DoubleTaxationTaxes on salary: Bangladesh
How much tax and social security is paid on a salary in Bangladesh, what is left as take-home pay, and which special tax regimes exist.
Calculation for a gross salary of €60,000 per year
| Gross salary | BDT 8,620,614 ≈ €60,000 |
|---|---|
| Income tax | |
| Income tax | BDT 2,046,184 ≈ €14,242 |
| Take-home pay | BDT 6,574,430 ≈ €45,758 |
| Employer's labour cost | BDT 8,620,614 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
This country is not covered by OECD Taxing Wages; the calculation is ours, using the same methodology.
Special tax regimes
These regimes are not included in the calculation above: each has its own conditions.
Exemption of income from freelancing and content creation (Sixth Schedule, Part 1, Income-tax Act 2023, as amended by Finance Act 2026)
Who: Individuals earning income as freelancers or digital content creators.
Under para 21(q) of Part 1 of the Sixth Schedule, as substituted by the Finance Act 2026 (s. 157(b): 'freelancing and content creation'), income from freelancing and content creation is exempt until 30 June 2027 (the para 21 period, 1 July 2024 – 30 June 2027), provided all income (receipts) of the business is received 100% through bank transfer (para 21 proviso, as substituted by the Finance Ordinance 2025, s. 134(a)(4)).
Exemption of income from software development and Information Technology Enabled Services (ITES) (Sixth Schedule, Part 1, Income-tax Act 2023)
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).
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 (receipts) of the business is received 100% through bank transfer.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 21 and proviso; s. 163(5)(b)
Exemption of 50% of export income of individuals, firms and Hindu undivided families (Income-tax Act 2023)
Who: Individuals (and firms, Hindu undivided families) exporting goods.
50% of income from exporting goods is exempt; the rest is taxed at the regular slab rates. Conditions apply under the Act.
Exemption of income earned abroad by a Bangladeshi citizen (Income-tax Act 2023)
Who: Bangladeshi citizens earning income abroad.
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).
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 17; s. 166(1)(d); s. 167(2)
Turnover tax on gross receipts of business or profession (Income-tax Act 2023, as amended by Finance Act 2026)
Who: Persons with income from business or profession (except excluded activities).
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.
Legal basis: Income-tax Act 2023, s. 163(6) and provisos, as substituted by Finance Act 2026, s. 91
Exemption of capital gains on listed shares and units up to Tk 50 lakh (Sixth Schedule, Part 1, para 36, Income-tax Act 2023)
Who: Individuals selling shares or units of listed companies or BSEC-approved funds (not sponsors, directors or placement holders).
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.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 36
Exemption of interest on Pensioners' Savings Certificates (Sixth Schedule, Part 1, para 9, Income-tax Act 2023)
Who: Retired individuals holding Pensioners' Savings Certificates (Pensioner Sanchayapatra).
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.
Legal basis: Income-tax Act 2023, Sixth Schedule, Part 1, para 9
Tax residence
When Bangladesh treats you as a tax resident
- 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 Singapore (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 Singapore (s. 26).
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Tax year 2026-27 (1 July 2026 – 30 June 2027); rates under the Finance Act 2026 (Schedule 2, Part 1, para A), identical for tax years 2026-27 and 2027-28.
- Resident, general taxpayer (man under 65, no disability, not a new taxpayer): tax-free threshold Tk 400,000; festival bonuses are included in gross salary.
- The lesser of one-third of employment income or Tk 500,000 is automatically excluded from employment income.
- The investment rebate (section 78, Income-tax Act 2023) is excluded because it depends on voluntary investments.
- Minimum tax Tk 5,000 (where income exceeds the tax-free threshold) is uniform nationwide; there is no local income tax in Dhaka.
- There is no compulsory state social insurance for private-sector employees: a private-sector establishment may set up a provident fund under the Labour Act 2006 and must do so only if it has at least 100 permanent workers and at least two-thirds of them demand it in writing; it is released from this duty if it enrols willing workers in the Universal Pension Scheme 'Progoti' (contributions 50% employer, 50% worker). Where a fund exists, the employee pays 7–8% of basic wage and the employer the same. The fund is not a state scheme, and the Universal Pension Scheme is voluntary. No employee or employer contributions are included.
- Local taxes — location: Dhaka
- Tax period: 2026-07-01 – 2027-06-30
- Exchange rate: 1 EUR = 143.6769 BDT (Bangladesh Bank, Exchange Rate of Taka, cross rate EUR/BDT on 01/01/2026 (mid of bid 143.6414 and ask 143.7123); ECB does not publish BDT, 01/01/2026)
Sources
- Finance Act 2026 (Bangladesh Gazette, 30 June 2026), Schedule 2, Part 1, para A: tax rates for tax years 2026-2027 and 2027-2028, threshold Tk 400,000, minimum tax Tk 5,000
- Income-tax Act 2023 (Act No. 12 of 2023)
- Finance Ordinance, 2025 (Ordinance No. 28 of 2025, Bangladesh Gazette Extraordinary, 2 June 2025), s. 134(a)(7), p. 5947 — Income Tax Act, 2023, Sixth Schedule, Part 1, para 27: 'Tk 4 lakh 50 thousand' replaced by 'Tk 5 lakh' (exclusion of the lesser of one-third of employment income or Tk 5 lakh), in force from 1 July 2025
- Finance Act, 2026 (Act No. 96 of 2026, Bangladesh Gazette Extraordinary, 30 June 2026), Schedule 2, Part 1, Para A — rates for tax years 2026-27 and 2027-28 (p. 20424–20425) and Para D(2) — 30% for non-residents other than non-resident Bangladeshis (p. 20429); s. 157(b) — Sixth Schedule Part 1 para 21(q) 'freelancing and content creation' (p. 20404); s. 97 — new s. 170 (filing windows, incentive / additional tax, p. 20375–20377); s. 87 — s. 154(1) Tk 6 lakh → Tk 10 lakh (p. 20371)
- বাংলাদেশ শ্রম আইন, ২০০৬ (Bangladesh Labour Act, 2006), s. 264(1), (9), (10), as amended by the Bangladesh Labour (Amendment) Act, 2026 (Act No. 43 of 2026), s. 56
- Bangladesh Bank, Exchange Rate of Taka — data for January 2026 (EUR 01/01/26: bid 143.6414, ask 143.7123)
Data checked: 01/11/2026. An indicative calculation for a typical case. Not tax advice.