Tax Deducted at Source (TDS) in Bangladesh 2025-2026

The rules for Tax Deducted at Source (TDS) in Bangladesh are primarily governed by the Income Tax Act, 2023, and the Finance Act for the relevant fiscal year. For the fiscal year (FY) 2025-2026, which corresponds to the assessment year (AY) 2026-2027, the rules and rates have been updated.

Here are some key points and examples of TDS rates for FY 2025-2026:

Key Changes and Proposals:

Income Tax Threshold: The tax-free income threshold for general individual taxpayers has been proposed to increase to BDT 375,000. This threshold is higher for specific categories of taxpayers, such as women, senior citizens, and people with disabilities.

Minimum Tax: For individuals whose total income exceeds the tax-free limit, the minimum tax is proposed to be BDT 5,000. However, for new taxpayers, the minimum amount is BDT 1,000.

Corporate Tax Rates: The corporate tax rates have seen some adjustments. For example, the rate for unlisted corporate taxpayers, firms, and associations of persons is proposed to be 27.5%.

Examples of TDS Rates for FY 2025-2026:

Capital Gains: 15%

Insurance Premium: 10%

Rental of Machinery, Equipment, etc.: 15%

Dividend: The rates vary. For a company, fund, or trust, it is 20%. For any other person, it is 30%.

Interest on Savings Account and Fixed Deposit: 20% for Trust, Association of Persons (AoP), and Company; 10% for any other person.

Supply of Goods or Execution of Contracts and Sub-contracts: The rates are on a progressive scale depending on the value of the transaction. For example, for contracts over BDT 3 crore, the rate is 5%.

Payment for Professional Services (e.g. Doctors' Fees): 10%

Commission, Discount, or Fees: The rates can vary based on the specific type of service. For example, for a travel agent's commission, it is 5%.

Important to Note:

The information above is based on proposed changes in the Finance Ordinance 2025, which may be subject to amendments before they are finalized.

TDS rules and rates are complex and can vary significantly depending on the nature of the transaction, the status of the taxpayer, and other specific conditions.

For a comprehensive and detailed list of all TDS rates and rules, you should refer to the official publications of the National Board of Revenue (NBR) of Bangladesh.

 

Disclaimer: This information is for general guidance only and does not constitute professional tax advice. You should consult a tax professional for advice tailored to your specific situation. Download Bangladesh TDS Rules 2025 by click following download button.