| Corporate Tax Rates in Bangladesh | ||
| Applicable corporate tax rates by entity type as per the Finance Act 2026. Reduced rates commonly require receipts, income and significant expenses to be routed through formal banking channels. | ||
| Corporate Tax , Local Authority etc. Tax rates | ||
| Company | 2025-2026 | 2026-2027 |
| Publicly traded company with more than 10% shares through IPO | 22.50% | 22.50% |
| Publicly traded company with 10% or less shares through IPO | 25% | 25% |
| Non-publicly traded company | 27.50% | 27.50% |
| Trust, Association of Persons (AOP), and Firm | 27.50% | 27.50% |
| One Person Company (OPC) | 22.50% | 22.50% |
| Listed banks, insurance and financial institutions | 37.50% | 37.50% |
| Non-listed banks, insurance and financial institutions | 40% | 40% |
| Merchant banks | 37.50% | 37.50% |
| Cigarette: Non Publicly Traded | 45% | 45% |
| Publicly Traded | 45% | 45% |
| Cellular Phone: Non Publicly Traded | 45% | 45% |
| Publicly Traded | 40% | 40% |
| Private universities, private medical, dental, engineering & IT colleges/universities | 5% | 5% |
| Cooperative Society registered under the Cooperative Societies Act, 2001 | 20% | 20% |
| Knit Ware & Woven Garments : Non Publicly Traded | 12% | 12% |
| Publicly Traded | 12% | 12% |
| Green Garments | 10% | 10% |
| Textile Industries | 15% | 15% |
| Jute Industries | 10% | 10% |
| Research Institutes | 15% | 15% |
| Private University,Medical College | 15% | 15% |
| Co Operative Society | 15% | 15% |
| Poulty ,Feed, Fish, Seeds etc.: | ||
| Income Up to 10,00,000(Ten Lac) | 3% | 3% |
| Next 20,00,000 (Twenty Lac) | 10% | 10% |
| Above Balance | 15% | 15% |
| Dividend | 20% | 20% |
| Trust, Association of Persons (AOP), and Firm are subject to 27.5% income tax. Non-publicly traded companies are subject to 27.5% income tax. Private universities, private medical colleges, private dental colleges, private engineering colleges, and private IT-related colleges/universities are subject to 5% income tax. | ||
| Minimum Tax Regime | ||
| Companies may be required to pay minimum tax on gross receipts even when the business has low profit or a loss. A company’s final liability can be affected by regular tax on profit, minimum tax on receipts, and taxes deducted at source. | ||
| Class of taxpayer | Rate on gross receipts | Rate on gross receipts |
| Manufacturer of tobacco products | 3% | 3% |
| Carbonated or sweetened beverages | 3% | 3% |
| Mobile phone operator | 1.50% | 1.50% |
| Any other company case | 1% | 1% |
Types of tax
Income Tax Act 2023 imposes tax through various mechanisms. Businesses need to be aware of the complex intertwining of tax regimes to ensure both tax compliance and effective tax planning.
1. Regular tax: Tax as computed based on taxable income using the applicable corporate tax rate.
2. Advance income tax: Taxpayers are required to pay advance income tax on a quarterly basis as per their last assessed income.
3. Tax deducted at source: ITA 2023 extensively requires tax to be deducted on payment for supplies and services. Such tax deductions are considered as advance payments of tax
4. Turnover tax: Turnover tax provisions apply on the basis of gross receipts from sale of goods or providing any services.
5. Surcharge and rebates: ITA 2023 also imposes surcharges and rebates on wealth, environmental impact, and social contributions.
6. Other taxes: ITA 2023 imposes various additional taxes under certain circumstances
Corporate tax rates AY2026/27
1. Mobile Phone Operators: 40% Listed* 45% Other
* Listed mobile phone operators who transferred 10% shares through the stock exchanges, of which up to 5% may be pre-initial Public Offering through
*10% corporate tax rebate in the year of listing can be availed if 20% paid-up capital is transferred through IPO
2. Banks, insurance and finance companies: 37.5% Listed 40% Others
3. Tobacco manufacturers: 45% (Additional 2.5% surcharge is applicable on the above business income)
4. General companies: 22.5% Listed* 25% Listed** 27.5% Others
* Listed general companies that transferred at least 10% of its paid-up capital through IPO, Direct Listing or RPO.
** Listed general companies that transferred less than 10% of its paid-up capital through IPO, Direct Listing or RPO. 2.5% reduction in tax rates if all transaction are made through bank transfers
5.Other taxpayers:27.5% Trust, firm, AoP and artificial juridical person 5% Private universities and medical, dental, engineering
FA 2026 changes: Cashless operation provisions now require all transactions to be conducted through bank transfers. This benefit can be availed by both listed and non-listed general companies.
Advance income tax
Advance income tax in Bangladesh is the pre-payment of income tax that taxpayers are required to make throughout the year. This system ensures that the Government receives a steady flow of revenue and helps taxpayers spread their tax payments over the year, rather than paying a lump sum at the end. Advance income tax includes any income tax paid in advance (e.g. at the time of imports), on a periodic basis (e.g. quarterly advance income tax) and withholding tax/tax deducted at source
Quarterly advance income tax
- New taxpayers :If estimated income is likely to exceed Taka 600,000
- Existing taxpayers : If last assessed income exceeds Taka 1 million
- Exclusion : Taxpayer only has income from agriculture income up to Taka 800,000
Timeline for quarterly advance income tax payment
1. 15 September
2.15 December
3. 15 March
4.15 June
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