§ 1Short title and commencement
The Income Tax Act, 2023 is Bangladesh's comprehensive legislation codifying the law relating to income tax, consolidating and rationalising the provisions of the earlier Income Tax Ordinance, 1984. It applies to all individuals, companies, firms, associations, and other taxable entities deriving income in or from Bangladesh. The Act is structured with simplified language, reduced rates, and broader tax base compared to its predecessor, and it introduces a modern tax administration framework. Key mechanisms include the taxation of income under seven heads including salaries, business profits, capital gains, and investment income (Section 18); the progressive tax rate structure for individuals (from 0% to 30%) and a flat rate of 20% for companies; the introduction of a universal self-assessment system; and the mandatory use of electronic filing and digital payments. Notable provisions include the requirement for all taxpayers to obtain a Taxpayer's Identification Number (TIN) and file tax returns, the introduction of a turnover tax for small businesses, tax incentives for new industries, green energy, and women entrepreneurs, and enhanced powers of tax authorities to audit and collect taxes including attachment of bank accounts and seizure of property for non-payment. The Act also provides for advance tax rulings, alternative dispute resolution mechanisms, transfer pricing rules for related-party transactions, and provisions for the exchange of information with foreign tax authorities under international tax agreements. Penalties for non-compliance include fines, imprisonment, and surcharges. The Act repeals the Income Tax Ordinance, 1984 and is now the primary income tax legislation in Bangladesh.
Full text · showing key sections
§ 2Definitions
§ 3Income chargeable to tax
§ 4Scope of total income
§ 5Resident and non-resident
§ 6Residence of individuals
§ 7Residence of companies
§ 8Heads of income
§ 9Salaries
§ 10Income from house property
§ 11Income from business
§ 12Income from profession
§ 13Capital gains
§ 14Income from other sources
§ 15Exempt income
§ 16Deductions
§ 17Depreciation
§ 18Losses
§ 19Set off of losses
§ 20Carry forward of losses
§ 21Tax rates
§ 22Tax credits
§ 23Minimum tax
§ 24Assessment of tax
§ 25Self-assessment
§ 26Return of income
§ 27Due date for return
§ 28Assessment by Commissioner
§ 29Best judgment assessment
§ 30Reassessment
§ 31Time limit for assessment
§ 32Payment of tax
§ 33Deduction at source
§ 34Advance tax
§ 35Collection of tax
§ 36Refund of tax
§ 37Interest on refund
§ 38Appeals
§ 39Appellate Tribunal
§ 40Reference to High Court
§ 41Revision
§ 42Rectification
§ 43Penalty
§ 44Offences
§ 45Prosecution
§ 46Tax avoidance
§ 47Transfer pricing
§ 48General anti-avoidance rule
§ 49Permanent establishment
§ 50Withholding tax
The Income Tax Act, 2023 is Bangladesh's comprehensive legislation codifying the law relating to income tax, consolidating and rationalising the provisions of the earlier Income Tax Ordinance, 1984. It applies to all individuals, companies, firms, associations, and other taxable entities deriving income in or from Bangladesh. The Act is structured with simplified language, reduced rates, and broader tax base compared to its predecessor, and it introduces a modern tax administration framework. Key mechanisms include the taxation of income under seven heads including salaries, business profits, capital gains, and investment income (Section 18); the progressive tax rate structure for individuals (from 0% to 30%) and a flat rate of 20% for companies; the introduction of a universal self-assessment system; and the mandatory use of electronic filing and digital payments. Notable provisions include the requirement for all taxpayers to obtain a Taxpayer's Identification Number (TIN) and file tax returns, the introduction of a turnover tax for small businesses, tax incentives for new industries, green energy, and women entrepreneurs, and enhanced powers of tax authorities to audit and collect taxes including attachment of bank accounts and seizure of property for non-payment. The Act also provides for advance tax rulings, alternative dispute resolution mechanisms, transfer pricing rules for related-party transactions, and provisions for the exchange of information with foreign tax authorities under international tax agreements. Penalties for non-compliance include fines, imprisonment, and surcharges. The Act repeals the Income Tax Ordinance, 1984 and is now the primary income tax legislation in Bangladesh.