Corporate tax stays same; min tax hiked for mobile companies

Bangladesh government is planning to keep the existing corporate tax rates for the next fiscal, with an aim to boost business and investment.

Currently multiple corporate tax rates are in existence for different corporate sectors.

For publicly traded company, tax rate in Bangladesh is 25 per cent and for publicly non-traded company tax rate is 35 per cent.

Cumulatively, the effective corporate tax rate in Bangladesh is below 5 per cent, says the budget for fiscal 2019-20 placed at parliament today.

In addition, tax rate for banks and financial institutions was reduced by 2.5 per cent last year, which resulted in significant reduction of tax collection from this sector.

However, the budget proposes to raise the minimum tax rate for privately-run mobile companies to 2 per cent of their turnover from 0.75 per cent.