Tax on property income in Bangladesh
November 18, 2016
Effective Tax Rate on Rental Income
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Global Property Guide research
Nonresidents are taxed on their Bangladesh-sourced income. Married couples are taxed separately.
The tax year or assessment year in Bangladesh is from 01 July of one year to June 30 of another year. The tax year 2015-2016 is from 01 July 2015 to 30 June 2016. The tax year 2016-2017 is from 01 July 2016 to 30 June 2017.
Income earned by nonresident individuals is taxed at a flat rate of 30%.
Rental income earned by nonresident individuals is taxed at a flat rate of 30%.
Capital gains are considered as ordinary income and taxed at the standard income tax rate. Taxable capital gains are calculated by deducting acquisition costs and related expenses from the sale proceeds.
Nonresidents realizing capital gains from the sale of property in Bangladesh are generally taxed at a flat rate of 30%.
Properties held for more than five years prior to the sale may be subject to a special flat tax rate of 15%, if this method yields a lower tax liability.
Property tax is levied on all properties in Bangladesh. Property tax is administered and collected by the local land revenue office. Property tax rates vary by location and property classification.
Income and capital gains earned by companies are generally taxed at a flat rate of 35%. Applicable income tax rates actually vary depending on the classification of the company and the type of income or capital gains. Taxable income is computed by deducting income-generating expenses from the gross profits.