• Monday, Jul 22, 2019
  • Last Update : 01:23 pm

Effective corporate tax rate remains unchanged

  • Published at 04:22 pm June 13th, 2019
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Publicly traded companies currently pay a 25% tax rate, non-publicly traded companies pay a 35% tax rate

The government has proposed to keep the income tax rate for company taxpayers unchanged for the 2019-20 fiscal year.

According to the budget speech, multiple corporate tax rates exist for different corporate sectors, and a good number of corporate sectors are enjoying reduced tax rates and tax exemptions. 

“When these facts are taken into consideration, we find the effective corporate tax rate in Bangladesh is below 5%,” it reads.

Considering the facts, the government proposed to continue with the existing corporate tax rate structure for the next year. 

Currently, publicly traded companies pay a 25% tax rate, while it is 35% for non-publiclytraded companies.

The rate is 37.5% for publicly traded banks, insurance, and financial institutions other than merchant banks. Newly-established companies approved by the government in 2013 also pay the same rates.

On the other hand, non-publicly traded bank, insurance, and financial institutions pay 40% tax, while it is 37.5% for merchant banks.

For publicly traded mobile companies, the tax rate is 40%; while it is 45% for non-publicly traded mobile network operators.

There is also a uniform duty of 45% on both publicly traded and non-publicly traded cigarette manufacturers and a 20% tax on dividend income of companies.