Bangladesh Income Tax Law Amendment
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Effective from 1 July 2023, the government of Bangladesh has announced amendments to Income Tax law as per below:
Amendment of Tax-exempted amounts
| Taxpayer Category | Annual Tax-exempted Income 2022-2023 | Annual Tax-exempted Income 2023-2024 |
|---|---|---|
| General taxpayer | Tk. 300,000 | Tk. 350,000 |
| Women and Senior citizen above 65 years age | Tk. 350,000 | Tk. 400,000 |
| Physically Challenged persons | Tk. 400,000 | Tk. 475,000 |
| War-wounded gazette freedom fighter | Tk. 475,000 | Tk. 500,000 |
| Third gender taxpayers | Tk. 350,000 | Tk. 475,000 |
| The income tax-free threshold is increased for parents or legal guardians of physically challenged children/dependents by Tk. 50,000 for each child/dependent. | ||
Amendment of Tax brackets
| Annual Tax Brackets 2022-2023 | Annual Tax Brackets 2023-2024 | Tax Rates (remain unchanged) |
|---|---|---|
| First Tk. 300,000 | First Tk. 350,000 | 0% |
| Next Tk. 100,000 | Next Tk. 100,000 | 5% |
| Next Tk. 300,000 | Next Tk. 300,000 | 10% |
| Next Tk. 400,000 | Next Tk. 400,000 | 15% |
| Next Tk. 500,000 | Next Tk. 500,000 | 20% |
| On the balance | On the balance | 25% |
Amendment of previously tax-free earnings
The below earnings are now subject to Personal Income Tax:
- Valuation of Perquisite Allowance
- House Rent Allowance (received in cash)
- Rent Free Accommodation
- Conveyance Allowance (received in cash)
- Conveyance received for private use
- Free of Concessional passage (commonly known as LFA or LTA)
- Entertainment Allowance
- Medical Allowance
Introduction of Personal exemption
A new exemption has been introduced where the lower of Tk. 450,000 or 1/3 of total taxable income is exempt from Income Tax.
Non-cash benefits amendments
Notional Income (non-cash benefits) provided for accommodation and transport facility have been revised as follows:
- Acccommodation: Actual rental amount is now fully taxable
- Provided Vehicle: For vehicles with engines up to 2,500CC, Tk. 10,000 per month is now included in taxable income.
For vehicles with engines exceeding 2,500CC, Tk. 25,000 per month is now included in taxable income.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Bangladesh – Income Tax Law Amendment
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