
33	Recruiting agents	Section 121	10% BDT 50,000 as advance tax for license or renew of license
34	C & F Agent	Section 122	10%
35	Deduction of tax from export proceeds	Section 123	1% of the total export proceeds
36	Any income in connection with any service provided to any foreign person by a resident person;   No tax against sale of software or services if it is exempted under paragraph 21 of part 1 of the sixth schedule, or excluded from total income by paragraph 17 and 33 of Part 1 of the Sixth Schedule.	Section 124	7.5%   10% in case of commission received by Freight Forward Agent but 2.5% in case of gross bill including commission.
37	Transfer of property	Section 125	Appendix 6
38	Collection of tax from developer or real estate developer	Section 126	i) in case of building, house, flat, apartment or floor space constcructed or used for residential pupose – BDT 1,600 per square metre ii) in case of building, house, flat, apartment or floor space constcructed or used not for residential pupose – BDT 6,500 per square metre iii) in case of land with building, house, flat, apartment or floor space – 5% of deed value   provided that the tax shall not exceed the above rates.
39	Collection of Tax from lease of property	Section 128	4%
40	Manufacturer of nonmechanical cigarette (Bidi)	Section 129	10% of the value of banderols
41	Brick Manufacturer	Section 130	Tk.80,000/- not exceeding 108,000 square feet sized brickfield, Tk.120,000/-108,000 – 124,000 square feet sized brickfield,   Tk.160,000/-exceeding 124,000 square feet sized brickfield, Tk. 220,000/- brickfield not mentioned as above
42	Renewal of trade license by City Corporation or Paurashava	Section 131	Tk. 3,000/-for Dhaka North City Corporation, Dhaka South City Corporation & Chittagong City Corporation; Tk. 2,000 for any other city corporation,   Tk. 1,000 for any paurashava of any district headquarters; Tk. 500 in any other paurashava
43	Shipping business of a resident	Section 132	5% of total freight received or receivable in or out of Bangladesh 3% of total freight received or receivable from services rendered between two or more foreign countries
44	Sale by public auction	Section 133	10% of sale price
45	Share transfer	Section 134	15% on gain
46	Transfer of securities	Section 135	10% on difference between transfer price and acquired price
47	Transfer of shares of any Stock Exchange	Section 136	15% on gain
48	Member of Stock Exchanges	Section 137	i) 0.05% on the value of shares, debentures and mutual funds transacted   No tax in case of transfer of any listed sukuk and bond
49	Collection of tax from motorvehicles plying commercially	138	Annexure 5
50	Inland ships engaged in carrying passengers in inland water	139	Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters)
	Cargo, container (multipurpose) and coaster engaged in carrying goods in inland water	139	Taka 170 per gross tonnage
	Dump barge engaged in carrying goods in inland water	139	Taka 125 per gross tonnage

Annexure 1: Rate of deduction under section 89

(a) 10% – supply of cigarettes, bidi, zarda, tobacco leaves, gul including any form of tobacco products.

(b) Manufacturing, process or conversion, construction, engineering or any similar works shall be at 7% on base value of rendering service under any contract.

(c) the rate of deduction from the following classes of persons shall be at the following rate:

SI	Description	Rate
1	In case of an industrial undertaking engaged in the production of MS Billets and locally procured MS Scrap	0.5%
2	In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant	0.60%
3	In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount	1%
4	In case of supply of paddy, rice, wheat, potato, fish, meat, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, jute, cotton, yarn and all kinds of fruits	1%
5	In case of supply of all types of fruites	2%
6	In case of an industrial undertaking engaged in producing cement, iron or iron products, ferro alloy products except MS Billets	2%
7	In case of supply of oil by any company engaged in oil refinery, on any amount	2%
8	In case of company engaged in distribution gas, on any amount	2%
9	In case of company engaged in gas transmission, on any amount	3%
10	In case of supply of Extra High Voltage Power Cable 33KV to 500KV by local manufacturers having own Vertical Continuous Vulcanization line	3%
11	In case of supply of books to a person other than the Government, or any authority, corporation or body of the Government, including all of its attached and sub-ordinate offices	3%
12	In case of supply of recycled lead	3%
13	In case of supply of industrial raw materials to a manufacturer	3%
14	Goods supplied in any other cases not mentioned above from serial 1 to 12 and in all other cases per section 89	5%

Annexure 2: Rate of deduction from the payment of services under section 90

SI	Description of service and payment	Rate
1	Advisory or consultancy service	10%
2	(i) Professional service; (ii) technical services fee; (iii) technical know-how or technical assistance fee	10%
3	(i) Catering service; (ii) Cleaning service; (iii) Collection and recovery agency; (iv) Private security service; (v) Manpower supply service; (vi) Creative media service; (vii) Public relations service; (viii) Event management service; (ix) Training, workshop, etc.; (x) Courier service (xi) Packing and shifting service (xii) any other service of similar nature- (a) on commission or fee (b) on gross bill amount	10% 2%
4	Media buying agency service (a) on commission or fee (b) on gross bill amount	10% 0.65%
5	Indenting commission	8%
6	Meeting fees, training fees or honorarium	10%
7	Mobile network operator, technical support service provider or agent of mobile banking operation	12%
8	Credit rating service	10%
9	Motor garage or workshop	8%
10	Private container port or dockyard service	8%
11	Shipping agency commission	8%
12	Stevedoring/berth operation commission- On commission or fee On gross bill amount	10% 5%
13	(i) Transport service, vehicle rental service, carrying service and repair & maintenance service; (ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service;	5%
14	Wheeling charge for electricity transmission	3%
15	Internet service	10%
16	Agent, dirtibutor, agency or channel partner, by any names deliverying services engaged in mobile financial services	10%
17	Commission of freight forward agent	10%
18	Gross bill including commission or gross bill except commission of freight forward agent	2.5%
19	Any other service which is not mentioned in above from serial 1 to 18.	10%

Annexure 3: Rate of deduction under section 91

Description of payment	Rate
Where base amount does not exceed taka 25 lakh	10%
Where base amount exceeds taka 25 lakh	12%

Annexure 4: Rate of deduction from income of non-residents under section 119

SI	Description of services or payments	Rate
1	Advisory or consultancy service	20%
2	Pre-shipment inspection service	20%
3	Professional service, technical services, technical know-how or technical assistance	20%
4	Architecture, interior design or landscape design, fashion design or process design	20%
5	Certification, rating etc.	20%
6	Charge or rent for satellite, airtime or frequency, rent for channel broadcast	20%
7	Legal service	20%
8	Management service including event management	20%
9	Commission	20%
10	Royalty, license fee or payments related to intangibles	20%
11	Interest	20%
12	Advertisement broadcasting	20%
13	Advertisement making or Digital marketing	15%
14	Air transport or water transport except areas mentioned per section 259 and 260	7.5%
15	Manufacturing, process or conversion, construction, engineering or any similar works by contractor, sub-contractor and sub-sub-contractor	7.5%
16	Supplier	7.5%
17	Capital gain	15%
18	Insurance premium	10%
19	Rental of machinery, equipment etc.	15%
20	Dividend- (a) company, fund and trust (b) any other person not being a company, fund and trust	20% 30%
21	Artist, singer or player	30%
22	Salary or remuneration	30%
23	Exploration or drilling in petroleum operations	5.25%
24	Survey for coal, oil or gas exploration	20%
25	Fees, etc. of surveyors of general insurance company	5.25%
26	Any service for making connectivity between oil or gas field and its export point	5.25%
27	Bandwith payment	10%
28	Courier services	15%
29	Any other payments	20%

Annexure 5: Collection of tax from motorvehicles plying commercially under section 138

SI	Description of the vehicle	Rate (Tk)
1	Bus having seats exceeding 52	16,000
2	Bus having seats not exceeding 52	11,500
3	Air-conditioned bus	37,500
4	Double decker bus	16,000
5	Air-conditioned (AC) minibus/coaster	16,000
6	Non-AC minibus/coaster	6,500
7	Prime mover	24,000
8	Truck, lorry or tank lorry having payload capacity exceeding five tons	16,000
9	Truck, lorry or tank lorry having payload capacity exceeding one and half tons but not exceeding five tons	9,500
10	Truck, lorry or tank lorry having payload capacity not exceeding one and half tons	4,000
11	Pickup van, human hauler, maxi or auto rickshaw	4,000
12	Air-conditioned taxicab	11,500
13	Non-AC taxicab	4,000

What Is TDS in Bangladesh?

TDS, or Tax Deducted at Source, is a tax collection method where the payer deducts tax before making certain payments. In Bangladesh, TDS is applied under the Income Tax Act 2023, and it’s crucial for companies and individuals involved in financial transactions to follow the updated TDS rates for FY 2024-25. The revised TDS rates have introduced a few changes to align with the new Withholding Tax Rules 2024.

Understanding the Withholding Tax Rules 2024

The Withholding Tax Rules 2024 (also referred to as Utse Kor Bidhimala 2024) govern how TDS is applied in Bangladesh. These rules complement the Income Tax Act 2023 and introduce refinements, such as updated rates and clearer guidelines for deductors. The rules are designed to simplify the tax deduction process, making it easier for businesses and individuals to comply with Bangladesh’s taxation laws.

How to Calculate TDS in Different Situations

Calculating TDS can get tricky, especially when multiple sections apply to a single transaction. For instance:

• Payments to contractors: If the total payment exceeds the threshold, TDS must be deducted on the entire amount.
• For salaried employees: The tax is deducted based on the total taxable income spread across the financial year.

Having a good accounting system in place can help you avoid errors in TDS calculation. Many businesses in Bangladesh use accounting software that automatically calculates TDS based on the latest rates.

Changes in TDS Rates for FY 2024-25

Several changes in the TDS rates have been incorporated under the new Income Tax Act 2023. These include:

• Higher rates for non-resident contractors.
• Increased focus on digital transactions, where online payments now fall under certain TDS provisions to capture taxes on digital services.

To remain compliant, make sure you’re aware of any recent changes, and consult the Withholding Tax Rules 2024 for further clarification.