Corporate tax in Bangladesh is a critical aspect for any business operating in the country. Every company, whether listed, unlisted, local, or foreign, must comply with corporate tax regulations set by the National Board of Revenue (NBR). This guide provides the latest rates, filing procedures, exemptions, and compliance rules directly from NBR and other trusted sources.
What is Corporate Tax?
- Corporate tax is a direct tax on the net profits of companies.
- Applicable to resident and non-resident companies earning income in Bangladesh.
- Administered by the National Board of Revenue (NBR).
- Legal basis: Income Tax Ordinance, 1984 and related rules (NBR Official)
- Ensures companies contribute a fair share of profit to the national revenue.
Corporate Tax Rates in Bangladesh (2025–26)
| Type of Company | Tax Rate | Notes |
|---|---|---|
| Non-listed / Unlisted companies | 27.5% | Full compliance required |
| Listed companies meeting IPO conditions | 20% | Publicly traded with ≥10% shares via IPO |
| Banks, insurance, financial institutions | 37.5% | Sector-specific rates |
| Telecommunication companies | 40% | Sector-specific rates |
Note: Reduced rate applies only if all transactions are done through banking channels and compliance records are maintained.
Who Needs to Pay Corporate Tax?
Resident companies registered in Bangladesh
Foreign companies operating or earning income in Bangladesh
Branch offices and subsidiaries
Some NGOs and non-profits if engaging in commercial activities
How Corporate Tax is Calculated
Profit and Deductible Expenses
Deductible items include employee salaries, rent, utilities, depreciation, and approved bad debts.
Only NBR-approved expenses qualify.
Tax is calculated on net profit after allowable expenses.
Advance Tax and Minimum Tax
Advance tax is paid in four installments: 15 Sep, 15 Dec, 15 Mar, 15 Jun.
Late payment attracts interest and penalties.
Annual return submission reconciles advance tax.
Special Exemptions and Incentives
Export-oriented industries (RMG, leather, etc.) may receive tax rebates.
IT and software companies may enjoy tax holidays.
Green-certified factories may have reduced rates.
Companies operating within Special Economic Zones (SEZ) may receive additional incentives (NBR Circular).
Filing and Compliance Procedure
Obtain TIN / e-TIN.
Prepare audited financial statements.
File annual returns by 15th July (if fiscal year ends 31st Dec).
Maintain all transactions via banking channels.
Submit advance installments on time.
Recent Updates by NBR for 2025–26
Merchant banks’ tax rate for FY 2025–26: 27.5%
Listed companies enjoy 20% rate if IPO conditions are met
Non-listed companies remain at 27.5%
Common Mistakes to Avoid
Not using banking channels for all transactions
Filing returns late → leads to penalties and interest
Missing eligibility for incentives
Submitting incomplete or unaudited accounts
Common Questions About Corporate Tax
Q1: What is the corporate tax rate in Bangladesh for 2025–26?
A1: Non-listed companies: 27.5%, listed companies: 20% if IPO conditions are satisfied.
Q2: Do foreign companies pay corporate tax in Bangladesh?
A2: Yes, foreign entities earning in Bangladesh are subject to corporate tax.
Q3: Are IT companies exempt from corporate tax?
A3: Certain IT & software companies may receive tax holidays under NBR rules.
Q4: What happens if a company misses the filing deadline?
A4: Late submission leads to penalties, interest, and potential legal consequences.
Conclusion
Corporate tax in Bangladesh is essential for business compliance. For 2025–26, the rates are:
- Non-listed companies: 27.5%
- Listed companies: 20% (if IPO conditions are met)
Compliance with NBR rules, timely filing, and proper accounting ensures businesses avoid penalties and maximize eligible tax benefits.
Need expert help with Corporate Tax in Bangladesh: 2025–26? Contact Rashel’s Law Desk for professional guidance on tax planning, filing, compliance, and representation.
