Key Changes in the Finance Ordinance 2025
The Finance Bill 2025, approved by the Advisory Committee on June 30, 2025, introduces several key amendments to the nation’s tax laws. These reforms are designed to increase revenue, expand the tax net, and support sustainable economic growth. A summary of the major changes is provided below:
|
Total Income (BDT)
|
Tax Rate (2025)
|
|---|---|
|
First 350,000
|
Nill
|
|
Next 100,000
|
5 %
|
|
Next 400,000
|
10 %
|
|
Next 500,000
|
15 %
|
|
Next 500,000
|
20 %
|
|
Next 2,000,000
|
25 %
|
|
On rest of the Income
|
30 %
|
Note:
- The basic exemption limit for General Tax Payers is BDT 350,000
- The basic exemption limit for women and senior citizens aged 65 years or above is BDT 400,000.
- The basic exemption limit for taxpayers with disabilities is BDT 475,000.
- The basic exemption limit for war wounded gazette freedom fighters is BDT 500,000.
- The basic exemption limit for third-gender taxpayers is BDT 475,000.
- The basic exemption limit for the parents or legal guardian of a person with disability increases by an additional BDT 50,000.
NRB’s who are not Bangladeshi citizens
NRB who are not Bangladeshi citizens are taxable at the maximum rate (i.e. 30%).
Surcharge on total income tax
A surcharge is payable on the tax by the taxpayer if one’s net worth exceeds the prescribed threshold. The rates of surcharge are as follows:
|
Net wealth
|
Rate
|
|---|---|
|
Up to BDT 40 million
|
Nil
|
|
Above BDT 40 million to BDT 100 million.
|
10%
|
|
Above BDT 100 million to BDT 200 million
|
20%
|
|
Above BDT 200 million to BDT 500 million
|
30%
|
|
Above BDT 500 million
|
35%
|
Minimum tax to be applied in case total income exceeds tax-free threshold
Minium Tax Payable by Individuals
|
Area of Residence
|
Minimum Tax
|
|---|---|
|
Dhaka North and South City Corporation and Chittagong City Corporation
|
5,000
|
|
Any Other city corporation
|
4,000
|
|
Other area not being a city corporation
|
3,000
|
Rates of Environmental Surcharge
|
Description of Motor Vehicle
|
Rate of Environmental Surcharge for each Vehicele (BDT)
|
|---|---|
|
Up to 1500 cc
|
25,000
|
|
More than 1500 cc but Up to 2000 cc
|
50,000
|
|
More than 2000 cc but Up to 2500 cc
|
75,000
|
|
More than 2500 cc but Up to 3000 cc
|
150,000
|
|
More than 3000 cc but Up to 3500 cc
|
200,000
|
|
More than 3500 cc
|
350,000
|
- This surcharge will apply to natural individual assessees owning more than one motor vehicles. Environmental surcharge is applicable in addition to the tax for motor vehicles under section 153 payable at the time of registration/fitness renewal of motor vehicles, and cannot be refunded nor be adjusted with any other tax liability.
- Here, motor vehicle excludes bus, minibus, coaster, prime mover, truck, lorry, tank lorry, pick-up van, human hauler, autorickshaw and motor cycle.
WITHHOLDING TAX RETURNS
(a) Government ministries, divisions, and directorates are no longer required to submit withholding tax returns.
(b) Withholding tax returns must now be submitted quarterly instead of monthly, according to the following schedule:
|
Submission Deadline
|
Applicable Period
|
|---|---|
|
25 October
|
July, August, September
|
|
25 January
|
October, November, December
|
|
25 April
|
January, February, March
|
|
25 July
|
April, May, June
|
Corporate Income Tax Rates (AY 2025–2026)
|
Company Type
|
Standard Rate
|
Reduced Rate (upon compliance)
|
|---|---|---|
|
Publicly traded companies issuing shares worth more than 10% of paid-up capital via IPO
|
22.5%
|
20%
|
|
Publicly traded company that issues shares worth 10% or less than 10% of its paid-up capital through Initial Public Offering (IPO)
|
25%
|
22.5%
|
|
One Person Company (OPC)
|
22.5%
|
20%
|
|
Other companies as defined u/s 2(31) of the ITA, 2023
|
27.5%
|
25%
|
|
Publicly traded bank, insurance and finance companies
|
37.5%
|
Condition N/A
|
|
Non-publicly traded bank, insurance and finance companies
|
40%
|
Condition N/A
|
|
Merchant bank
|
37.5%
|
Condition N/A
|
|
Company and other than company producing all sorts of tobacco items including cigarette, bidi, chewing tobacco and gul
|
45%+2.5% (Surcharge)
|
Condition N/A
|
|
Publicly traded mobile operator company (10% share of paid-up capital transferred through stock exchange of which minimum 5% must be through pre-initial public offering)
|
40%
|
Condition N/A
|
|
Non-publicly traded mobile operator company
|
45%
|
Condition N/A
|
|
Trust and Association of persons
|
27.5%
|
25%
|
|
Fund
|
27.5%
|
25%
|
|
Firm
|
Slab rates
|
Slab rates
|
|
Cooperative Society, registered under Cooperative Society Act, 2001
|
20%
|
Condition N/A
|
|
Private university, private medical college, private dental college, private engineering college or private college solely dedicated to imparting education on ICT
|
15%
|
Condition N/A
|
|
Capital gain for company, fund and trust
|
15%
|
Condition N/A
|
|
Dividend
|
20%
|
Condition N/A
|
- Condition-1: All income and receipts must be made through bank transfer Any single transaction exceeding BDT 500,000 and annual transactions exceeding BDT 3,600,000 in expenses and investments, must be made through bank transfer.
- Condition 2: If all income is received through bank transfers during the income year.
