Business taxes in Bangladesh: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole proprietor Sole proprietorship (একক মালিকানা ব্যবসা)
You run the business yourself and are liable for its debts with all your assets; there is no separate legal entity. Business income is added to your total income and taxed at the personal slab rates.
Requirements
Trade licence from the city corporation or paurashava, renewed every year; advance income tax is collected at issue or renewal: Tk 3,000 (Dhaka, Chattogram), Tk 2,000 (other city corporations), Tk 1,000 (district-headquarters paurashava), Tk 500 (other paurashavas) (s. 131); proof of submission of return (PSR) is required (s. 264).
e-TIN and an annual return by 30 November after the income year ending 30 June (Tax Day, s. 2(23)(a)); filing is mandatory if income exceeds Tk 400,000 or there is tax-exempt income (s. 166(1)).
A BIN (VAT registration) or an enlistment certificate is now mandatory to renew a trade licence, open a business bank account, take a loan, open an MFS merchant account or join a trade body (VAT Act 2012, s. 4(3), inserted by Finance Act 2026, s. 3).
Sole proprietorSole proprietorship (একক মালিকানা ব্যবসা) — Income-tax Act 2023
Profit is taxed at the personal slab rates: 0% up to Tk 400,000, then 10–30%; minimum tax Tk 5,000. If the tax is less than 1% of gross receipts, 1% is paid instead (turnover tax).
Conditions
Income from software development and ITES listed in the Sixth Schedule (Part 1) is exempt until 30 June 2027 if the statutory conditions are met; from 2026-27 freelancing and content creation are exempt too. Income tax is then 0 and turnover tax is reduced proportionally. The calculation does not apply this exemption.
Turnover tax paid in excess of income tax is carried forward and set off against tax of later years.
A wealth surcharge (10–35% of tax) applies if net assets exceed Tk 4 crore; it is not included.
VAT: registration is required above Tk 5 million turnover (from Tk 3 million — enlistment for VAT turnover tax); VAT is not included in the calculation.
Caveat: the calculation charges the 1% turnover tax from the first taka. The press has reported an exemption for turnover up to Tk 2 crore, but no such NBR order was found; if the exemption applies, the tax will be lower.
Sole proprietorSole proprietorship — small or medium enterprise producing goods, income exempt (Income-tax Act 2023, Sixth Schedule, Part 1, para 24)
Income of a small or medium enterprise producing goods is exempt from income tax if annual turnover does not exceed Tk 50 lakh (Tk 5 million); turnover tax is reduced in proportion, so nothing is due.
Conditions
Only for producing goods; the enterprise must be registered with the SME Foundation as a small or medium enterprise. The limit is Tk 70 lakh if the owner is a woman or a person with a disability (the calculation uses Tk 50 lakh).
A return must still be filed (s. 166(1)(d)); the trade licence, VAT (BIN or enlistment) and the advance tax on trade licence renewal remain.
Company (OPC / Ltd) One Person Company / private limited company (Companies Act 1994)
A legal entity registered with the Registrar of Joint Stock Companies and Firms (RJSC); owners are liable only up to their shares. A single owner forms a One Person Company; a private limited company needs at least two shareholders.
Requirements
Registration with RJSC; the company needs its own TIN, trade licence and BIN.
Return by Tax Day: the 15th day of the seventh month after the year end — 15 January for a year ending 30 June (s. 2(23)(b)).
The return must include financial statements audited and certified by a chartered accountant (s. 73, s. 169(2)).
CompanyOne Person Company / private limited company (Companies Act 1994) — Income-tax Act 2023
The company pays 27.5% of profit (25% if every transaction in the year goes through the bank), but not less than 1% of gross receipts. Dividends are added to the owner's income at the slab rates; 15% is withheld on payment.
Conditions
A single owner registers a One Person Company; a private limited company needs at least two shareholders. The tax is the same.
The 25% rate instead of 27.5% applies if all of the company's transactions in the year are made by bank transfer; the calculation uses 27.5%.
The 15% withheld from dividends is an advance: it is credited against the owner's tax, and any excess is refunded or carried forward.
Income from software development and ITES listed in the Sixth Schedule (Part 1) is exempt until 30 June 2027 if the statutory conditions are met; from 2026-27 freelancing and content creation are exempt too. Income tax is then 0 and turnover tax is reduced proportionally. The calculation does not apply this exemption.
VAT: registration is required above Tk 5 million turnover (from Tk 3 million — enlistment for VAT turnover tax); VAT is not included in the calculation.
Software development, IT services, consulting for companies and entrepreneurs.
Income from software development, SaaS, cyber security, data analytics, mobile apps, web development, IT support, digital graphics design, IT freelancing etc. is exempt until 30 June 2027 if all income (receipts) of the business is received 100% by bank transfer (Sixth Schedule, Part 1, para 21); from 2026-27 also freelancing and content creation. Not applied in the calculation.
Turnover tax of 1% of gross receipts applies if income tax is lower, regardless of profit or loss; the excess is carried forward (s. 163(6)).
Exempt income does not remove the duty to file a return (s. 166(1)(d)).
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
There is no general exemption: of ordinary business services only digital graphics design, data entry and processing, call centres and document digitisation are on the para 21 list; marketing, translation, engineering and accounting are taxed at slab rates.
Tax withheld by clients from fees is now an advance: any excess is refunded or carried forward (s. 163(1)–(2) as replaced by Finance Act 2026); only deductions under s. 138 and 139 are final.
Turnover tax of 1% of gross receipts applies if income tax is lower, regardless of profit or loss; the excess is carried forward (s. 163(6)).
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Turnover tax of 1% of gross receipts applies if income tax is lower, regardless of profit or loss; the excess is carried forward (s. 163(6)).
A trade licence is required; advance tax of Tk 500–3,000 depending on the city is paid at issue or renewal (s. 131), and proof of submission of return is needed (s. 264).
A BIN or VAT enlistment certificate is now needed to renew the trade licence, keep a business bank account and an MFS merchant account (Finance Act 2026, s. 3); VAT is not included in the calculation.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
With a low markup the 1% turnover tax often exceeds income tax: on receipts of Tk 1 crore (10 million) at least Tk 100,000 is due, even at a loss (s. 163(6)); the excess is carried forward.
Turnover tax does not apply to commission business, delivery-order (DO) business, money exchange or trade in gold, silver, jewellery, precious stones or platinum (s. 163(6), proviso).
A BIN or VAT enlistment certificate is now needed to renew the trade licence, keep a business bank account and an MFS merchant account (Finance Act 2026, s. 3); VAT is not included in the calculation.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
A small or medium enterprise producing goods with turnover up to Tk 50 lakh (Tk 70 lakh if owned by a woman or a person with a disability) and registered with the SME Foundation is exempt from income tax (Sixth Schedule, Part 1, para 24 as replaced by Finance Act 2026) — shown as a separate option.
Turnover tax is 1%; an industrial undertaking pays 0.2% in its first 3 years of commercial production; makers of tobacco products pay 3%, of carbonated and sweetened beverages 2.5% (s. 163(6)).
Exempt income does not remove the duty to file a return (s. 166(1)(d)).
Assumptions
One owner, resident of Bangladesh, no employees, no other income, no children; full tax year 2026-27 (1 July 2026 – 30 June 2027); general tax-free threshold of Tk 400,000 (not a woman, under 65).
No investment rebate and no ITES / freelancing exemption; net assets under Tk 4 crore (no wealth surcharge); there are no state social contributions; VAT is not included.
Company: the owner takes no salary; rate 27.5%; profit after tax is either fully paid out as dividends (taxed in the owner's hands at the slab rates) or retained.
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