Generally, there are three types of tax systems around the world. These are Progressive tax system, Regressive tax system, and Proportional tax system. In a Progressive tax system, the tax rate increases as the taxpayer’s income increases. Conversely, in a Regressive tax system, the tax rate decreases as the taxpayer’s income increases. On the other hand, in a Proportional tax system, the same tax rate is applicable to all taxpayers. Additionally, some countries followed Hybrid tax system, which uses a mix of different tax systems. The National Board of Revenue (NBR) regulates income taxes in Bangladesh. In addition, the tax system uses two concepts: Income Year and Assessment Year. This guide provides all rates for the Assessment Year. This blog post discusses the income tax rates in Bangladesh for the year 2023-2024:

Individual Income Tax Rates: : 

Income tax rates for individual residents for the year 2023-2024 are as follows:

For regular taxpayers:

Income range Tax Rate
Up to BDT 350,0000%
BDT 350,001 to BDT 450,0005%
BDT 450,001 to BDT 750,00010%
BDT 750,001 to BDT 1150,00015%
BDT 1150,001 to BDT 1650,00020%
Above BDT 1650,00125%

For Women and Senior Citizens above 65 years:

Income rangeTax Rate
Up to BDT 400,0000%
BDT 400,001 to BDT 500,0005%
BDT 500,001 to BDT 800,00010%
BDT 800,001 to BDT 1200,00015%
BDT 1200,001 to BDT 1700,00020%
Above BDT 1700,00125%

For disabled taxpayers and third-gender individuals:

Income rangeTax Rate
Up to BDT 475,0000%
BDT 475,001 to BDT 575,0005%
BDT 575,001 to BDT 875,00010%
BDT 875,001 to BDT 1275,00015%
BDT 1275,001 to BDT 1775,00020%
Above BDT 1775,00125%

For Freedom Fighters:

Income rangeTax Rate
Up to BDT 500,0000%
BDT 500,001 to BDT 600,0005%
BDT 600,001 to BDT 900,00010%
BDT 900,001 to BDT 1300,00015%
BDT 1300,001 to BDT 1800,00020%
Above BDT 1800,00125%

Tax rates for Companies:

Types of companiesTax RatesTax Rates
(For Non-Compliance)
Publicly Traded companies
(More than 10% of paid up capital through IPO)
Publicly Traded companies
(Less than 10% of paid up capital through IPO)
Companies but not publicly traded27.50%30%
Single Person Company22.50%25%
Bank, Insurance, and Financial Institution (listed)37.50%N/A
Bank, Insurance, and Financial Institution (non-listed)40%N/A
Tobacco companies45%N/A
Mobile Phone Operator Company (listed)40%N/A
Mobile Phone Operator Company (non-listed)45%N/A

Tax rates for other than Companies:

Non-Resident Bangladeshi30%
Trust, Fund, AOP, and others27.5% (The tax rate is 30% if each transaction above BDT 500,000 & Annually above BDT 3600,000 is not transferred through a bank)
Co-operative societies under the Co-operative Societies Act 200115%
Private Institutions (Universities, Medical Colleges, Dental Colleges, Engineering Colleges, Colleges of IT-related subjects)15%

Read more: A guide to set off and carry forward of losses.

This article is written by Monir Bhuiyan, a member of ACCA (Association of Chartered Certified Accountants) and ICAB (Institute of Chartered Accountants of Bangladesh).