The corporate tax system in Bangladesh is essentially based on the Income Tax Ordinance, 1984. Companies are characterized according to their residency status; resident companies are imposed with taxes on worldwide income, while non-resident ones are obliged to pay income sourced income only within Bangladesh. The corporate income tax rates vary based on industry and ownership structure. Publicly traded companies are levied with lower corporation tax rates, while higher corporation tax rates are levied on non-listed companies, financial institutions, and telecom operators. There are some sector-specific incentives and tax holidays available, at least in selected industries, especially in Export Processing Zones and economic zones. Companies are also obliged to pay VAT, withholding taxes, and annual tax returns.
