Most businesses are subject to three main regimes at once. Income tax is governed by the Income Tax Act 2023, VAT and supplementary duty by the VAT and SD Act 2012, and import and export duties by the Customs Act 2023. Each annual Finance Act amends rates, thresholds and procedures, and rules and orders fill in the detail. The answer also depends on whether you operate as a company, branch, partnership or individual, and whether you are in an economic zone or export processing zone. Location matters too, so we map the applicable tax law to your activities first.

Key changes for businesses include a reduced 10 percent withholding rate on interest paid to non-residents, additional tax of 150 percent where a payer fails to withhold, a higher advance tax threshold, tighter limits on associated-enterprise interest and debt, a digital presence test for permanent establishment, quarterly VAT returns as the default and new pre-deposit rules for appeals. Individuals face a filing-date rebate and surcharge scale. We review how each change affects the particular client rather than assuming that the previous year's approach still works. Some changes apply from 1 July 2026, others from the 2026-27 assessment year.

For now, yes. Legislation from 2025 provides for revenue policy and revenue administration to be split into two divisions under the Ministry of Finance, and the tax statutes were amended to accommodate this. However, the transfer of functions has not been completed, and taxpayers still file returns, receive notices and pursue appeals through the existing NBR offices. We monitor the changeover and confirm which office has jurisdiction before any filing, response or appeal is made, because a misdirected submission can cost time and, in some cases, procedural rights. Until then, existing procedures and forms continue to apply.

Payments to non-residents for services, royalties, technical know-how, interest and dividends generally require tax to be deducted at source before remittance, and banks will ask for evidence of the tax treatment before sending funds abroad. The rate depends on the type of payment and on whether a double tax treaty applies, which in turn depends on residence certificates and beneficial ownership. VAT on imported services may also arise. We review the contract, the payment and the treaty position so that the remittance is made correctly and the payer is protected. Treaty relief must be documented before payment.

Often it can. Bangladesh tax law contains reduced rates, exemptions, tax holidays for specified sectors and zones, treaty relief and investment allowances, but each comes with conditions that must be met and documented. Lawful planning is about structuring genuine commercial activity so that available reliefs apply, not about artificial arrangements, which carry a real risk of challenge, penalties and reputational harm. We assess what is available, what conditions apply, and what evidence will be needed if the authorities later review the position in an audit or appeal. Good records are the foundation of any defensible tax law position.

Read the notice carefully, note the deadline and avoid responding informally. We review the notice, the underlying returns and records, and the legal basis for the demand or query, then prepare a structured response with supporting documents. Many issues can be resolved at that stage. Where an assessment is made, the appeal route runs to the appellate commissioner, the Taxes Appellate Tribunal and then the High Court Division on questions of law, with pre-deposit requirements at each stage. Alternative dispute resolution may also be available in suitable cases. Act promptly and keep a full copy of everything submitted.

A sale can trigger capital gains tax, withholding by the buyer, stamp duty on share transfers and, for asset sales, VAT and questions about who carries historic liabilities. Buyers will want warranties and indemnities covering past tax, and sellers will want those limited in time and amount. Offshore indirect transfers of Bangladesh companies can also raise questions. We advise both buyers and sellers, carry out tax due diligence, model the tax law consequences of share and asset structures, and draft the tax provisions of the transaction documents. The timing of completion can also matter, whichever side we act for.

For routine salary and investment income, an accountant may be enough. Legal advice becomes valuable where residence status is unclear, where a non-resident Bangladeshi has income or property in two countries, where significant property is bought, sold, gifted or inherited, or where the wealth statement does not reconcile with actual assets. Disclosure decisions and responses to notices also benefit from legal input. We work alongside the individual's accountant so that the tax law analysis and the figures in the return remain consistent with each other. Timing matters: early advice is cheaper than correcting a return later.