Bangladesh

Last update: 2026-05-17

BD BDT৳ Bengali

Pros
Competitive labor costs and massive workforce for high-scale manufacturing ventures
Generous tax holidays and fiscal incentives within designated special economic zones
Expansion of digital connectivity and high growth in mobile-based financial technology sectors

Cons
Systemic corruption and burdensome red tape within government administrative processes
Unreliable energy supply and logistical bottlenecks for efficient industrial operations
Weak protection of property rights and frequent state interference in market dynamics

Personal income

0 → 30%

progressive

Corporate

20 → 20%

progressive

Capital gains

15 → 15%

progressive

VAT (standard)

15%

standard rate

i 7.3 PRIVACY GRADE

i 5.3 VERY LOW TAX

i 2.3 HOLDING

i 2.2 DIVIDEND PIPELINE

i 2 CRYPTO HAVEN

i 2 EASY CITIZENSHIP

─ On this page

01 Will Bangladesh tax what you earn? 02 Will Bangladesh tax what you own? 03 Is it easy to run a company in Bangladesh? 04 Is Bangladesh good for your holding company? 05 What does it cost to come and go from Bangladesh? 06 Will Bangladesh protect your privacy? 07 Is Bangladesh itself a liability? 08 Will you feel free in Bangladesh?

01/08

Will Bangladesh tax what you earn?

●income tax ●tax residency ●territorial system

YES, A LOT. Bangladesh taxes personal income heavily, peaking at 30%. Standard residency rules apply (day-count, economic interest, habitual abode), so anyone who actually lives here pays the full schedule. The state shows up.

Personal income taxi

0 → 30%

progressive · 6 brackets

Income simulatori

Income

Tax due

Effective rate

all-in

Marginal rate

+10%

Net wealth above BDT 40 million to BDT 100 million, or ownership of more than one motor car, or ownership of house property with aggregate area > 8,000 sq. ft.

+20%

Net wealth above BDT 100 million to BDT 200 million

+30%

Net wealth above BDT 200 million to BDT 500 million

+35%

Net wealth above BDT 500 million

Tax residence testi

90/183 days

● 183-day rule

○ Economic interest

○ Family centre

○ Habitual abode

● Extended-stay test

● Just one rule above is enough to make you tax-resident here.

02/08

Will Bangladesh tax what you own?

●capital gains ●wealth tax ●inheritance ●dividends ●interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 15% in Bangladesh, but the country also applies an annual wealth tax (top rate 35%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi

15%

progressive · +30% If capital gains are from transfer of assets within 5 years of acquisition, taxed at normal progressive income tax rates (up to 30%)

Dividend taxi

10%

flat · +5% If recipient does not have an e-TIN (electronic Taxpayer Identification Number) · +20% Non-resident individual (total 30% for non-residents)

Interest incomei

30%

progressive

Wealth taxi

0 → 35%

progressive · threshold 325,360

Crypto · tax regimei

Regime

UNREGULATED

Fallback rate

30%

Cryptocurrency is officially prohibited by the Bangladesh Bank (Central Bank) under the Foreign Exchange Regulation Act 1947 and Anti-Money Laundering laws. While no specific crypto tax code exists, the National Board of Revenue (NBR) treats all income as taxable under general progressive income tax rules, which reach a maximum rate of 30% for individuals in the 2024-25 assessment year. Although the activity is illegal, general tax principles in Bangladesh dictate that income from any source is subject to tax. Users risk criminal prosecution, including imprisonment, for possession or trading.

Crypto-to-cryptoi

TAXABLE

each swap counts as a disposal — gains realised at every trade

FATF travel rulei

NOT SIGNED

no information-sharing obligation on VASP transfers

Inheritance systemi

NONE

no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.

03/08

Is it easy to run a company in Bangladesh?

●corporate tax ●criminal liability ●public registry ●VAT ●IP box

YES, BUT TAXED. Corporate tax in Bangladesh lands at a moderate 20% with no IP-box softening. Standard accounting, VAT at 15, standard administrative weight. Nothing exotic in either direction.

Corporate taxi

20%

progressive · +2.5% Company producing all types of tobacco items, including cigarette, bidi, chewing tobacco, and gul

IP Box · Patent Boxi

NONE

no IP regime · IP income taxed under standard corporate rules

Misuse of corporate assetsi

NO CRIMINAL LIABILITY

Civil Matter / Penal Code 1860, Section 405

In Bangladesh, which follows a Common Law system, the 'Misuse of Corporate Assets' by a sole shareholder-director of a solvent company is generally not a criminal offense. Under Section 405 of the Penal Code 1860 (Criminal Breach of Trust), the prosecution must prove 'dishonest intent' to cause 'wrongful loss' to another. Since the sole shareholder is the ultimate beneficial owner of the company's residual assets, their consent to the use of funds typically negates the element of dishonesty required for a criminal conviction. Such acts are instead treated as civil breaches of fiduciary duty, tax irregularities (unreported dividends), or accounting violations under the Companies Act 1994.

Shareholders privacyi

PUBLIC PAYWALL

Registrar of Joint Stock Companies and Firms (RJSC)

Directors privacyi

PUBLIC PAYWALL

Registrar of Joint Stock Companies and Firms (RJSC)

Incorporation costi

Private Limited Company

RJSC Registration and Filing Fees USD 163

Stamp Duty on MOA and AOA USD 20

Trade License and Local Permits USD 122

BIDA Registration Fee USD 81

Professional Legal and Incorporation Services USD 956

Total USD 1,342

VAT standard ratei

15%

4 distinct tiers in force

0% 5% 10% 15%

Food & drink

15%

alcohol

Hospitality

15%

hotels

restaurants

Digital & telecom

15%

digital

15%

broadcast

Construction

10%

construction

Finance

insurance

04/08

Is Bangladesh good for your holding company?

●treaty network ●participation exemption ●withholding

NOT REALLY. Bangladesh has a moderate 34-strong treaty network. Without a participation exemption, dividends from subsidiaries land in the corporate schedule (20%): workable for operational subsidiaries, much weaker as a pure holding vehicle.

Territorial systemi

Individuals

WORLDWIDE

Corporates

WORLDWIDE

Individuals: worldwide income taxation regardless of source. Corporates: worldwide.

Participation exemptioni

NONE

no dividend participation exemption regime

CFC rulesi

NONE

no controlled foreign corporation regime · foreign-source corporate income out of scope

WHT · dividendsi

20%

non-resident outbound

WHT · interest

20%

non-resident outbound

WHT · royalties

20%

non-resident outbound

Tax-haven WHT

—

no punitive rate on record

Treaties signedi

active

Treaties pending

in negotiation

Tax treaty networki

origin · BD 0% > 0% no treaty

⌖

Inspect a country

Hover any country on the map to read its withholding-tax treaty with BD.

Country	Status	Dividends	Interest	Royalties

∅ // no treaties match

05/08

What does it cost to come and go from Bangladesh?

●exit tax ●territorial system ●dual citizenship

SOME. Bangladesh taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi

NONE

no triggers active · residence change tax-free · no deemed-disposal mechanism

Dual citizenship

FORBIDDEN

naturalisation requires renouncing existing citizenship

Citizenship paths

● Residence

○ Marriage

○ Birth

○ Descent

○ Investment

06/08

Will Bangladesh protect your privacy?

●info exchange ●corporate registries

YES. Bangladesh has signed few exchange frameworks, so foreign tax authorities won't routinely see what you do here. But corporate registries are public: ownership and directorships are queryable by anyone with a browser. Privacy from abroad, transparency at home.

Multilateral reporting frameworks 0/10 active

CRS

—

CARF

—

FATCA

—

MLI

—

BEPS

—

MAAC

—

GLOBAL FORUM

—

EOIR

—

CRYPTO-CARF

—

CRYPTO TRAVEL RULE

—

07/08

Is Bangladesh itself a liability?

●blacklists ●FATF standing

NO. Bangladesh carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere

FATF

grey / black list

non-cooperative list

FRANCE

ETNC list

SPAIN

tax-haven list

PORTUGAL

favourable regimes

BRAZIL

low-tax list

08/08

Will you feel free in Bangladesh?

●press freedom ●crypto ●CBDC ●EU

NO. Press freedom in Bangladesh is restricted (RSF rank #149). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi

149/180

score 33 · ↑ 16 ranks year-on-year

Central bank digital currencyi

Program	Status	Cross-border	Sources
Bangladesh CBDC Exploring CBDC as an alternative to ‘risky’ private digital currencies. Bangladesh Bank	RESEARCH	—	announce →

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Bangladesh. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.

Botswana BW → Egypt EG → Peru PE →

NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

Uzbekistan UZ → Iraq IQ → Timor-Leste TL →

NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

Mozambique MZ → Pakistan PK → Bhutan BT →