Tax Exemption for Technology Companies in Bangladesh

On 30th June 2024 through publishing Finance Act 2024, Bangladesh Government confirmed that Any income derived from the following business of a person/business being a resident or a non-resident Bangladeshi for the period from the first day of July 2024 to the thirtieth day of June, 2027 is 100% exempted on the conditions that the person/entity shall file an income tax return in accordance with the Income Tax Act 2023.

The above finance act amended Schedule 6 of the Income Tax 2023 to effect the time extension of the Tax Exemption.

Business Categories that are eligible to get Tax Exemption in Bangladesh up to 2027:

1. AI-based solution development
2. Blockchain-based solution development
3. Robotics process outsourcing
4. Software as a service (SaaS)
5. Cyber security service
6. Digital data analytics and application
7. development service
8. Mobile Application Development Service
9. Software Development and Customisation
10. Software Test Lab Service
11. Web listing, website development, and service
12. IT assistance and software maintenance service
13. Geographic information service
14. Digital Animation development
15. Digital graphics design
16. Digital Data Entry and Processing:
17. E-learning platform and e-publication
18. IT Freelancing
19. Call Center Services
20. Document conversion, imaging, and digital archiving

It is to be noted that the tax return shall be filed regularly to be eligible for this exemption. Besides, the business may need to avail  BASIS Membership and a tax exemption certificate from the concerned Tax office on a yearly basis to be eligible for these benefits.

Prior to issuing a Tax Exemption Certificate to the relevant IT Company, the National Board of Revenue typically conducts a thorough examination which includes reviewing employee details, assessing the company’s general tax compliance, verifying business operations, and performing multiple on-site visits to scrutinize the company’s financial documents.