· Md. Arifuzzaman ACMA · Taxation · 3 min read
Key Tax Updates for Bangladesh Businesses in 2025-26
Important changes to corporate tax, VAT regulations, and compliance requirements that every business in Bangladesh must know for the 2025-26 fiscal year.
Overview of Tax Changes for 2025-26
The National Board of Revenue (NBR) of Bangladesh has introduced several significant changes in tax regulations for the fiscal year 2025-26. These changes affect corporate tax rates, VAT compliance procedures, and withholding tax obligations. At ARIF HASAN & ASSOCIATES, we have carefully analyzed these updates to help our clients stay fully compliant.
Corporate Tax Rate Updates
The corporate tax rate structure has seen important modifications this year. Publicly traded companies continue to benefit from the reduced rate of 22.5%, while non-publicly traded companies face a standard rate of 27.5%. However, there are specific sector exemptions and deductions that businesses should be aware of.
Key Changes Include:
- Enhanced depreciation allowances for technology investments
- New deduction categories for employee training expenses
- Updated transfer pricing documentation requirements for multinational companies
- Revised advance income tax (AIT) thresholds
VAT Compliance: What Has Changed
The Value Added Tax (VAT) system in Bangladesh continues to evolve. For 2025-26, the following changes are noteworthy:
Online Filing Mandatory
All VAT-registered businesses are now required to submit their monthly VAT returns (Mushak-9.1) through the online VAT portal. Physical submissions are no longer accepted for businesses with annual turnover exceeding BDT 3 crore.
New VAT Rates on Services
Several service categories have seen VAT rate adjustments. Professional services, IT services, and consulting firms should review the updated VAT schedule carefully.
Input Tax Credit Rules
The rules governing input tax credit have been tightened. Businesses must now maintain digital copies of all purchase invoices and ensure they are properly registered in the VAT system before claiming credits.
Withholding Tax (TDS) Updates
Withholding tax at source remains a critical compliance area. Key updates include:
- Section 52: Enhanced TDS rates on supply of goods and services
- Section 53BB: Revised rates for rent payments
- Section 56: Updated provisions for payments to non-residents
- New TDS certificate format requirements
RJSC Compliance Reminders
The Registrar of Joint Stock Companies and Firms (RJSC) has issued updated guidelines for annual return filing. All limited companies must ensure:
- Annual returns are filed within 30 days of the Annual General Meeting (AGM)
- Financial statements are properly certified by a practicing chartered accountant
- Director information is up-to-date in the RJSC database
How ARIF HASAN & ASSOCIATES Can Help
Navigating these regulatory changes can be challenging. Our team of qualified tax professionals, led by Md. Arifuzzaman ACMA, is well-positioned to help your business:
- Tax Planning: Strategic advice to minimize tax liability within legal bounds
- Compliance Management: Ensuring all filings are accurate and submitted on time
- Representation: Acting on your behalf before the NBR and other regulatory authorities
- Training: Educating your finance team on the latest requirements
Contact Us
For a comprehensive review of how these tax changes affect your specific business situation, contact our tax team today.
📞 Phone: +880 1538-031251
📧 Email: arifhasan198918@gmail.com
📍 Office: Section-12, Block-A, Road -1, Anik Plaza, Pallabi, Mirpur, Dhaka-1216
Our team is available Saturday to Thursday, 9:00 AM to 6:00 PM.
Disclaimer: This article provides general information only. For advice specific to your business situation, please consult with our qualified tax professionals.
