The National Board of Revenue (NBR) announced a reduction in the capital gains tax on profits from the sale of shares in listed companies on Bangladesh’s stock exchanges, aiming to make the market more attractive to both domestic and foreign investors.
Under the new NBR notification, a flat 15% tax rate will apply to capital gains exceeding Tk50 lakh from trading listed shares.
This revised tax framework, applicable from July 1, 2024, to June 30, 2025, significantly lowers the maximum effective rate for capital gains from 40.50% to 20.25% for eligible taxpayers.
Previously, capital gains from shares sold within five years of purchase were taxed at the regular rate, with a maximum capital gains tax rate of 30 percent on amounts above Tk50 lakh.
Additionally, wealthy taxpayers will still be subject to a surcharge based on their net worth.
This surcharge ranges from 10%-35%, depending on the taxpayer’s net assets:
- Net assets above Tk4 crore: 10% surcharge on tax payable
- Above Tk10 crore: 20% surcharge
- Above Tk20 crore: 30% surcharge
- Above Tk50 crore: 35% surcharge
For example, a taxpayer with net assets exceeding Tk50 crore will face a 15% tax on capital gains above Tk50 lakh, along with a 35% surcharge on this tax, resulting in a total effective rate of 20.25%.
NBR officials anticipate that the streamlined tax policy will increase investment in Bangladesh's stock market, promoting growth and liquidity.
