Major Tax Changes in Bangladesh for 2024-2025
Individual Income Tax Changes
The tax-free income threshold for general taxpayers is BDT 350,000 per year, with rates increasing progressively to 30% for income above BDT 2,000,000. For future years (2026-2027 and 2027-2028), the initial exemption will increase to BDT 375,000.
Special categories maintain different thresholds: women and senior citizens over 65 have BDT 400,000 tax-free, physically challenged persons and third gender individuals have BDT 475,000, and war-wounded freedom fighters have BDT 500,000.
Corporate Tax Changes
Non-publicly traded companies saw a reduction in tax rate from 27.5% to 25.0% with certain conditions, and One Person Companies (OPC) were reduced from 22.5% to 20.0% . However, for non-listed companies, the tax rate is proposed to increase to 27.5% from 25% in the Finance Ordinance 2025. Publicly traded companies that list more than 10% of their capital through IPO are taxed at 20%.
VAT Changes
The standard VAT rate remains 15% for most goods and services . New VAT exemptions were introduced for liquefied natural gas (LNG), computer monitors, aircraft lease rent, and packaged liquid milk.
Administrative Reform
A major structural change is happening: the traditional National Board of Revenue (NBR) is being abolished and replaced with two new bodies - the Revenue Policy Division and the Revenue Management Division.
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