Income tax slab and rate for individual resident in Bangladesh.

 

S.L	Total Income	Rate of tax	Tax amount
1	On 1st 300,00	Nil
2	On 2nd 100,00	5%	5,000
3	On 3rd  3,00,000	10%	30,000
4	On 4th 4,00,000	15%	60,000
5	On 5th 5,00,000	20%	100,000
6	Remaining	25%	-

1. Tax free income for women and individual above 65 age-350,000

2. Tax free income for person with disability 450,000

3. Tax free income for Gazetted freedom Fighter 475,000 

In case of parent/legal guardian of a physically challenged person, he/she (only one assessee if father and mother both are taxpayer) will get a further initial exemption of Tk. 50,000 in addition to above limit.

All taxpayers who will file their tax return first time through online will enjoy tax rebate of Tk. 2,000.

 

Types of VAT Rates

 

·        Standard VAT rate 15%

·        Trade VAT rate 5%

·        Truncated VAT Rate - 3rd Schedule - 5%, 7.5%, 10%

•                     Trading stage VAT for Medicine – 2.4%

•                     Trading stage VAT for Petroleum – 2%

•                     Land Development – 3%

•                     Apartment sale or transfer by Real Estate Developer

– 2% ( upto 1600 sft), 4.5% (from 1601 sft and above)

·         Re-registration of any size– 2%

·        Packaged VAT system has been abolished.

·        Fixed Amount of VAT for newsprint, bricks, M.S. Product and SIM cards.

·        Turnover tax rate – 4%

Withholding VAT

 
VAT Act 2012 has given certain business entities the responsibility to withhold VAT. 
Sub-section 21 of section 2 of VAT Act 2012 defined withholding entity to mean-
1. a Government entity (Ministry, board, authority, semi- Government, autonomous body, state owned entity, local authority or similar types of institutes);
2. a non-government organization approved by the NGO Affairs Bureau or the Directorate-General of Social Welfare;
3. a bank, insurance company or a similar financial institution;
4. a post-secondary educational institution; or
5. a limited company;

Supplementary Duty (SD) and VAT Registration Threshold

 Supplementary Duty means additional duty that is added with conventional duty imposed by government at the stage of import, manufacturing, and supply of services inside Bangladesh.

Turnover from BDT 5m to 30m is liable for enlistment as turnover tax payer unless there is specific instruction by the government to get VAT registration.Turnover tax rate is 4%.
VAT registration must be obtained if Turnover is BDT 30 million and above.