This booklet accompanied the firm's technical seminar on 14 June 2026 and summarises the income tax and VAT proposals in Bangladesh's Finance Bill 2026, before the Bill was passed. Income tax items are on pages 3 to 15 and VAT on pages 16 to 29.

Income tax: individual rates are set for assessment years 2026-27 to 2030-31, with the tax-free threshold rising from Taka 375,000 to Taka 450,000 and a new 35% top slab from 2028-29. Publicly traded companies pay 20% to 27.5% depending on IPO free float and whether all income is received by bank transfer, and non-listed companies pay 27.5%. The Bill proposes withdrawing minimum tax, making excess withholding tax refundable, a 5% rebate for early return filing, and replacing the special business income tax with a 50% charge on withholding shortfalls. It revises many withholding rates, including 5% on service income remitted from abroad and lower rates on several payments to non-residents, and introduces 0.2% advance tax on sales to retailers. Appeal deposits fall to 3% at the Tribunal and 10% at the High Court, and start-ups may carry losses forward for nine years.

VAT: returns would be quarterly with one-third of VAT paid in advance, the reverse charge on imported services is removed, a BIN is needed for business bank accounts, loans and trade licences, appeal deposits fall to 1% and 2%, and registered start-ups are exempt from VAT on local supplies from 1 July 2026 to 30 June 2035.