Understanding the tax residency rules is crucial for anyone spending time or conducting business in Bangladesh. This article covers the complete framework governing individual tax residence in Bangladesh for 2025, based entirely on currently available data and legal criteria.
Key Tax Residency Criteria in Bangladesh
The classification of individuals as tax residents or non-residents determines their tax obligations in Bangladesh. Residency status is assessed each tax year under specific rules laid out by the authorities. Below is a structured summary of the main tax residency criteria applied for 2025:
| Residency Rule | Description | Threshold (Days) |
|---|---|---|
| 183-Day Rule | An individual is considered tax resident if present in Bangladesh for at least 183 days in the tax year. | 183 days |
| 90/365-Day Rule | Alternatively, an individual is deemed resident if present for at least 90 days in the current tax year and at least 365 days cumulatively over the preceding four years. | 90 days (current year) + 365 days (preceding 4 years) |
| Extended Temporary Stay | Temporary presence meeting above thresholds triggers residency, even without permanent ties. | N/A (must meet one of the day-count thresholds) |
| Other Factors Considered | Bangladesh does not consider center of economic interest, habitual residence, family center, or citizenship for tax residency determination. | N/A |
Minimum Days Requirement
Bangladesh applies a minimum stay requirement: individuals physically present for at least 90 days in the current year and at least 365 days in total over the preceding four fiscal years may qualify as residents, even if they do not meet the standard 183-day rule. This dual-path approach may result in residency even for those with intermittent stays.
Summary Table: Bangladesh Tax Residency Rules 2025
| Rule Name | Applies? | Details |
|---|---|---|
| 183-Day Rule | Yes | Present for 183 days in a tax year |
| Center of Economic Interest | No | Not considered for residency |
| Habitual Residence | No | Not considered for residency |
| Center of Family | No | Not considered for residency |
| Citizenship | No | Not considered for residency |
| 90/365-Day Rule | Yes | Present 90 days in current year and 365 days in prior 4 years |
| Extended Temporary Stay | Yes | Temporary stay meeting above criteria leads to residency |
What Is Not Considered for Tax Residency in Bangladesh?
Several criteria commonly used in international tax law, such as center of economic interest, habitual residence, family ties, and citizenship, are not relevant for Bangladesh’s tax residency status in 2025. Only the physical presence (based on the specified days) is considered by the authorities.
Special Scenarios Under the Bangladesh Residency Framework
- Intermittent Visitors: Those who come and go from Bangladesh should carefully track both their annual presence and total days over the preceding four years to understand potential residency exposure.
- Temporary Assignments: Extended temporary stays may lead to tax residency if the combined day thresholds are met, regardless of employment or economic interest.
Pro Tips for Managing Tax Residency in Bangladesh
- Keep Detailed Records: Precisely track entry and exit dates for each stay in Bangladesh every year, as even short visits add up if frequent.
- Understand Dual Criteria: Remember that both the 183-day rule and the combination 90/365 rule can trigger residency. Use a spreadsheet or calendar tool to monitor your exposure.
- Plan Extended Stays Wisely: If you anticipate multiple trips over several years, review your totals to avoid unintended residency obligations.
- Review at Year-End: At the close of each calendar year, review your current and past four years’ stay durations for potential residency triggers.
Additional Resources
To summarize, Bangladesh uses a straightforward physical presence test rooted in defined day-counts, with no consideration for economic, habitual, or familial ties. Both the 183-day rule and the 90-plus-365-day rule are applied, making it vital to monitor your time in the country closely. Keeping organized records and staying informed of annual changes can help avoid unintended tax residency and related obligations.