Tax Rate in Bangladesh 2013

Most Bangladeshi people do not pay income tax. Many businessmen hire income tax lawyers or attorney to solve their income tax problems, while some just bribes a few government officials and income tax officers to reduce tax. Paying tax is your duty. So pay tax and be a good citizen. Here's some income tax info, that might be helpful to you.

Tax Free Limit of Individual Tax Payer’s increased for the Financial Year 2013-14. In Financial Year   2012-13 Individual Tax Free Limit was Tk-2,00,000/-, this year it increased to Tk-2,20,000/-.On the other hand for women and senior citizen increased to Tk-2,50,000/- from Tk-2,25,000/-.And also increased for disable tax payer’s Tk-3,00,000/- from Tk-2,75,000/-. The corporate tax remain the same for FY-2012-13 and FY-2013-14.    

Tax Rate (Assessment Year- 2013-2014) :

Other than Company:

For individuals (other than female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers), tax payable for the

First 2,20,000/- Nil

Next 3,00,000/- 10%

Next 4,00,000/- 15%

Next 3,00,000/- 20%

Rest Amount 25%

For female taxpayers, senior taxpayers of age 65 years and above, tax payable for the

First 2,50,000/- Nil

Next 3,00,000/- 10%

Next 4,00,000/- 15%

Next 3,00,000/- 20%

Rest Amount 25%

For disable taxpayers, tax payable for the

First 3,00,000/- Nil

Next 3,00,000/- 10%

Next 4,00,000/- 15%

Next 3,00,000/- 20%

Rest Amount 25%

Minimum tax for any individual assessee is Tk. 3,000 (for every one)

Non-resident Individual 25% (other than non-resident Bangladeshi)

On Dividend income 20%

For Companies

Publicly Traded Company 27.5%

Non-publicly Traded Company 37.5%

Bank, Insurance & Financial Company 42.5%

Mobile Phone Operator Company 45%

Publicly Traded Mobile Operator Company 35%

If any publicly traded company (excluding Mobile Operator Company) declares more than 20% dividend, 10% rebate on total tax allowed.

Tax Rebate for investment :

Rate of Rebate:

Amount of allowable investment is either actual investment in a year or up to 20% of total income or Tk. 10,00,000/- whichever is less. Tax rebate amounts to 10% of allowable investment.

Types of investment qualified for the tax rebate are :-

• Life insurance premium ,

• Contribution to deferred annuity ,

• Contribution to Provident Fund to which Provident Fund Act, 1925 applies,

• Self contribution and employer's contribution to Recognized Provident Fund,

• Contribution to Super Annuation Fund,

• Investment in approved debenture or debenture stock, Stocks or Shares,

• Contribution to deposit pension scheme approved by the government,

• Contribution to Benevolent Fund and Group Insurance premium