Bangladesh tax and VAT laws

Table of content
• What is Tax?
• Acts on Tax
• Types of Tax in Bangladesh
• Tax on employment
• Tax resident employees
• Tax resident Business
• What is Vat?
• Acts on Vat
• Who pays Vat?
• What is the rate of Vat?
What is Tax?
• A compulsory contribution
• A State revenue
• Levied by government
• On workers in come
• & Business profit

"higher taxes will dampen consumer spending"

Acts on Tax

3 Gift tax act 1990

tax
Act The travel tax act 2003

IT ordinance, 1984 as
amended up to July, 2015
Types of Tax in Bangladesh

Customs Income Tariff

Vat Excise Duty Surcharge
Duty Tax schedule
Tax on employment
An employee is considered to be a tax resident if:
◎ Been in Bangladesh for 182 days and above
◎ 90 days or more in the relevant tax year
◎ 365 days or more in 4 years preceding the relevant tax
year
Tax resident employees
Resident employees must pay tax on their worldwide income as per
Income Tax rate

First BDT 250000 0%

Next BDT 400000 10%

Next BDT 500000 15%

Next BDT 600000 20%

Next BDT 3000000 25%

Rest 30%
Tax Resident Company

Foreign
Bangladeshi
Company in
Company
Bangladesh
What is VAT?
◎ Consumption Tax
◎ On goods and services
◎ Levied at each state of supply chain
◎ From initial production to point of sale
Acts on VAT?

3 Value added tax,1991

tax
Act Value added tax and
supplementary duty act, 2012

Development surcharge and

levy act, 2015
What is the rate of VAT?
◎ Uniform rate of VAT is 15%
◎ Applies for both goods and services
◎ With an annual Turn overrate of BDT 2 million and
above
◎ 4% is levied where annual turn over is less that 2
million.
Recap
We have learned about
• What is Tax?
• Acts on Tax
• Types of Tax in Bangladesh
• Tax on employment
• Tax resident employees
• Tax resident Business
• What is Vat?
• Acts on Vat
• Who pays Vat?
• What is the rate of Vat?