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Tax Rates

Tax Rates

Income tax rates for various types of persons and or various types of income as
well as surcharges are updated through the Finance Act which becomes effective
from 1 July of each financial year. As per Section 183 if the Act is delayed
previous rate or the rate proposed in the bill, whichever is beneficial to the
the assessee shall be applied.
9.12.1 Tax rates for individuals, etc.

No tax is payable by tax residents on income not exceeding TK 250,000. The
following rates are applicable to the resident individual, Hindu undivided family,
partnership firm, non-resident Bangladeshi, association of persons and any
other taxpayer including artificial judicial person created by the act= Residents including non-resident Bangladeshi
Total income Tax Rate
First Tk 250,000* Nil
Next Tk 400,000 10%
Next Tk 500,000 15%
Next Tk 600,000 20%
Next Tk 300,000 25%
On the balance 30%
*Initial exemption limit for women and senior citizens aged 65 years or over is
TK 300,000 for physically challenged persons, it is TK 400,000 and for gazette
war wounded freedom fighters, it is TK 425,000.
In case of parent/legal guardian of a physically challenged persons, he/she will
get a further initial exemption of TK 50,000 in addition to above limit. Nonresidents:
Nonresident other than Bangladeshi non-residents shall pay tax on the total
income at the rate of 30% Minimum tax payable:
Minimum tax payable is as follows depending on location of the assessee:
Location Minimum Tax
Within Dhaka and Chattogram city corporation TK 5,000
Any other City corporation Tk 4,000
Other than city corporation Tk 3,000 Dividend Income:
Dividend income received for individual assessee from company listed with an
exchange in Bangladeshi is tax exempted up to Tk 50,000. Charge of surcharge:
Surcharge is payable by an individual assessee on total tax payable if the total
net worth exceeds Tk 30 million as stated below:
Total net worth Rate
a) Over Tk 30 million to Tk 50 million or owner of more than 1 motor
car or owner of a flat of 8,000 sft size within City Corporation area

b) Over Tk 50 million to Tk 100 million 15%
c) Over Tk 100 million to Tk 150 million 20%
d) Over Tk 150 million to Tk 200 million 25%

e) Over Tk 200 million 30%
However, a minimum surcharge will not be less than Tk 3,000 for option (a)
above and not less than Tk 5,000 if net worth exceeds Tk 100 million.

However, if the total net wealth is Tk 500 million or more, a surcharge will be
higher of the following:
a) 0.1% of net wealth; and
b) 30% of the surcharge on total tax.

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