VATax BD | Virtual Accounting, Taxation and Business Development

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.

Head ExpenseIncome Tax SectionTax RateVAT Service CodeVAT Rate
Commercial Space RentalUnder Section: 10910%S07415%
Rental Service ChargeUnder Section : 10910%S07415%
SalaryUnder Section : 86up to 30%  
InternetUnder Section : 90, R: 4(16)5%S012.145%
Marketing & PromotionUnder Section : 90, R: 4(3)8%S099.2015%
Garbage & Cleaning ServiceUnder Section : 90, R: 4(3)2%S06515%
Deduction on interest on securitiesUnder Section : 106   
TDS on Royalties, Franchise, etcUnder Section : 91   
Collection of tax from C&F agentsUnder Section : 122   
TDS of Cigarette manufacturersUnder Section : 129   
TDS on Compensation
Against acquisition of property
Under Section : 111   
Interest on saving instrumentsUnder Section : 105   
Deduction from Brick
Manufacturer Licence renue
Under Section : 130   
L/C CommissionUnder Section : 96   
Travel AgentUnder Section : 95   
Trade License or renueUnder Section : 131   
Freight forwarding agency
Commission
Under Section : 113   
Rental PowerUnder Section : 114   
Deduction of tax for services from
Convention hall, conference centre, etc
Under Section : 110   
Deduction of tax from any
Income Remitted from abroad in connection
with service, revenue sharing etc
Under Section : 124   
International gateway service in
Respect of phone call
Under Section : 108   
Payment in excess of premium
Paid on life insurance policy
Under Section : 99   
Payment on account of
Purchase through local L/C
Under Section : 97   
Deduction from Payment by
Cellular mobile phone operator
Under Section : 98   
ImportUnder Section : 120   
Deduction from WPFUnder Section : 88   
Deduction from Remuneration of MPsUnder Section : 87  15%
StationaryUnder Section  : 89, R: 3(19)5%S03710%
Renovation WorkUnder Section : 89, R: 3(19)5%S031.0015%
Hotel (A.C)  S 001.1015%
Hotel (Non A.C)  S 001.1010%
Restaurant  S 001.205%
Decorator and Catering  S 002.0015%
Motor Vehicle repair workshopsUnder Section: 90, R4(10)8%S 003.1010%
DockyardUnder Section: 90, R4(19)10%S 003.2015%
Construction companyUnder Section: 90, R4(2) S 004.0010%
Warehouse  S 005.1015%
Port  S 005.2015%
Cold storage  S 006.00 
Advertising agency  S 007.0015%
Printing pressUnder Section: 90, R4(5)10%S 008.1015%
Binding company  S 008.20 
Auctioneer  S 009.0015%
Land Development Agency  S 010.102%
Building construction company  S 010.202%,  4.5%
Video and Cassette Shop  S 011.10 
Video and game shop  S 011.20 
Audio and video recording shop  S 011.30 
Video and audio CD rental shop  S 011.4015%
Telephone  S 012.1015%
Teleprinter  S 012.1115%
Telex  S 012.1215%
Fax  S 012.1315%
Internet company  S 012.145%
SIM card or e-SIM provider  S 012.20 
Mechanical laundry  S 013.0015%
Indenting company  S 014.0015%
Freight Forwarders  S 015.1015%
Clearing & forwarding company  S 015.2015%
Travel agency  S 016.00 
Community Center  S 017.0015%
Movie studio  S 018.0015%
Photo Maker  S 019.00 
Survey company  S 020.0015%
Plant Equipment rental company  S 021.0015%
Dessert store  S 022.0010%
Film Awards  S 023.1015%
Film distributor  S 023.2015%
Furniture manufacturer  S 024.108%
Furniture Marketing Center  S 024.208%
WASA  S 025.0015%
Goldsmith and silversmith  S 026.005%
Insurance company  S 027.0015%
Courier and Express Services  S 028.0015%
Astrologer  S 029.0015%
Beauty Parlor  S 030.0015%
Repair service provider  S 031.0015%
Consultancy & Supervisory Firms  S 032.0015%
Lessor  S 033.0015%
Audit and accounting firm  S 034.0015%
Shipping agent  S 035.0015%
Air-conditioned bus service  S 036.1015%
Air-conditioned boat service  S 036.2010%
Air-conditioned railway service  S 036.3015%
upplier  S 037.0010%
International cultural event organizer  S 038.0015%,   sd 10%
Satellite cable operator  S 039.1015%
Satellite Channel Distributor  S 039.2015% , sd 25%
Security service  S 040.0015%
Marriage Media  S 041.0015%
Automatic or mechanized sawmill  S 042.0015%
TV & online broadcaster Provider  S 043.0015%
Services provided by BRTA  S 044.0015%. , sd 10%
Legal consultant  S 045.0015%
Health Clubs & Fitness Centers  S 046.0015%
Sports organizer  S 047.0015%
Transportation contractor  S 048.005% ,15%
Vehicle rental provider  S 049.0015%
Architect, Interior Designer  S 050.1015%
Graphic designer  S 050.2015%
Engineering firm  S051.0015%
Sound equipment rental provider  S052.0015%
Board meeting attendees  S053.0015%
Advertiser via satellite channel  S054.0015%
Land seller  S055.00 
Bank & Financial service providers  S056.0015%
Mobile banking service provider  S056.1015%
Electricity distributor  S057.005%
Chartered aircraft rental company  S058.0015% , sd 25%
Glass sheet coating company  S059.0015%
Buyer of auctioned goods  S060.0015%
Credit card or debit card issuer  S061.0015%
Money exchange institution  S062.0015%
Tailoring Shops and Tailors  S063.0015%
Amusement parks and theme parks  S064.1015%
Picnic sport, shooting sport  S064.2015%
Cleaning services company  S065.0015%
Lottery ticket seller  S066.0015%
Immigration Advisor  S067.0015%
Coaching Center  S068.0015%
English Medium School  S069.005%
Private university  S070.10 
Private medical  S070.20 
Event organizer  S071.0015%
HR outsourcing company  S072.0015%
Manpower Exporting Organization  s073.00 
Space and facility renter  S074.0015%
Stock and Securities Broker  S075.00 
Social and sports clubs  S076.0015%
Tour operator  S077.0015%
Readymade Garment Marketing  S078.0010%,  7.5%
Ride share  S080.005%
Tower sharing service provider  S081.0015%
OTT platform  S082.0015%
IT-based services  S099.105%
Other miscellaneous services  S099.2015%
Sponosorship Services  S099.3015%
Meditation services  S099.405%
Credit rating agency  S099.5015%
Selling products online  S099.6015%
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