This August 2024 Tax News Flash brings together the NBR orders on tax benefits for businesses in Hi-Tech Parks, Software Technology Parks and IT Training and Incubation Centres regulated by the Bangladesh Hi-Tech Park Authority (BHTPA).

Income tax: investors whose manufacturing or service operations start commercial operation by 30 June 2035 are exempt at 100% for the first seven years and 70% for the next three, subject to conditions. Developers are exempt at 100% for the first ten years, 70% in the 11th year and 30% in the 12th year.

VAT and customs: companies in hi-tech parks receive VAT exemptions on procurement provider and electricity provider services. Industrial companies are exempt from customs duty, regulatory duty, supplementary duty and VAT on imported capital machinery, equipment and parts. Developers receive the same exemption on goods imported for park development. This does not extend to construction materials readily available in Bangladesh, such as MS rod, cement, prefabricated buildings and steel sheet, or to items not directly related to development, such as office equipment, air conditioners, refrigerators and passenger vehicles. Industrial companies in hi-tech parks also receive a customs duty exemption on imported vehicles.