Bangladesh (BD)
Bangladesh is a densely populated delta nation in South Asia, bordered by India and Myanmar, with the Bay of Bengal to the south.
Tax & Payslip Guide
Understanding your taxes in Bangladesh — tax year July 1 to June 30.
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 375,000 | 0% | Tax-free threshold for FY 2025-26 (assessment year 2026-27) for general resident taxpayers. Higher thresholds: BDT 425,000 for women and senior citizens aged 65+; BDT 500,000 for physically challenged and third-gender taxpayers; BDT 525,000 for gazetted freedom fighters. The previous 5% bracket was removed — the first taxable slab now starts at 10%. |
| 375,001 | 675,000 | 10% | Next BDT 300,000 under FY 2025-26 slabs. |
| 675,001 | 1,075,000 | 15% | Next BDT 400,000. |
| 1,075,001 | 1,575,000 | 20% | Next BDT 500,000. |
| 1,575,001 | 3,575,000 | 25% | Next BDT 2,000,000. |
| 3,575,001 | ∞ | 30% | Remaining taxable income. Non-resident individuals are taxed at a flat 30% unless tax treaty relief applies. |
🏛️ Social Contributions
Many formal employers operate recognised provident funds. Bangladesh has no universal expat social-insurance contribution scheme.
Labour Act and contract terms may create gratuity or termination-benefit obligations; define them in writing before signing.
Some industries have welfare funds or compliance obligations. Confirm factory, NGO or project-sector rules with payroll.
🛒 VAT Rates
VAT is administered by the National Board of Revenue under the VAT and Supplementary Duty framework. Restaurants, telecoms, imports and services may also involve supplementary duty or withholding rules.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Tax residence is day-count and facts-based. A foreign employee physically working in Bangladesh can create Bangladesh-source salary even if paid offshore. Employer PAYE/withholding does not always settle tax on benefits in kind, housing, school fees, offshore salary splits or freelance income. Get tax advice before crossing long-stay thresholds or signing a net-pay package.
📋 Double Tax Treaties
Bangladesh has a network of double-tax treaties including with many major investor countries such as USA, UK, India, Canada, South Korea, Japan and others. Treaty relief normally requires residency certificates and proper documentation; it does not remove the need to register, withhold or file where Bangladesh law requires it.
Tax & Payslip
Unlock the complete Tax & Payslip guide for Bangladesh — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere