Bangladesh Corporate Tax Guide 2026

Corporate Tax Rates 2026

Corporate tax rates for the 2026 assessment year (income year 2025–26) are as follows:

• Publicly traded companies: 22.5% (listed on Dhaka or Chittagong Stock Exchange)
• Non-publicly traded companies: 27.5% (private limited companies)
• Manufacturing companies (non-public, non-green): 30%
• Green / eco-friendly manufacturing factories: 10% (reduced rate for certified green factories — Leadership in Energy and Environmental Design (LEED) certified or equivalent)
• Banks, insurance companies, and financial institutions: 37.5%
• Mobile phone operators: 32.5%
• Tobacco manufacturers: 32.5%
• Publicly traded REITs: 0% (pass-through treatment)

All rates are applied to the total taxable income of the company. Surcharge and minimum tax provisions may increase the effective rate.

Green Factory Incentive (10% Rate)

Manufacturing companies that operate LEED-certified green factories (or equivalent certified by the Bangladesh Garment Manufacturers and Exporters Association / BGMEA or Bangladesh Knitwear Manufacturers and Exporters Association / BKMEA) are eligible for a reduced corporate tax rate of 10% for the first 5 years of commercial production, and 15% thereafter. This incentive has been a major driver of Bangladesh's near-zero-carbon ready-made garment (RMG) sector. Eligible factories must obtain certification from the U.S. Green Building Council (USGBC) or an equivalent recognised body.

Minimum Tax — 0.6% of Gross Turnover

All companies must pay a minimum tax equal to 0.6% of gross turnover (gross revenue) even if the computed tax liability under the normal rate is lower. The minimum tax applies to all corporate taxpayers except certain exempt entities. The minimum tax is creditable against future tax liabilities in the following four years. Specific sectors (e.g., banks, mobile operators) may have higher minimum tax rates prescribed in the Finance Act.

Advance Income Tax (AIT) on Imports

Importers must pay Advance Income Tax (AIT) at the time of import — typically 4% to 5% of the import value (cif value + customs duty + supplementary duty). AIT is creditable against the company's total tax liability for the year. Any excess AIT may be claimed as a refund or carried forward. AIT also applies to certain domestic transactions (e.g., supply of goods to government departments).

Capital Gains — No Separate Rate

Bangladesh does not impose a separate capital gains tax. Capital gains realised by companies are treated as ordinary income and taxed at the applicable corporate tax rate (22.5% to 37.5%). Gains from the sale of listed shares held for more than 2 years are exempt from tax for individuals, but companies are generally taxed on all gains as ordinary business income unless a specific exemption applies. No indexation or taper relief is available.

New Company Listing Incentives

Companies that list their shares on a stock exchange (DSE or CSE) may qualify for reduced corporate tax rates (22.5% instead of 27.5% for non-public) and other incentives. Additional tax benefits include:

• Exemption from advance income tax (AIT) on imports for qualifying listed companies in certain sectors
• Reduced minimum tax rates for the first 3 years after listing
• Lower withholding tax rates on dividend distributions to shareholders

Filing and Compliance

• Tax year: 1 July to 30 June
• Return due date: 15 January (for audited companies; 30 November for unaudited)
• Documentation: Audited financial statements, tax computation, depreciation schedule, tax holiday/incentive documentation
• Advance tax payments: Payable in quarterly instalments based on estimated income
• Transfer pricing: Bangladesh has transfer pricing regulations aligned with OECD guidelines; related party transactions require arm's length pricing and documentation

FAQs

Do branches of foreign companies pay higher rates?

Foreign branch profits are taxed at 30%, plus a 5% branch profit remittance tax (total 35% effective). Permanent establishments of foreign companies are generally taxed at non-public rates applicable to their business type.

Are there tax holidays available?

Yes. Tax holidays are available for specific sectors (e.g., IT/ITES companies, certain export-oriented industries, physical infrastructure projects) for 5 to 10 years. The Finance Act 2025 extended certain holiday schemes for newly established industrial undertakings until 2030.

How is the minimum tax calculated for multi-product companies?

Minimum tax (0.6% of gross turnover) is calculated on total gross receipts from all operations before any deductions. For companies with multiple business lines, the minimum tax applies to aggregate turnover.

Disclaimer

This guide provides general information about Bangladesh corporate income tax for the 2026 assessment year. Tax rates, incentives, and compliance requirements 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.