The Government of Bangladesh has introduced income tax holiday till 2034 to private sector power generation companies which will go into commercial operation by the next three years.
On 09 January 2020, the National Board of Revenue published a statutory regulatory order (SRO) offering five types of tax benefits to the power companies up to 15 years, except for coal-based ones, which would go into commercial operation between January 1, 2020 and December 31, 2022. The income tax holiday and other tax benefits were applicable only for those power companies which came into commercial operation by December 31, 2019.
The private power generation companies, which will come into operation by December 31, 2022, will be exempted from payment of income tax on their incomes derived from power plants up to December 31, 2034, on payable interest against foreign loans, on royalties, technical know-how and technical assistance fee and capital gain to be derived from transfer of shares.
Foreign employees of those companies will also be entitled for tax exemption up to three years from the date of their arrival in Bangladesh.
