All the other rates including 25% tax rate for publicly traded companies remain unchanged
Corporate taxes of banks and financial institution have remained unchanged in the national budget for the 2020-21 fiscal year, except for the non-listed companies.
Bangladesh has different corporate tax structures for different industries.
The corporate tax for non-listed companies has been fixed at 32.5% from the existing tax rate of 35%, according to the budget speech by Finance Minister AHM Mustafa Kamal at the parliament on Thursday.
The minister said: “Except for banks, leasing and insurance companies, mobile phone companies and cigarette manufacturers, tax rates for publicly listed companies and non-publicly listed companies have remained 25% and 35% respectively since FY2014-15.
“To ease the tax burden of valued taxpayers at this critical time of the Covid-19 pandemic, I propose a 2.5% reduction in the tax rate of non-listed companies to fix it at 32.5% rather than 35%.”
All the other rates including 25% tax rate for publicly traded companies remain unchanged.
Other than financial institutions, the corporate tax rate is 25% for publicly listed companies and 35% for non-listed firms.
A publicly listed bank or a non-bank financial institution (NBFI) must pay 37.5% corporate tax – which is 40% for non-listed banks.
For publicly listed mobile companies, the tax rate is 40%, while it is 45% for non-publicly listed mobile network operators.