The Bangladesh National Board of Revenue (NBR) has announced a series of tax incentives aimed at encouraging exports and enhancing the financial sector. These initiatives, formalised through multiple notifications, provide substantial tax relief for exporters and financial entities, reflecting the government’s strategic focus on economic growth.
Export-Related Tax Benefits
The NBR’s Notification SRO No. 44; issued on 4 March, 2024; outlines updated regulations for tax exemptions and reduced rates on income derived from the export of goods.
Key provisions include:
- Individuals exporting goods receive a 50% income tax exemption.
- Companies exporting goods benefit from a reduced tax rate of 12%.
- Companies exporting from LEED Certified factories enjoy a further reduced tax rate of 10%.
To qualify, exporters must hold a valid Tax Identification Number (TIN) and comply with the Income Tax Act 2023.
Any exporter fined for environmental regulation violations will be taxed at the standard rate for that year.
These benefits are valid until 30 June, 2028.
Additional financial sector incentives
In a move to further stimulate economic activities, the NBR has issued several other notifications:
- Notification SRO No. 49; dated 13 March, 2024; offers a reduced tax rate of 15% on income from mutual fund management fees earned by asset management companies. This rate is effective until the fiscal year 2026-2027.
- Notification SRO No. 50; dated 13 March 2024; reduces the source tax on exports of leather and leather products from 1.0% to 0.5%. This reduction is valid until 30 June, 2025.
- Notification SRO No. 100; issued on 22 April, 2024; grants an exemption from tax on interest or profit received from offshore banking units (OBUs) by any depositor or non-resident lender. This exemption is effective immediately and has no specified end date.
