Tax residence in Bangladesh for U.S. citizens and green card holders

Bangladesh decides residence by days alone, counted in its income year (1 July – 30 June): you are resident with at least 183 days in Bangladesh, or with 90 days or more plus 365 days or more in total in the 4 preceding years (s. 2(45)(a) of the Income Tax Act, 2023); citizenship and home do not enter the test. Residents are taxed on all income arising or received in and outside Bangladesh, non-residents only on Bangladesh income — generally at 30% if they are not Bangladeshi. The United States taxes its citizens and green card holders as residents wherever they live, and Art. 4(1) of the 2004 U.S.–Bangladesh Convention lists citizenship among the residence criteria. A dual residence is resolved under Art. 4(2): permanent home; with a home in both countries or in neither, center of vital interests; then habitual abode, nationality and mutual agreement. The saving clause (Art. 1(2)) keeps U.S. tax on citizens, and Art. 23 relieves double taxation by credit in both countries.

Check your status: United States and Bangladesh

Free, no sign-up, about 3 minutes. Conclusion under U.S. law, compared with the law of Bangladesh and the tax treaty.

When Bangladesh treats you as a tax resident

Residence in Bangladesh depends only on days, counted over the Bangladesh income year (1 July – 30 June): at least 183 days, or at least 90 days plus 365 days in total in the 4 preceding years. Citizenship, home or family do not enter the test. The old Income Tax Ordinance, 1984 used 182 days; the Income Tax Act, 2023 uses 183.

With 90 to 182 days in Bangladesh in this income year, the total of the 4 preceding income years decides: 365 days or more make you resident.

As a non-resident, citizenship does not change your status, but it changes the rate: a non-resident Bangladeshi pays at the normal slab rates, other non-resident individuals at 30%.

You were in Bangladesh for at least 183 days in the income year — under s. 2(45)(a)(1) of the Income Tax Act, 2023 you are resident. Bangladesh taxes all your income arising or received in and outside Bangladesh, including income from the United States (s. 26).
You were in Bangladesh for at least 90 days in the income year and for at least 365 days in total in the 4 preceding years — under s. 2(45)(a)(2) of the Income Tax Act, 2023 you are resident. Bangladesh taxes all your income arising or received in and outside Bangladesh, including income from the United States (s. 26).

When you are a nonresident

You meet neither day test, so you are a non-resident Bangladeshi. Bangladesh taxes only income arising or received in Bangladesh, at the normal slab rates (ss. 2(4) and 26). Pay for work done in the United States is not taxable in Bangladesh — unless it is paid by the Government of Bangladesh or a local authority to you as a Bangladeshi citizen in its service (s. 27(a)).
You meet neither day test, so you are non-resident in Bangladesh. Bangladesh taxes only income arising or received in Bangladesh; as you are not a Bangladeshi, the rate is generally 30% (ss. 2(4) and 26).

Where the rules of Bangladesh clash with U.S. tax rules

Collision: resident in both Bangladesh and the United States. Bangladesh counts days in its income year (1 July – 30 June): at least 183 days, or at least 90 days plus at least 365 days in the four preceding years. U.S. residence comes from citizenship, a green card or the three-year weighted day count. If both countries treat you as resident, Art. 4(2) of the Convention decides: permanent home; with a home in both or in neither, the centre of vital interests; then habitual abode, nationality and mutual agreement. Note that under this Convention a person with a permanent home in neither country goes to the centre of vital interests, not to habitual abode. A U.S. citizen remains taxable in the U.S. whatever the result (saving clause).

What else to know

Which treaty applies: the 2004 U.S.–Bangladesh Convention. The Convention signed at Dhaka on 26 September 2004 applies to withholding taxes from 1 October 2006 and to other taxes for periods beginning on or after 1 January 2007. Neither country has the treaty modified by the MLI. Residence tie-breaker: Art. 4(2) — permanent home; with a home in both countries or in neither, the centre of vital interests; then habitual abode, nationality and mutual agreement. Saving clause: Art. 1(2); employment: Art. 16 (183 days in any 12-month period); relief: Art. 23 (credit in both countries, special rules for U.S. citizens resident in Bangladesh in Art. 23(3)).
Different tax years: the calendar year in the U.S., 1 July in Bangladesh. Bangladesh's income year runs from 1 July to 30 June; the U.S. tax year is the calendar year. Bangladesh's 183-day and 90-day tests count days in Bangladesh in its income year; the U.S. substantial presence test counts days in the calendar year with weighted prior years. The 183-day limit for salary in Art. 16(2)(a) of the Convention counts days in any 12-month period commencing or ending in the income year or taxable year concerned.
U.S. citizens resident in Bangladesh: saving clause and relief. Under the saving clause (Art. 1(2)) the United States keeps taxing a U.S. citizen on worldwide income; relief from double taxation is one of the exceptions in Art. 1(3). As a Bangladesh resident you get a Bangladesh credit for U.S. tax (Art. 23(2)), coordinated for U.S. citizens by Art. 23(3); the United States credits Bangladesh tax (Art. 23(1)) — see the U.S. foreign tax credit and exclusion in the U.S. section. Bangladesh requires the credit claim within two years after the year concerned.
Working in Bangladesh while resident in the U.S.: the 183-day rule (Art. 16(2)). Pay for work done in Bangladesh is Bangladesh-source (s. 27(a)). If the United States is your treaty residence, Bangladesh does not tax it only if all conditions of Art. 16(2) of the Convention are met: not more than 183 days in Bangladesh in any 12-month period commencing or ending in the income year or taxable year concerned; an employer that is not resident in Bangladesh; and pay not borne by a permanent establishment or fixed base of the employer in Bangladesh. Otherwise Bangladesh taxes it — at 30% if you are not a Bangladeshi — and the United States credits the Bangladesh tax (Art. 23(1)).
Non-resident foreigner: 30% on Bangladesh income, lower treaty rates need an NBR certificate. As a non-resident who is not a Bangladeshi, you pay 30% on Bangladesh-source income, usually by withholding at source (s. 119). Where the U.S.–Bangladesh Convention gives a lower rate — for example on dividends, interest or royalties — ask the National Board of Revenue for a certificate of reduced or nil deduction before the payment; it decides within 30 days of a complete application. Proof of U.S. residence is IRS Form 6166. Without a permanent establishment in Bangladesh, the tax withheld is final and you need not file a return.
Bangladeshi citizen resident in Bangladesh: U.S. earnings remitted home are exempt in Bangladesh. If you are a Bangladeshi citizen and resident in Bangladesh, income you earn by working physically abroad — for example in the United States — and bring into Bangladesh through banking channels in accordance with the foreign remittance law is not included in your total income (Sixth Schedule, Part 1, para 17); show it in the return as exempt income. Pay for remote work done from Bangladesh is not covered. The United States still taxes pay for work done in the U.S., and a U.S. citizen's worldwide income.
Year of arrival or departure: no split year in Bangladesh. Bangladesh decides residence for the whole income year (1 July – 30 June) and does not split it. If you leave Bangladesh after 183 days in the income year, you remain resident there for that year; before you leave permanently, the tax officer may require a return of income up to departure (s. 193). A U.S. citizen is taxed by the United States for the whole year. The Convention's tie-breaker applies to periods in which both countries treat you as resident.
No U.S.–Bangladesh social security (totalization) agreement. Bangladesh is not on SSA's list of U.S. totalization agreements. U.S. Social Security and Medicare taxes (or self-employment tax) apply under U.S. law, no certificate of coverage can exempt you, and periods in the two countries are not added together.

How dual residence is resolved

If both countries treat you as a resident, Art. 4(2) of the treaty applies: Convention between the Government of the United States of America and the Government of the People's Republic of Bangladesh for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at Dhaka on 26 September 2004). The tests are applied in order — permanent home, center of vital interests, habitual abode, nationality, and finally mutual agreement between the tax authorities. U.S. citizens remain taxable in the United States under the saving clause.

Terms you will come across in Bangladesh

নিবাসী (nibashi): resident — at least 183 days, or 90 days plus 365 days in the 4 preceding years
অনিবাসী (onibashi): non-resident, taxed only on income arising or received in Bangladesh
অনিবাসী বাংলাদেশি (onibashi Bangladeshi): non-resident Bangladeshi, taxed at the normal slab rates instead of 30%
আয়বর্ষ (aybarsho): income year — 1 July to 30 June
উৎসে কর (utse kor): tax deducted at source; up to 30% on payments to non-residents
জাতীয় রাজস্ব বোর্ড (NBR): National Board of Revenue; issues certificates for treaty rates

Questions

I am a U.S. citizen living in Bangladesh — do I still pay U.S. tax?

Yes. Under the saving clause (Art. 1(2)) the United States keeps taxing you on worldwide income; relief from double taxation is one of the exceptions in Art. 1(3). Bangladesh credits U.S. tax (Art. 23(2)), coordinated for U.S. citizens resident in Bangladesh by Art. 23(3), and the United States credits Bangladesh tax (Art. 23(1); Form 1116). Bangladesh requires the credit claim within two years after the year concerned.

How long can I work in Bangladesh for a U.S. employer before Bangladesh taxes my salary?

Pay for work done in Bangladesh is Bangladesh-source (s. 27(a)). If the United States is your treaty residence, Bangladesh does not tax it only if you are there not more than 183 days in any 12-month period commencing or ending in the income year or taxable year concerned, the employer is not resident in Bangladesh, and the pay is not borne by a permanent establishment or fixed base of the employer in Bangladesh (Art. 16(2)). Otherwise Bangladesh taxes it — at 30% if you are not a Bangladeshi — and the United States credits the Bangladesh tax.

I am a Bangladeshi citizen working in the United States — does Bangladesh tax my U.S. salary?

If you meet neither day test you are a non-resident Bangladeshi, and pay for work done in the United States is not taxable in Bangladesh unless the Government of Bangladesh or a local authority pays it to you as a citizen in its service (s. 27(a)). If you are resident, income you earn working physically abroad and bring into Bangladesh through banking channels under the foreign remittance law is not included in total income (Sixth Schedule, Part 1, para 17); pay for remote work done from Bangladesh is not covered. The United States taxes the pay for work done there in any case.

Sources

Legislation and official guidance

Income Tax Act, 2023 (Act No. 12 of 2023), s. 2(45)(a) — authentic English text published by NBR (S.R.O. No. 404-Law/2025) — A natural person is resident in an income year if he or she (1) was in Bangladesh for a period or periods amounting in all to at least 183 days in that year, or (2) was in Bangladesh for 90 days or more in that year and for 365 days or more in all in the 4 preceding years. The definition contains no condition of citizenship or home.
NBR Income Tax Circular 2023-2024 (12.10.2023), paras 1.1–1.2 — The slab rates for natural persons apply to all individuals except non-residents other than non-resident Bangladeshis; non-resident individuals other than non-resident Bangladeshis (not companies or associations) are taxed at 30%.
Income Tax Act, 2023, s. 26 — The total income of a resident includes all income from any source arising or received in or outside Bangladesh; the total income of a non-resident includes only income arising or deemed to arise in Bangladesh and income received in Bangladesh.
Income Tax Act, 2023, s. 2(4) — «Non-resident» means a person who is not a resident.
Income Tax Act, 2023, s. 27(a) — Income from employment, wherever paid, is deemed to arise in Bangladesh if it is earned in Bangladesh, or if it is paid by the Government of Bangladesh or a local authority in Bangladesh to a Bangladeshi citizen in its service.
Finance Act, 2026 — income tax rates (PwC Bangladesh, «Finance Act 2026: key amendments», June 2026) — Income year 2026-27: general tax-free threshold Tk 4,00,000 (women and persons aged 65 or more Tk 4,50,000; persons with disabilities and third gender Tk 5,25,000); then 10% on the next Tk 3,00,000, 15% on the next Tk 4,00,000, 20% on the next Tk 5,00,000, 25% on the next Tk 20,00,000 and 30% on the balance. Non-resident natural persons other than non-resident Bangladeshis: 30%.
Art. 4(2) of the U.S.–Bangladesh Convention (2004)
Art. 1(2)–(3) of the U.S.–Bangladesh Convention (saving clause)
Art. 16(2) of the U.S.–Bangladesh Convention
Art. 23 of the U.S.–Bangladesh Convention (relief from double taxation)
Internal Revenue Bulletin 2006-45 (entry into effect of the U.S.–Bangladesh Convention)
§ 7701(b)(3)(A); Treas. Reg. § 301.7701(b)-1(c)
PwC Worldwide Tax Summaries — Bangladesh, Corporate: Tax credits and incentives (reviewed 31.07.2026) — Foreign tax relief is available to residents only and is limited to the Bangladesh tax at the average rate on the doubly taxed income; the Deputy Commissioner of Taxes may apply the lower of the Bangladesh and the foreign average rate to such income; the claim must be made within two years after the year concerned; a treaty rate needs an NBR certificate.
Income Tax Act, 2023, s. 119 — A person paying a taxable amount to a non-resident deducts tax at the prescribed rate, not exceeding 30%; the Board may issue a certificate for no deduction or a lower rate because of a treaty or otherwise (decision within 30 days of a complete application); for a non-resident without a permanent establishment in Bangladesh the tax deducted is the final tax liability.
Income Tax Act, 2023, s. 166 — A return is mandatory if income exceeds the tax-free threshold, if the person was assessed in any of the 3 preceding years, and in other cases (sub-s. 1); it is not mandatory for a non-resident natural person without a permanent establishment in Bangladesh (sub-s. 2).
NBR — list of double taxation avoidance agreements (published 27.04.2026) — Agreements with 43 countries, including Canada, China, the Czech Republic, France, Germany, India, Italy, Japan, the Netherlands, Pakistan, Poland, Switzerland, the United Kingdom and the United States; Ukraine, Austria, Spain and Hungary are not on the list.
IRS — Form 6166, Certification of U.S. tax residency
Income Tax Act, 2023, Sixth Schedule, Part 1, para 17 — Prothom Alo, 27.09.2023 — Income earned abroad by a Bangladeshi natural person taxpayer and brought into Bangladesh in accordance with the law on foreign remittances is not included in total income; it is shown in the return as tax-exempt income.
The Daily Star — foreign remittance, freelancing and remote work income (analysis) — For the exemption under para 17 of the Sixth Schedule the work must be done physically abroad and the income brought in through banking channels; pay for remote work done from Bangladesh for a foreign employer is taxable as employment income.
Income Tax Act, 2023, s. 193 — report in The Daily Star — The assessment of a person leaving Bangladesh can be made before the end of the income year; by notice giving at least 7 days, the Deputy Commissioner of Taxes may require a return and information on income up to the probable date of departure.
SSA — U.S. international social security agreements (status)
Income Tax Act, 2023, s. 86 — The payer of salary deducts tax at source at the average rate applicable to the estimated annual total income of the recipient.
Income Tax Act, 2023, s. 170(1) (substituted by s. 97 of the Finance Act, 2026 [Act No. 96 of 2026], effective 1 July 2026) — Return of a natural person: filed 1 July – 30 September — rebate of 5% of tax payable or Tk 25,000, whichever is lower; 1 October – 31 December — no rebate or additional tax; 1 January – 31 March — additional tax of 2% or Tk 3,000, whichever is higher; 1 April – 30 June — 5% or Tk 5,000, whichever is higher. A person abroad on higher-study leave, deputation or lien, or for earning with a valid visa and permit, files within 90 days from the day of return to Bangladesh.
Income Tax Act, 2023, ss. 167 and 169(4) — A resident Bangladeshi natural person files a statement of assets and liabilities with the return; a non-resident Bangladeshi shows only assets located in Bangladesh (s. 167(3)); a non-resident Bangladeshi may file the return through the nearest Bangladesh mission (s. 169(4)).
Art. 4(2)(a) of the U.S.–Bangladesh Convention — An individual is deemed a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, or in neither, he is deemed a resident of the State with which his personal and economic relations are closer (centre of vital interests).
IRS — Technical Explanation of the U.S.–Bangladesh Convention, Art. 4 — If the permanent home test is inconclusive — a permanent home in both States or in neither — the individual is a resident of the State of his centre of vital interests; then habitual abode and nationality, and finally the competent authorities.
Art. 4(2)(b) of the U.S.–Bangladesh Convention — If the State in which he has his centre of vital interests cannot be determined, he is deemed a resident of the State in which he has an habitual abode.
Art. 4(2)(c)–(d) of the U.S.–Bangladesh Convention — If he has an habitual abode in both States or in neither, he is deemed a resident of the State of which he is a national (c); if he is a national of both States or of neither, the competent authorities settle the question by mutual agreement (d).

Updated 2026-11-04. The result is for information only and is not tax or legal advice. Tax authorities and courts may interpret the rules differently, including because of circumstances not covered here, and the law changes. Consult a qualified adviser before making decisions.

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