This booklet was prepared for the firm's technical seminar on 3 June 2025 and summarises the income tax and VAT changes in Bangladesh's Finance Ordinance 2025, which takes effect from 1 July 2025. Income tax items are on pages 3 to 14 and VAT on pages 15 to 25.

Income tax: the tax-free threshold for individuals rises from Taka 350,000 to Taka 375,000 for assessment years 2026-27 and 2027-28, and a 10% first slab replaces the 5% slab. Non-listed companies move to 27.5% from 2026-27, and listed company rates depend on all income being received by bank transfer. Capital gains are taxed at 15% for companies, funds and trusts and on listed shares, while other assets held for under five years are taxed at regular rates. Minimum tax on gross receipts rises to 1% for most sectors, and excess minimum tax can be carried forward. Withholding returns become quarterly, TDS on contract services falls from 7% to 5%, and advisers and professionals who are natural persons face 15%. The tax holiday for industrial undertakings is cancelled.

VAT: advance tax rises to 7.5% for commercial importers and falls to 2% for manufacturers, commercial importers adding less than 50% local value need not pay VAT on the first sale, several penalties are reduced, ERP systems can hold VAT books without NBR permission, phased VAT rates apply to certain home appliance manufacturers, and excise duty is waived on bank balances up to Taka 3 lakh.