Reduced rates of Corporate Tax applicable to certain industrial companies

 

Companies	Rate
Textile industries (time extended up to 30 June 2022)	15%
Knit wear and woven garments manufacturer and exporter (time extended up to assessment year 2021-2022)	12%
Knit wear and woven garments manufacturer and exporter with internationally recognised factory with ‘green building certification’ (time extended up to assessment year 2021-2022)	10%
Research institutes at national level, registered under the Trust Act, 1882 or Societies Registration Act, 1860	15%
Private universities, Private medical college, Private dental college, Private engineering college or Private college engaged in imparting education on information technology	15%
Co-operative society registered under Co-operative Society Act 2001 other than income from agricultural or cottage sector	15%
Production of pelleted poultry feed, Production of pelleted feed for fish, shrimp and cattle, Production of seeds marketing of locally produced seeds, cattle farming, dairy farming, horticulture, frog farming, sericulture, mushroom farming and floriculture: Income up to Tk. 1,000,000 Next Tk. 2,000,000 On the balance amount	3% 10% 15%

MANNER OF VAT COLLECTION-VAT Calculation Formula

 

SL NO	TAX TYPE	FORMULA
1	Customs Duty(CD)	Assessable Value(AV)
2	Regulatory Duty(RD)	Assessable Value(AV)
3	Safeguard Duty(SGD)	Assessable Value(AV)
4	Countervailing Duty(CVD)	Assessable Value(AV)
5	Antidumping Duty(ADD)	Assessable Value(AV)
6	Supplementary Duty(SD)	AV+CD+RD+SGD+CVD+ADD
7	VAT	AV+CD+RD+SGD+CVD+ADD+SD
8	AT	AV+CD+RD+SGD+CVD+ADD+SD

 

Tax rates for Residents including non-resident Bangladeshi and Minimum tax payable as per FA 2021-2022

 

Residents including non-resident Bangladeshi

Total income	Tax rate
First Tk. 300,000*	Nil
Next Tk. 100,000	5%
Next Tk. 300,000	10%
Next Tk. 400,000	15%
Next Tk. 500,000	20%
On the balance	25%

*Initial exemption limit for:

—     women and senior citizens aged 65 years or above it is Tk. 350,000,

—     physically challenged persons it is Tk. 450,000, and

—     gazetted war-wounded freedom fighters it is Tk. 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.

Please see section 3.2 for the definition of resident.

Non-residents

Non-residents other than Bangladeshi non-residents shall pay tax on the total income at the rate of 30%.

Minimum tax payable

Minimum tax payable by an assessee is as follows:

Location	Minimum tax
Within Dhaka and Chattogram City Corporation	Tk. 5,000
Any other City Corporation	Tk. 4,000
Other than City Corporation	Tk. 3,000