Bangladesh Tax Tables 2020 - Tax Rates and Thresholds in Bangladesh
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This page contains the tax table information used for the calculation of tax and payroll deductions in Bangladesh in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ BD, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Bangladesh or would like to add to or suggest amendments to the information herein then please contact us.
2020 Tax Tables [Quick Links]
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Bangladesh Personal Income Tax Tables in 2020
The Income tax rates and personal allowances in Bangladesh are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Bangladesh Tax Calculator 2020.
Bangladesh Residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from ৳ 0.000.00 | to | ৳ 250,000.00 |
| 10% | Income from ৳ 250,000.01 | to | ৳ 400,000.00 |
| 15% | Income from ৳ 400,000.01 | to | ৳ 500,000.00 |
| 20% | Income from ৳ 500,000.01 | to | ৳ 600,000.00 |
| 25% | Income from ৳ 600,000.01 | to | ৳ 3,000,000.00 |
| % | Income from ৳ 0.01 | | and above |
Bangladesh Non-residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 30% | Flat rate on all taxable income |
In Bangladesh, social security deductions, such as contributions to the Provident Fund, are typically not deductible from taxable income. The income tax calculation starts with gross income, and while there are some allowable deductions under Bangladeshi tax law, social security contributions are generally not among them. Therefore, these deductions do not reduce the gross income for the purpose of calculating taxable income. As a result, social security contributions in Bangladesh are treated as separate from the personal income tax calculation process.
Bangladesh Social Security Rates in 2020
In Bangladesh, social security and payroll deductions are integral components of the employment landscape, covering various aspects of worker welfare and benefits. Both employers and employees contribute to these systems, each serving specific purposes.
Bangladesh Social Security in 2020: Rates for Employers and Employees| Social security category | Employee | Employer | Total |
|---|
| Provident Fund | 12% | 3.77% | 15.77% |
| Employee Pension Scheme (EPS) | 0% | 8.33% | 8.33% |
Bangladesh Social Security in 2020: Earnings Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Provident Fund | n/a | n/a | n/a | n/a |
| Employee Pension Scheme (EPS) | n/a | n/a | n/a | n/a |
Types of Contributions:
- Provident Fund: A mandatory savings program where both employers and employees contribute. This fund is primarily used for retirement benefits, helping employees save a portion of their salary during their working years, which can be accessed upon retirement.
- Gratuity: A form of retirement benefit paid by employers. It is a lump sum payment made to employees who have completed a certain period of service with the employer.
- Workers' Welfare Fund: Contributed by the employer, this fund is used for various welfare activities for the workers, including housing, medical care, and education for their children.
- Insurance: Some companies provide insurance schemes covering health, life, and accidents for their employees. These are either funded by the employer or through joint contributions from the employer and the employee.
Employer and Employee Contributions:
- Employers contribute to the Provident Fund, Workers' Welfare Fund, and, in some cases, insurance schemes.
- Employees contribute to the Provident Fund and, in some cases, insurance schemes, depending on the company's policies.
These contributions ensure that employees in Bangladesh have a safety net in terms of retirement savings, financial support in case of job loss, and other welfare measures. The exact rates and thresholds for these contributions vary and are subject to change based on government policies and company regulations.
Bangladesh VAT Rates in 2020
VAT rates for Bangladesh are reviewed annually, you can use the VAT Calculator to calculate VAT due in Bangladesh or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Bangladesh VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 1.5% | Reduced Rate - Land development |
| 2.25% | Reduced Rate - Hospital and cleaning services |
| 4.5% | Reduced Rate - Legal advisory services |
| 5% | Reduced Rate - Domestic electricity supply |
| 7.5% | Reduced Rate - Commercially rented space and machinery |
| 10% | Reduced Rate - Advertising; rented shops (above 300 square metres) |
| 15% | Standard Rate |
Historic Tax Tables supported for Bangladesh
The following tax tables are supported by iCalculator™ BD as part of the suite of free tax tools we provide for Bangladesh.