Corporate taxation in Bangladesh includes income tax, VAT, sales tax, import duties, and export duties. The tax rates and laws for each type of tax vary depending on the industry and the type of goods and services involved. Companies operating in Bangladesh should be aware of these tax laws to ensure compliance and to minimize their tax liability.
The income tax is the most significant corporate tax in Bangladesh. It is levied on the income earned by companies and individuals. The Income Tax Ordinance, 1984, governs income tax in Bangladesh. The tax rates for companies are as follows:
- For publicly traded companies, the tax rate is 25%.
- For non-publicly traded companies, the tax rate is 35%.
However, there are some special tax rates available for certain industries, such as the textile and garments industry.
Value-Added Tax (VAT):
The VAT is a consumption tax that is levied on the value added at each stage of production and distribution. The VAT Act, 1991, governs the VAT in Bangladesh. The standard VAT rate is 15%. However, there are different VAT rates for different goods and services. For example, the VAT rate for essential goods, such as rice and medicine, is 5%.
The sales tax is a tax that is levied on the sale of goods and services. The Sales Tax Ordinance, 1991, governs sales tax in Bangladesh. The sales tax rate is 5%.
The import duties are levied on goods that are imported into Bangladesh. The Customs Act, 1969, governs the import duties in Bangladesh. The import duty rates depend on the type of goods that are being imported. There are different rates for different types of goods, ranging from 0% to 50%.
There are currently no export duties in Bangladesh.