Jul 26, 2023 2 min read

Bangladesh Income Tax Law Amendment

Name: Mercans HR Blizz
Brand: Mercans
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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.

The below earnings are now subject to Personal Income Tax:

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.

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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