• Acknowledging the need for clarity among international stakeholders, the National Board of Revenue (NBR) officially released the authentic English text of the Income Tax Act 2023 through government gazette notification SRO No-404-Law/2025, dated October 16, 2025. This release addresses previous concerns regarding the lack of an official English version, facilitating better understanding and compliance for foreign investors and multinational entities operating in Bangladesh.
  ⚖️ Key Amendments in the Finance Ordinance 2025
  📄 Accessing the Income Tax Act 2023
  🏢 Structural Reforms in Revenue Administration

  The Finance Ordinance 2025, issued on June 2, 2025, introduced several amendments to the Income Tax Act 2023, effective from July 1, 2025. Notable changes include:

  The official English version of the Income Tax Act 2023 is available for download from the NBR's website. For detailed information on the Act, including its provisions, amendments, and related regulations, visit the NBR's Income Tax Acts page:

  Bangladesh's tax landscape is undergoing significant transformation with the introduction of the Income Tax Act 2023 and subsequent amendments through the Finance Ordinance 2025. These changes reflect the government's commitment to modernizing tax administration, enhancing compliance, and fostering a conducive environment for investment.

  For businesses and individuals operating in Bangladesh, staying informed about these developments is crucial for ensuring compliance and leveraging available benefits.

📘 Official English Version Released

In a significant move towards modernizing its tax framework, Bangladesh enacted the Income Tax Act 2023, replacing the outdated Income Tax Ordinance of 1984. This new legislation, effective from July 1, 2023, introduced comprehensive reforms in direct taxation, aiming to enhance transparency, compliance, and efficiency in tax administration.

Tax Rate Adjustments: Revised tax rates for individual taxpayers, including non-resident Bangladeshis and Hindu Undivided Families.

Surcharge Provisions: Introduction of surcharges for individuals with net worth exceeding BDT 4 crore, with varying rates based on asset thresholds.

Dividend Distribution Clarifications: Clarification that post-tax profit distributions in joint ventures to co-venturers other than individuals are not considered dividends.

In a bid to streamline tax administration, the government dissolved the NBR on May 13, 2025, splitting its functions into two new divisions under the Ministry of Finance:

Revenue Policy Division (RPD): Tasked with monitoring the implementation of tax laws and assessing the tax collection situation.

Revenue Management Division (RMD): Responsible for the actual collection of revenues.

This restructuring aims to enhance efficiency and accountability in revenue management.