This article details the corporate tax framework applicable to businesses operating in Bangladesh for the year 2025. The information provided here is based solely on the most current official sources, focusing on taxable corporate income, applicable rates, and specific surtaxes affecting select industries.
Overview of Corporate Tax in Bangladesh
In Bangladesh, corporate income tax is assessed on profits earned by companies registered or conducting business activities in the country. The corporate tax regime follows a progressive structure, as categorized by the national taxation authorities, with income thresholds and rates specifically outlined for companies domiciled in Bangladesh. All figures below are presented in Bangladeshi Taka (BDT).
Corporate Income Tax Rate Structure (2025)
While the Bangladeshi corporate tax system is classified as progressive, for the current tax year the available data indicates a single applicable rate across all corporate income levels. This could reflect policy continuity or a simplified approach in the present evaluation cycle. If updated information becomes available, consult the National Board of Revenue (Bangladesh) for the latest publications.
| Taxable Income Bracket (BDT) | Rate (%) |
|---|---|
| BDT 0+ | 20% |
Note: For reference, 1 USD ≈ 110 BDT (mid-market rate, January 2025; BDT 1,000,000 ≈ $9,090 USD).
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Surtaxes for Specific Industries
Banks, insurance companies, and production companies may encounter supplemental tax rates based on their profile. In particular, the production or processing of tobacco products is subject to an additional surtax. This targeted fiscal measure aims to address public health concerns.
| Condition | Surtax Rate (%) |
|---|---|
| Company producing all types of tobacco items, including cigarette, bidi, chewing tobacco, and gul | 2.5% |
Therefore, qualifying companies in the tobacco sector may face a combined tax rate of 22.5% (core rate of 20% plus surtax of 2.5%).
Assessment and Key Features
- Type: Progressive regime (though only a single rate is currently applied)
- Assessment Basis: Corporate profits, as defined by Bangladeshi law
- Applicable to: Domestic and (subject to treaty provisions) foreign entities with sourced income in Bangladesh
Currently, there are no published data on income brackets with variable rates, minimum or maximum holding periods, or further rate progressions. This simplification may streamline compliance for most corporate taxpayers operating within the jurisdiction.
Pro Tips for Corporate Tax Compliance in Bangladesh
- Ensure rigorous documentation of all income and expenses, as tax authority audits in Bangladesh can require detailed substantiation of deductions and business activities.
- Companies involved in or planning entry into the tobacco sector should proactively factor the additional 2.5% surtax into forward-looking tax planning calculations for accurate cash flow projections.
- Regularly review official updates at the National Board of Revenue website to stay informed of any mid-year changes or executive orders affecting corporate tax rates or reporting requirements.
- When calculating total corporate tax liabilities, always verify whether industry-specific surtaxes or sectoral levies may apply to your business profile.
Further Information
For the most reliable and up-to-date details on Bangladesh’s corporate tax regime, consult the National Board of Revenue (NBR). Their main portal provides official guidelines, circulars, and contact information for professional tax queries within Bangladesh.
In summary, Bangladesh applies a straightforward 20% corporate tax rate across all levels of taxable income for 2025, with an additional surtax only for companies in the tobacco sector. Company planning and compliance are simplified by the lack of variable brackets or thresholds, but businesses should remain attentive to periodic regulatory updates and sectoral surtaxes that may affect their specific industry. Careful documentation and proactive compliance remain best practices for all entities operating within the Bangladeshi corporate tax environment.