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Bangladesh Capital Gains Tax Guide 2026

Bangladesh does not levy a separate capital gains tax (CGT). Instead, capital gains are added to the taxpayer's total income and taxed at the applicable progressive IIT rates (0–25% for individuals) or corporate rates (22.5–37.5%). Listed shares held for more than 2 years are exempt for individual investors. Securities transaction surcharge applies on share trades. All amounts in BDT (৳).

The absence of a separate CGT regime makes the taxation of capital gains relatively straightforward — gains are simply treated as a category of income under the Income Tax Ordinance 1984. For related guidance, see our Personal Income Tax Guide →, Corporate Tax Guide →, and Investment Income Guide →.

No Separate Capital Gains Tax (CGT)

Bangladesh is one of the few countries that does not have a separate capital gains tax. Capital gains are treated as income from capital gains under the Sixth Schedule of the Income Tax Ordinance 1984 and are aggregated with other income for the year. The gain is simply the difference between the sale proceeds and the cost of acquisition (plus any improvement costs and incidental transfer costs).

For individuals, the gain is taxed at the progressive IIT rates (0% to 25%). For companies, the gain is taxed at the applicable corporate tax rate (22.5% to 37.5%). There is no indexation relief and no distinction between short-term and long-term gains for general assets.

Taxation of Capital Gains by Asset Type

Listed Shares (DSE / CSE)

  • Individual investors: Capital gains from listed shares are exempt from tax if the shares are held for more than 2 years. For holding periods of 2 years or less, gains are generally considered speculative and may be taxed as business income, subject to the individual's taxpayer profile and NBR guidelines.
  • Corporate investors: Gains from share trading are treated as ordinary business income and taxed at the company's applicable rate. The 2-year exemption is primarily designed for individual investors.
  • Securities transaction surcharge: A small surcharge (0.025% to 0.05%) is levied on the value of share transactions on the DSE and CSE, collected by the stock exchange on behalf of the NBR.

Immovable Property

  • Capital gains from the sale of land or buildings are treated as ordinary income and taxed at the seller's applicable rate.
  • No indexation is available. The cost base is the actual purchase price plus renovation/improvement costs.
  • Gains from the sale of a principal residence may be exempt under specific conditions (one-time exemption per taxpayer for a residential property, subject to NBR rules).
  • Rollover relief may be available if the gain is reinvested in another residential property within 2 years (subject to prescribed limits).

Other Assets

  • Gold and precious metals: Gains treated as ordinary income.
  • Cryptocurrency and digital assets: No specific capital gains rules. The NBR is developing guidance; currently gains may be treated as income from other sources, taxed at IIT rates.
  • Vehicles and personal property: Gains from the sale of personal-use assets (vehicles, jewellery, art) are generally not taxable unless the taxpayer is in the business of trading such assets.
  • Foreign assets: Gains on foreign assets are taxable to residents as worldwide income, with foreign tax credit available for taxes paid abroad.

No Indexation Relief

Bangladesh does not provide indexation or inflation adjustment for capital gains calculations. The taxable gain is simply the sale price minus the original cost of acquisition (plus improvement costs). This means that inflationary gains are taxed as real gains, which can result in a higher effective tax rate during periods of high inflation.

Set-Off and Carry-Forward of Capital Losses

  • Capital losses can be set off against capital gains in the same year.
  • If capital losses exceed capital gains, the net loss can be carried forward for up to 6 years and set off against future capital gains.
  • Losses from speculative transactions (share trading held for short periods) can only be set off against speculative gains.
  • Unabsorbed depreciation can be carried forward indefinitely for businesses, but this is distinct from capital loss treatment.

Securities Transaction Tax (Surcharge on Share Trades)

Instead of a separate CGT on short-term trades, Bangladesh imposes a securities transaction surcharge collected by the stock exchange:

  • Buy transactions: 0.025% of transaction value
  • Sell transactions: 0.05% of transaction value
  • The surcharge is collected by the Central Depository Bangladesh Limited (CDBL) and DSE/CSE and remitted to the NBR.
  • This functions as a de facto transaction tax and is not creditable against income tax.

FAQs

Are foreign investors taxed on Bangladeshi capital gains?

Non-resident investors are generally subject to 15% withholding tax on capital gains from the sale of shares of Bangladeshi companies (unless reduced by a Double Taxation Agreement). Foreign institutional investors (FIIs) may have preferential rates under their home country's DTA with Bangladesh.

Are mutual fund distributions subject to capital gains tax?

Mutual fund distributions are treated as dividend income, not capital gains. Dividends are subject to 10% WHT for residents and 20% for non-residents. Capital gains realised by the mutual fund itself are taxed at the fund level (typically 15%).

Is there a minimum holding period for the share exemption?

Yes. For individual investors, listed shares must be held for more than 2 years from the date of acquisition to qualify for the capital gains exemption. Shares held for 2 years or less may be treated as business income and taxed accordingly.

Disclaimer

This guide provides general information about capital gains taxation in Bangladesh for the 2026 assessment year. Tax laws and rates may change through the annual Finance Act. Always consult with a qualified tax advisor or the NBR directly for advice specific to your situation. InvestmentKit does not provide tax advice.

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