Tax regimes for individuals: Bangladesh

Preferential and special regimes in 21 countries for people who relocate, work for themselves, invest or draw a pension. Conditions, time limits and the legal basis for each.

Regimes: 7

Exemption of income from freelancing and content creation (Sixth Schedule, Part 1, Income-tax Act 2023, as amended by Finance Act 2026)

OpenFor the self-employed

Income from freelancing (and, since 2026, content creation) is fully exempt from income tax.

Details

Who: Individuals earning income as freelancers or digital content creators.
How it works: Income from IT freelancing is exempt under para 21(q) of Part 1 of the Sixth Schedule until 30 June 2027, provided all income, expenses and investments of the activity go through bank transfers. The Finance Act 2026 extended the exemption to freelancing in general and to content creation; the exact wording and end date of the 2026 amendment were not read in the Act.
Duration: IT freelancing: until 30 June 2027; end date of the 2026 extension — to be checked.
How to opt in: No application: show the income as exempt in the annual return; filing stays mandatory for anyone with exempt income.
Limits and risks: All income, expenses and investments must go through bank transfers; turnover tax and VAT rules are separate.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 21(q) and proviso; s. 166(1)(d); Finance Act 2026 (extension to freelancing and content creation)
Checked: November 4, 2026

Exemption of income from software development and Information Technology Enabled Services (ITES) (Sixth Schedule, Part 1, Income-tax Act 2023)

OpenFor the self-employed

Business income from the listed IT activities is fully exempt.

Details

Who: Resident or non-resident Bangladeshi individuals running a listed IT business (software development, SaaS, cyber security, data analytics, mobile apps, web, digital design, data entry, call centres, IT freelancing and others).
How it works: Income from the 19 IT activities listed in para 21 of Part 1 of the Sixth Schedule is excluded from total income for 1 July 2024 – 30 June 2027, provided all income, expenditure and investment of the business are made through bank transfers.
Duration: 1 July 2024 – 30 June 2027.
How to opt in: No application: report the income as exempt in the annual return; filing is mandatory.
Limits and risks: Only the listed activities; every receipt, payment and investment of the business must go through a bank; turnover tax on the exempt receipts is reduced proportionally, not removed.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 21 and proviso; s. 163(5)(b)
Checked: November 4, 2026

Exemption of 50% of export income of individuals, firms and Hindu undivided families (Income-tax Act 2023)

OpenFor the self-employed

50% of income from exporting goods is exempt.

Details

Who: Individuals (and firms, Hindu undivided families) exporting goods.
How it works: 50% of income from exporting goods is exempt; the rest is taxed at the regular slab rates. Conditions apply under the Act.
How to opt in: Claim it in the annual return; the bank withholds tax from export proceeds at source.
Limits and risks: Goods only (not services); the other half is taxed at slab rates; conditions not verified in the Act text.
Legal basis: Finance Act 2026 (Bangladesh): exemption of 50% of export income of individuals, firms and Hindu undivided families (amendment to the Income-tax Act 2023)
Checked: November 4, 2026

Exemption of income earned abroad by a Bangladeshi citizen (Income-tax Act 2023)

OpenOther

Foreign earned income of a citizen is fully exempt when remitted through legal channels.

Details

Who: Bangladeshi citizens earning income abroad.
How it works: Income a Bangladeshi citizen earns abroad is excluded from total income if it is brought into Bangladesh under the foreign-remittance laws (para 17 of Part 1 of the Sixth Schedule).
How to opt in: Show the income as exempt in the annual return and keep bank remittance records; filing is mandatory.
Limits and risks: Citizens only; income kept abroad or brought in outside legal channels is not covered; foreign assets must still be listed in the statement of assets.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 17; s. 166(1)(d); s. 167(2)
Checked: November 4, 2026

Turnover tax on gross receipts of business or profession (Income-tax Act 2023, as amended by Finance Act 2026)

OpenFor the self-employed

Not a relief: a floor of 1% of gross receipts when regular tax is lower; any excess can be carried forward.

Details

Who: Persons with income from business or profession (except excluded activities).
How it works: Not a relief but a minimum tax: where regular tax is lower, 1% of gross receipts is payable (separate rates for tobacco, beverages, telecom operators); the excess may be carried forward.
How to opt in: Automatic: compare regular tax with turnover tax in the annual return.
Limits and risks: Payable even at a loss; higher rates for tobacco, beverages and mobile operators; some trades are excluded.
Legal basis: Income-tax Act 2023, s. 163(6) and provisos, as substituted by Finance Act 2026, s. 91
Checked: November 4, 2026

Exemption of capital gains on listed shares and units up to Tk 50 lakh (Sixth Schedule, Part 1, para 36, Income-tax Act 2023)

OpenFor investors

Gains up to Tk 50 lakh a year are tax-free.

Details

Who: Individuals selling shares or units of listed companies or BSEC-approved funds (not sponsors, directors or placement holders).
How it works: Capital gains up to Tk 50 lakh a year from transferring listed shares or fund units are excluded from total income; gains above that are taxed.
How to opt in: Report the gain as exempt in the annual return.
Limits and risks: Listed securities and approved funds only; not for sponsors, directors or placement shares; filing remains mandatory.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 36
Checked: November 4, 2026

Exemption of interest on Pensioners' Savings Certificates (Sixth Schedule, Part 1, para 9, Income-tax Act 2023)

OpenFor pensioners

Interest fully exempt while total investment is up to Tk 5 lakh.

Details

Who: Retired individuals holding Pensioners' Savings Certificates (Pensioner Sanchayapatra).
How it works: Interest on Pensioners' Savings Certificates is excluded from total income if the total investment in them at the end of the income year does not exceed Tk 5 lakh.
How to opt in: Show the interest as exempt in the annual return.
Limits and risks: If total investment exceeds Tk 5 lakh at year end, the exemption does not apply; other savings instruments are not covered.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 9
Checked: November 4, 2026

The catalogue describes general conditions. Whether a regime fits you depends on your circumstances and the tax authority's decision.