6.1 Overview of Bangladesh’s Tax Structure

Bangladesh operates a dual taxation system comprising direct and indirect taxes. The Income Tax Act, 2023, and Income Tax Rules, 1984 govern direct taxation, which includes corporate and individual income taxes. Indirect taxes, primarily Value-Added Tax (VAT) and customs duties, are levied on the supply of goods and services. The National Board of Revenue (NBR) is the key regulatory body overseeing tax administration. Bangladesh has progressive personal income tax rates and varying corporate tax rates depending on industry and company type. Additionally, tax incentives and exemptions exist for sectors such as export-oriented industries, IT, and renewable energy.