Living in Bangladesh: residency from 183 days, 0 % up to 375,000 taka then 10 % to 30 %, surcharge depending on net worth

In Bangladesh, the Income Tax Act of 2023, in its English text published by the National Revenue Authority (NBR), defines a resident as an individual present for 183 days or more in a given year, or 90 days or more in a given year after 365 days or more of presence in the four preceding years. Residents are taxed on their income from all sources, including income earned outside Bangladesh. According to the NBR circular of August 21, 2025, which predates the Finance Act 2026 (Act No. 96 of 2026, dated June 30, 2026), the tax rate for individuals is zero up to 375,000 taka and then from 10 % to 30 % for the 2026-27 and 2027-28 tax years. The Finance Act 2026, according to press reports, raises this threshold to 400,000 taka. The text of the law is not detailed here. A surtax, calculated on the tax, depends on net worth. This page cites these sources; anything they do not specify is indicated as such.

Resident: 183 days, or 90 days after 365 days

Article 2, point 45, of the English text of the Income Tax Act 2023 defines a resident, for an individual, as a person who has been in Bangladesh:

• for 183 days or more in total in the year; or
• for 90 days or more in total during the year, after having already been present in Bangladesh for 365 days or more in total during the previous four years.

A non-resident is a person who is not a resident. The text distinguishes between the assessment year, a twelve-month period beginning July 1st, and the income year, which is the fiscal year preceding the assessment year. The NBR circular gives the example of income from the 2024-25 fiscal year being taxed in the 2025-26 fiscal year. For a taxpayer who is not a corporation, the text sets the tax due date as November 30th following the end of the fiscal year.

What is imposed according to the status

Article 26 of the same text distinguishes between two cases. A resident's income includes income earned or deemed to be earned in Bangladesh, as well as income earned outside Bangladesh during the year and income received outside Bangladesh. A non-resident's income includes income earned or deemed to be earned in Bangladesh and income received or deemed to be received there.

Article 27 lists income deemed to have originated in Bangladesh, including:

• the salary for a job held in Bangladesh;
• dividends paid outside Bangladesh by a Bangladeshi company;
• interest, royalties and technical fees paid by the State or by a resident, with exceptions when the use takes place abroad;
• the proceeds from the sale of assets located in Bangladesh.

Article 28 avoids double inclusion: income already included because it was generated in one year is not included again when received in Bangladesh in another year.

The tax rates for individuals for 2026-27 and 2027-28

The NBR Income Tax Circular 2025-2026, dated 21 August 2025, sets out the following scale for individuals and undivided Hindu families, for the tax years 2026-27 and 2027-28. The amounts are in taka (BDT).

The exemption threshold is 425,000 taka for women and people aged 65 and over, and 500,000 taka for people with disabilities and third-gender taxpayers. When income exceeds the threshold, the minimum tax is 5,000 taka, or 1,000 taka for a new taxpayer.

Numerical example, with a total assumed income of 1,000,000 taka: 375,000 at 0 %, then 300,000 at 10 % (30,000), then 325,000 at 15 % (48,750), i.e. 78,750 taka before reliefs and credits, which this page does not detail.

The tax scale excludes non-resident individuals who are not Bangladeshi nationals. For other non-resident taxpayers, excluding Bangladeshi non-residents, companies, firms, and associations of persons, the circular applies a rate of 30 %.

Surcharge based on net worth

The same circular provides for a surcharge for individual taxpayers for the 2026-27 and 2027-28 tax years. This surcharge applies to the tax calculated using the standard tax brackets and depends on the net worth declared in the asset and liability statement under Article 167. One crore is equivalent to ten million taka.

The circular adds conditions related to owning vehicles or large dwellings; these are not detailed here. It also specifies that the surcharge linked to the minimum tax does not apply from the 2026-27 tax year onwards.

Coordination with the Franco-Bangladeshi convention

The convention was signed in Dhaka on March 9, 1987, and entered into force on September 1, 1988, according to the BOFiP (Official Bulletin of Public Finances). The BOFiP list of April 29, 2026, does not mention any amendments, and Bangladesh is not included in the list of conventions modified by the multilateral convention. The text published by the French tax authorities states:

• withholding tax on dividends is capped at 10 % of the gross amount if the beneficial owner is a company, other than a partnership, which directly holds at least 10 % of the capital of the company paying the dividends, and at 15 % in other cases (Article 10, § 2);
• it is capped at 10 % for interest (article 11, § 2) and for royalties (article 12, § 2);
• Gains not covered by the preceding paragraphs of Article 13 are taxable only in the State of which the transferor is resident (Article 13, § 5);
• the 183-day exception for wages is calculated per fiscal year (Article 15, § 2);
• Retirement pensions from a previous job are taxable in the State of residence (Article 18);
• Bangladeshi income from articles 10, 11, 12, 14, 16, 17 and 22 is taxable in France for its gross amount, with a tax credit for Bangladeshi tax (article 23, § 2).

For dual residences, Article 4 first considers the permanent home. Details can be found on our page dedicated to the agreement.

What this page does not cover

It does not detail the internal rates on dividends, interest, rents, and capital gains, nor the purchase of real estate by a foreigner, nor inheritance tax, social security, or visas. The circular used dates from August 2025; the Finance Act 2026 (Law No. 96 of 2026, dated June 30, 2026), published on the NBR website, is subsequent. Its provisions on exemption thresholds, tax brackets, and surcharges are not detailed here, and the amounts indicated above should be verified with the NBR. These matters fall under Bangladeshi law and should be verified with the NBR. Balmont Conseil is neither a law firm nor a local tax advisor; local tax matters should be verified with a professional based in Bangladesh. French matters, including the departure declaration, accounts to be declared, and the exit tax, are addressed in our pages on tax residency.

What changes depending on your situation

• Your number of days spent in Bangladesh this year and over the previous four years.
• Your resident or non-resident status determines whether your foreign income is included in the tax base.
• Your net worth, which determines the surcharge.
• Your residency situation in France and Bangladesh, year by year.

The rule depends on your situation. No results are guaranteed.