Corporate Tax Compliance
Business Compliance in Bangladesh
Complete Guide to Monthly VAT Return, Quarterly With-holding Tax, Quarterly FDI Filing & Annual Tax Return in Bangladesh
Corporate Tax Compliance is a structured process that ensures a company fully adheres to all applicable tax and VAT regulations set by the National Board of Revenue and other regulatory authorities such as Bangladesh Bank.
It involves accurate calculation, timely payment, and proper submission of all statutory returns and reports. Maintaining consistency across VAT, Tax, FDI, and financial records is essential to ensure transparency, avoid penalties, and support a smooth audit process.
A well-managed compliance system not only reduces risk but also strengthens the company’s financial integrity and regulatory standing.
Updated TDS Rates with Income Tax Sections & Rules and VDS Percentage with Service Codes in Bangladesh
Ensure accurate calculation of all applicable corporate taxes and VAT in accordance with the latest laws, regulations, and guidelines issued by the National Board of Revenue (NBR). Proper computation of tax and VAT helps ensure full compliance, avoid penalties, and maintain financial accuracy in business operations.
| S.L | Head Expense | Income Tax Section | Tax Rate | VAT Service Code | VAT Rate |
| 1 | Commercial space Rental | Section 109 | 10% | S033.00 (Lessor) | 15% |
| 2 | Rental service Charge | Section 109 | 10% | S099.20 (Misc. Service) | 15% |
| 3 | Salary | Section 32-34 | Average Rate | N/A [Conversation] | N/A |
| 4 | Internet | Section 90 | 5% | S099.10 (ITES) | 5% |
| 5 | Marketing & Promotion | Section 92 | 5% | S007.00 (Advertising) | 15% |
| 6 | Garbage & Cleaning | Section 90 | 10% (on commission) or 2% (on bill) | S065.00 | 15% |
| 7 | Interest on Securities | Section 106 | 5% (Govt/BSEC approved) | N/A | N/A |
| 8 | Royalties & Franchise | Section 91 | 10% (Resident) / 20% (Non-Resident) | S099.20 | 15% |
| 9 | C&F Agent Tax | Section 122 | 10% (on commission) | S099.20* | 15% |
| 10 | Cigarette Manufacturer | Section 129/152 | 10% (Banderols) / 3% (Advance Tax) | H.S. 2402.20.00 | 15% + SD |
| 11 | Compensation (Property Acquisition) | Section 111 | 6% (City Corp/Paurashava) / 3% (Outside) | N/A | Exempt |
| 12 | Interest on Saving Instruments | Section 105 | 10% (Exempt if total investment ≤ 5 Lakh) | N/A | N/A |
| 13 | Brick Manufacturer License | Section 130 | Tk. 80,000 – 220,000 (Advance Tax) | Mushak-4.3 | 15% |
| 14 | L/C Commission | Section 96 | 5% | S014.00 / S099.20 | 15% |
| 15 | Travel Agent | Section 95 | 0.30% (of total ticket value) | Rule 18 | 15% (on margin) |
| 16 | Trade License (New/Renewal) | Section 131 | Tk. 500 – 3,000 (Tax collection) | N/A | N/A |
| 17 | Freight Forwarding Commission | Section 124 | 10% (Commission) / 1.5% (Gross Bill) | S015.10 | 15% |
| 18 | Rental Power / Electricity Purchase | Section 114 | 4% | Utility Bill | 5% / Exempt |
| 19 | Convention Hall / Conference Centre | Section 110 | 10% | S017.00 | 15% |
| 20 | Remittance from Abroad (Service) | Section 124 | 7.50% | Imported Service | 15% |
| 21 | International Gateway (IGW) Service | Section 108 | 1.5% (Receipts) / 7.5% (Payments) | S099.20 | 15% |
| 22 | Excess Life Insurance Premium Payment | Section 99 | 5% (on amount exceeding premium) | N/A | N/A |
| 23 | Purchase through Local L/C | Section 97 | 1% / 2% / 3% (Based on item) | S037.00 | 15% (VDS 10%) |
| 24 | Payment by Mobile Phone Operator | Section 98 | 20% (Revenue share/License fee) | S099.20 | 15% |
| 25 | Import | Section 120 | AIT Varies (HS Code wise) | N/A | 15% (+ 7.5% AT) |
| 26 | Deduction from WPPF | Section 88 | 10% | N/A | N/A |
| 27 | Remuneration of MPs | Section 87 | Average Rate | N/A | N/A |
| 28 | Stationary (Supply) | Section 89 | 3% – 7% | S008.10 | 15% |
| 29 | Renovation Work (Contractor) | Section 89 | 5% – 7% | S004.00 | 10% (VDS rate) |
| 30 | Hotel (A.C) | Section 90 / 110 | Note-2 / 10% | S001.10 | 15% |
| 31 | Hotel (Non A.C) | Section 110 | 10% (on rent) | S001.10 | 10% |
| 32 | Restaurant | Section 90 / 110 | 2% (on bill) / 10% (rent) | S001.20 | 5% |
| 33 | Decorator & Catering | Section 90 | 10% (Comm.) / 2% (Bill) | S002.00 | 15% |
| 34 | Motor Repair Workshop | Section 90 | 8% | S003.10 | 10% |
| 35 | Dockyard | Section 90 | 8% | S003.20 | 15% |
| 36 | Construction Company | Section 89 | 5% (Note-1, S.L 17) | S004.00 | 10% |
| 37 | Warehouse | Section 109 | 10% (Rental income) | S033.00 | 15% |
| 38 | Port (Private/Container) | Section 90 | 8% | S003.20 | 15% |
| 39 | Cold Storage | Section 90 | 10% (Other services) | S099.20 | 15% |
| 40 | Advertising Agency | Section 92 | 5% | S007.00 | 15% |
| 41 | Printing Press | Section 89 | 5% – 7% (Note-1) | S008.10 | 15% |
| 42 | Binding Company | Section 89 | 5% – 7% (Note-1) | S099.20* | 15% |
| 43 | Auctioneer | Section 133 | 10% (of sale price) | S009.00 | 15% |
| 44 | Land Development Agency | Section 126 | 5% (of deed value) | S010.10 | 2% |
| 45 | Building Construction Co. | Section 126 | TDS Rule 7 (Note-3) | S010.20 | 2% / 4.5% |
| 46 | Video & Cassette Shop | Section 90 | Note-2 (Misc. Service) | S099.20 | 15% |
| 47 | Video & Game Shop | Section 90 | Note-2 (Misc. Service) | S099.20 | 15% |
| 48 | Audio & Video Recording | Section 90 | Note-2 (Misc. Service) | S099.20 | 15% |
| 49 | CD Rental Shop | Section 90 | Note-2 (Misc. Service) | S099.20 | 15% |
| 50 | Telephone (Utility) | Section 108** | 1.5% / 7.5% | Utility Bill | 15% (VDS Exempt) |
| 51 | Teleprinter | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 52 | Telex | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 53 | Fax | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 54 | Internet Company | Section 90 | 5% | S099.10 | 5% |
| 55 | SIM or e-SIM Provider | Section 98 | 20% (Revenue Share) | N/A | Tk. 300/SIM |
| 56 | Mechanical Laundry | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 57 | Indenting Company | Section 90 | 7.50% | S014.00 | 15% |
| 58 | Freight Forwarders | Section 124 | 1.5% (Gross Bill) | S015.10 | 15% |
| 59 | Clearing & Forwarding | Section 122 | 10% (on commission) | S099.20* | 15% |
| 60 | Travel Agency | Section 95 | 0.30% (of total value) | Rule 18 | 15% (on margin) |
| 61 | Community Center | Section 110 | 10% | S017.00 | 15% |
| 62 | Movie Studio | Section 93 | 10% | S099.20* | 15% |
| 63 | Photo Maker | Section 90 | 10% (Creative Media) | S099.20* | 15% |
| 64 | Survey Company | Section 101 | 15% | S020.00 | 15% |
| 65 | Plant/Equipment Rental | Section 90 | 15% | S021.00 | 15% |
| 66 | Dessert Store (Sweetmeat) | Section 89 | 5% | S001.20 | 5% |
| 67 | Film Awards | Section 80(30A) | Exempted | N/A | N/A |
| 68 | Film Distributor | Section 94 | 10% (Commission) | S099.20 | 15% |
| 69 | Furniture Manufacturer | Section 89 | 5% | S024.00 | 7.50% |
| 70 | Furniture Marketing Center | Section 94 | 10% (Comm./Benefit) | S024.00 | 7.5 |
| 71 | WASA (Utility) | Section 89 | Note-1 (3% – 7%) | Utility Bill | 15% (VDS Exempt) |
| 72 | Goldsmith / Silversmith | Section 89 | 3% – 7% | S099.20* | 15% |
| 73 | Insurance Company | Section 88/119 | 10% (on premium) | Insurance [Conversation] | 15% (VDS Exempt) |
| 74 | Courier & Express | Section 90 | Note-2 (Misc. Service) | S028.00 | 15% |
| 75 | Astrologer | Section 90 | 10% (Professional) | S099.20 | 15% |
| 76 | Beauty Parlor | Section 90 | Note-2 (Misc. Service) | S099.20 | 15% |
| 77 | Repair Service provider | Section 90 | 5% (Table-14) | S031.00 | 15% |
| 78 | Consultancy & Supervisory | Section 90 | 10% (Technical) | S032.00 | 15% |
| 79 | Lessor | Section 109 | 10% | S033.00 | 15% |
| 80 | Audit & Accounting Firm | Section 90 | 10% (Professional) | S034.00 | 15% |
| 81 | Shipping Agent | Section 90 | 8% (on commission) | S015.10 / S099.20* | 15% |
| 82 | AC Bus Service | Section 138 | Tk. 37,500 (Fixed) | S048.00 | 15% |
| 83 | AC Boat Service | Section 139 | Varies (per capacity) | S048.00 | 15% |
| 84 | AC Railway Service | Section 90 | 10% (Misc. Service) | S048.00 | 15% |
| 85 | Supplier (Contractor) | Section 89 | 5% – 7.5% (Note-1) | S037.00 | 10% |
| 86 | Cultural Event Organizer | Section 90 | 20% (Management) | S071.00 | 15% |
| 87 | Satellite Cable Operator | Section 90 | 20% (Broadcast rent) | S054.00 | 15% |
| 88 | Satellite Channel Dist. | Section 90 | 20% (Broadcast rent) | S054.00 | 15% |
| 89 | Security Service | Section 90 | 10% (Comm.) / 2% (Bill) | S040.00 | 15% |
| 90 | Marriage Media | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 91 | Automatic Sawmill | Section 89 | 5% (Processing) | S099.20* | 15% |
| 92 | TV & Online Broadcaster | Section 90 | 10% (Comm.) / 0.65% (Bill) | S043.00 | 15% |
| 93 | BRTA Services | N/A | N/A | N/A | Exempt from VDS |
| 94 | Legal Consultant | Section 90 | 15% (Natural) / 7.5% (Other) | S045.00 | 15% |
| 95 | Health Clubs / Fitness | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20 | 15% |
| 96 | Sports Organizer | Section 90 | 10% (Comm.) / 2% (Bill) | S071.00 | 15% |
| 97 | Transport Contractor | Section 89 | 5% | S048.00 | 15% |
| 98 | Vehicle Rental Provider | Section 89 | 5% | S049.00 | 15% |
| 99 | Architect / Interior | Section 90 | 15% (Natural) / 7.5% (Other) | S050.10 | 15% |
| 100 | Graphic Designer | Section 90 | 15% (Natural) / 7.5% (Other) | S050.20 | 15% |
| 101 | Engineering Firm | Section 89 | 5% (on bill) | S051.00 | 15% |
| 102 | Sound Equipment Rental | Section 90 | 15% (Machinery rent) | S052.00 | 15% |
| 103 | Board Meeting Attendees | Section 90 | 10% (Honorarium) | S053.00 | 15% |
| 104 | Satellite Advertiser | Section 90/119 | 20% (Non-Res. Broadcast) | S054.00 | 15% |
| 105 | Land Seller (Developer) | Section 126 | TDS Rule 7 | S010.10 | 2% |
| 106 | Bank & Financial Service | Section 102 | 10% – 20% (Interest) | N/A | Exempt from VDS |
| 107 | Mobile Banking Provider | Section 90 | 10% (Agent commission) | S099.20* | 15% |
| 108 | Electricity Distributor | Section 114 | 6% (Purchase of power) | Utility Bill | Exempt from VDS |
| 109 | Chartered Aircraft Rent | Section 90 | 15% (Equipment rent) | S058.00 | 15% |
| 110 | Glass Sheet Coating Co. | Section 89 | 5% (Processing) | S099.20* | 15% |
| 111 | Buyer of Auctioned Goods | Section 133 | 10% (of sale price) | S060.00 | 15% |
| 112 | Credit/Debit Card Issuer | Section 166 / Table | PSR Required (Note-A) | N/A | Exempt from VDS |
| 113 | Money Exchange Inst. | Section 90 | 10% (Comm.) / 2% (Bill) | S099.20* | 15% |
| 114 | Tailoring Shops | Section 89 | 5% (Processing) | S099.20* | 15% |
| 115 | Amusement/Theme Parks | Section 90 | 10% (Misc. Service) | S099.20* | 15% |
| 116 | Picnic/Shooting Spot | Section 90 | 10% (Misc. Service) | S099.20* | 15% |
| 117 | Cleaning Service Co. | Section 90 | 10% (Comm.) / 2% (Bill) | S065.00 | 15% |
| 118 | Lottery Ticket Seller | Section 94 | 10% (on commission) | S066.00 | 15% |
| 119 | Immigration Advisor | Section 90 | 10% (Professional) | S067.00 | 15% |
| 120 | Coaching Center | Section 90 | 10% | S099.20* | 15% |
| 121 | English Medium School | Section 163 / 166 | 2.5% Surcharge* | S099.20 | 5% / 15% |
| 122 | Private University | Section 163 / 166 | 15% (on income) | N/A | Exempt |
| 123 | Private Medical College | Section 163 / 166 | 15% (on income) | N/A | Exempt |
| 124 | Event Organizer | Section 90 / 119 | 20% (Management) | S071.00 | 15% |
| 125 | HR Outsourcing Co. | Section 90 | 10% | S072.00 | 15% |
| 126 | Manpower Export Org. | Section 121 | 10% (Collection) | S099.20* | 15% |
| 127 | Space / Facility Renter | Section 109 | 10% (Rental income) | S033.00 | 15% |
| 128 | Stock/Securities Broker | Section 137 | 0.03% (on value) | S099.20* | 15% |
| 129 | Social & Sports Clubs | Section 30 / 166 | Note-A (PSR) | S099.20* | 15% |
| 130 | Tour Operator | Section 95 / Note-3 | Note-B (Margin) | S099.20* | 15% (on margin) |
| 131 | RMG Marketing | Section 94 | 10% (Commission) | S024.00* | 7.5% / 15% |
| 132 | Ride Sharing | Section 90 | 10% | S048.00* | 15% |
| 133 | Tower Sharing Provider | Section 90 | 12% (Network Op.) | S099.20 | 15% |
| 134 | OTT Platform | Section 90/124 | 10% / 7.5% | S099.20 | 15% |
| 135 | IT-Based Services (ITES) | Section 163/166 | Exempted* | S099.10 | 5% |
| 136 | Other Misc. Services | Section 90 | 10% | S099.20 | 15% |
| 137 | Sponsorship Services | Section 90 | 10% (Comm) / 2% (Bill) | S099.30 | 15% |
| 138 | Meditation Services | Section 90 | 10% | S099.20 | Exempt / 15% |
| 139 | Credit Rating Agency | Section 90 | 10% | S099.50 | 15% |
| 140 | Selling Products Online | Section 163 / PSR | 1% (Min. Tax) | S099.60 | 5% |