Corporate taxes are going down for the third time in a row. Consideration is being given to reduce corporate tax in the budget for the next financial year. According to the responsible sources of the National Board of Revenue (NBR), the corporate tax may be reduced at the rate of 2.75 to 2 percent in the next financial year. This tax reduction benefit will only be available to companies listed on the stock exchange and not listed on the stock exchange. In other cases, corporate taxes remain unchanged.
At present, the corporate tax rate of a publicly-traded company is 22.5 percent which might be reduced between 20.5 to 21.75 percent. On the other hand, for companies not listed on the stock market (not publicly traded), the corporate tax rate is now 30 percent which might be reduced from 27 to 28.25 percent.
According to the Bangladesh Bureau of Statistics (BBS) latest GDP report, compared to the previous year, the public-private investment will increase by BDT 1 lakh 64 thousand crores in the current financial year. Among them, the private sector investment will increase by BDT 1 lakh 20 thousand crores at the end of the year based on the current price.
According to NBR sources, tax rates on other areas of corporate tax will remain unchanged in the next budget. However, in the case of an individual company, there is a possibility of reducing the corporate tax from 25 percent. Corporate mobile phone companies, cigarette and tobacco manufacturers, banks, insurance, and financial institutions are not changing. At present, the corporate tax rate of mobile companies is 45 percent. However, due to being listed on the stock market, mobile phone operators Grameenphone and Robi have a tax rate of 40 percent. On the other hand, the tax rate of cigarette and tobacco manufacturing companies is 45 percent.
The corporate tax rate of banks, insurance, and financial institutions listed on the stock exchange is 37.5 percent. 40% tax rate imposed on non-listed companies. However, there are special tax exemptions for new banks. According to NBR sources, 70-80 percent of corporate tax is collected from organizations.
As of mid-April, the latest number of taxpayer companies registered with the NBR (TIN) is 1 lakh 66 thousand 428. TIN has been given to about 90,000 new companies in nine months in the last year. According to NBR rules, all companies must submit returns regardless of profit or loss. According to NBR sources, 28 to 30 thousand companies submit tax returns every year. According to NBR sources, in the last financial year (2020-21), a corporate tax of BDT 52,545 crore was collected, and 29,785 companies submitted returns.