Jul 26, 2023 1 min read

Bangladesh Income Tax Law Amendment

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 CategoryAnnual Tax-exempted Income 2022-2023Annual Tax-exempted Income
General taxpayerTk. 300,000Tk. 350,000
Women and Senior citizen above 65 years ageTk. 350,000Tk. 400,000
Physically Challenged personsTk. 400,000Tk. 475,000
War-wounded gazette freedom fighterTk. 475,000Tk. 500,000
Third gender taxpayersTk. 350,000Tk. 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 2022-2023Annual Tax Brackets 2023-2024Tax Rates (remain unchanged)
First Tk. 300,000First Tk. 350,0000%
Next Tk. 100,000Next Tk. 100,0005%
Next Tk. 300,000Next Tk. 300,00010%
Next Tk. 400,000Next Tk. 400,00015%
Next Tk. 500,000Next Tk. 500,00020%
On the balanceOn the balance25%

Amendment of previously tax-free earnings

The below earnings are now subject to Personal Income Tax:

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:

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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