This slide publication sets out the main changes that Bangladesh's Finance Act 2026 made to the Finance Bill 2026 proposals, covering both income tax and VAT.

Income tax: the tax-free threshold for general taxpayers is BDT 400,000 for assessment years 2026-27 and 2027-28, rising to BDT 450,000 and then BDT 500,000 by 2030-31. Until 30 June 2030, listed companies pay 20% where at least 10% of shares are offloaded and 22.5% otherwise, and general companies pay 25%, with rates 2.5% higher for cash-based receipts. Dividend tax, omitted in the Bill, is reinstated at 15% for natural persons and 20% for others, and the proportionate reduction of turnover tax for exempt or reduced-rate businesses is restored. Proposals to treat cash sales deposited in banks as bank transfers, to cap office consumables, to require a TIN for bank accounts and to allow disclosure of undisclosed investments were dropped. Real estate developers must follow IFRS 15 for tax purposes, individuals with business turnover above BDT 100 million become responsible for withholding, and withholding shortfalls are payable with an additional 50%.

VAT: the reverse charge on imported services is reinstated, input VAT is disallowed only proportionately where the sale price is below input cost, the one-third advance VAT payment is abolished, online advertising is added to withholding VAT at 5%, and a revised Mushak-4.3 form is introduced.