25/06/2026
The Bangladesh national budget introduces a revised tax regime. The tax-free threshold is raised to BDT 375,000, but the initial 5% tax slab was abolished, shifting lower-tier earners to a 10% rate. Taxpayers can now file returns year-round, with financial incentives for early filing and penalties for delays.
Key Personal Income Tax Changes:
Tax-Free Income Threshold: Raised to BDT 375,000 for general taxpayers (up from BDT 350,000). Higher limits apply for women, senior citizens, and persons with disabilities.
Abolition of Lowest Slab: The lowest tax slab of 5% has been removed. The first taxable income increment above the threshold is now taxed at 10%
Revised Income Tax Slabs:
Up to BDT 375,000: 0%
Next BDT 300,000: 10%
Next BDT 400,000: 15%
Next BDT 500,000: 20%
Next BDT 2,000,000: 25%
Remaining balance: 30%
Investment Rebates: The eligible investment rebate rate has been reduced from 15% to 10%, and the maximum investment allowance for rebates has also been capped.
Year-Round Return Filing: Taxpayers can submit returns throughout the year, with a 5% tax rebate (up to BDT 25,000) for filing between July and September. Late filers in the third or fourth quarters face an additional tax of 2% to 5%
Minimum Tax: A flat minimum tax of BDT 5,000 applies to individuals with income exceeding the tax-free limit, with a BDT 1,000 minimum proposed for new taxpayers.
Making your Investment for tax rebate by 30 June 2026.
