Income Tax for Non-Resident Bangladeshis and Expatriates 2026: Residency, Rates, Remittances and Treaty Relief
Whether Bangladesh taxes you, and at what rate, turns on two questions that people regularly get wrong: are you resident for the year, and is the income Bangladesh-sourced? A Bangladeshi working in Dubai, a foreign engineer on a two-year posting in Chattogram and a London-based NRB with a flat in Gulshan are three different cases under the Income Tax Act 2023. This guide separates them, with the sections, and shows what each needs to file.
- Resident = 183 days or more in Bangladesh in the income year, or 90 days in the year plus 365 days in the preceding four years (s.2(45)). Residents are taxed on worldwide income; non-residents only on income arising in Bangladesh.
- Non-resident foreign nationals pay a flat 30% on Bangladesh income; non-resident Bangladeshis are charged at the ordinary slabs (tax-free Tk 4 lakh, 10% to 30%), as the Finance Act 2026 schedule provides.
- Wage remittances sent home through banking channels are exempt in the recipient's hands and carry the 2.5% government incentive; the sender's foreign salary is outside the Bangladesh net while non-resident.
- A non-resident natural person with no fixed base in Bangladesh need not file (s.166(2)(h)); but an NRB with rent, interest, dividends or land here files, and treaty relief, a tax residency certificate and a departure clearance each have their own procedure.
In this guide: The residency test and why the dates matter · Rates: who pays what · Remittances: the exemption and the incentive · Treaty relief, TRC and TCC · What an NRB with assets in Bangladesh must do
The short answer
The Act taxes a resident on total income wherever it arises (s.27) and a non-resident only on income that accrues, arises or is received in Bangladesh, or is deemed to. Residence is purely a day-count: 183 days in the income year (1 July to 30 June), or 90 days in the year together with 365 days across the four previous years. Citizenship is irrelevant to residence but relevant to rate: a non-resident who is not a Bangladeshi pays 30% flat without the tax-free limit; a non-resident Bangladeshi is charged on the ordinary slab rates. Foreign nationals working here under a work permit are almost always resident after their first year and are taxed on the whole salary package, including housing and benefits.
The residency test and why the dates matter
Count the days physically present in Bangladesh between 1 July and 30 June. Arrival and departure days both count. Someone who lands on 1 January for a posting is non-resident for that first year (181 days at most) and resident from the next. The 90-day limb catches frequent visitors: an NRB who spends three months a year here and has done so for the previous four years is resident, and worldwide income becomes assessable. Keep passport stamps and airline records; the circle asks for them when a return claims non-residence. A person resident in two countries in the same year looks to the tie-breaker in the relevant treaty (permanent home, centre of vital interests, habitual abode, nationality).
Rates: who pays what
| Status | Income taxed | Rate | Files a return? |
|---|---|---|---|
| Resident (any nationality) | Worldwide | Slabs: Tk 4 lakh free, then 10%, 15%, 20%, 25%, 30%; minimum tax Tk 5,000 | Yes if income above the limit or on the s.166 list |
| Non-resident Bangladeshi | Bangladesh-source only | Slab rates (Finance Act 2026) | Yes if Bangladesh income is taxable or a s.264 PSR is needed (property, bank, land) |
| Non-resident foreign national | Bangladesh-source only | 30% flat, no tax-free limit, no rebate | Not if no fixed base here and tax was withheld at source (s.166(2)(h)); otherwise yes |
A non-resident with no permanent establishment in Bangladesh need not file, and tax withheld from such a person is final. Since 2026 a non-resident with 100,000 or more online customers or subscribers in Bangladesh has a digital permanent establishment; residence and PE of a treaty-country person are decided under the DTAA. Withholding on payments to non-residents (s.119) is generally final and runs at 20% for most services, 30% for several categories including dividends, and treaty rates where a certificate from the NBR is obtained in advance. A foreign consultant paid by a Bangladeshi company therefore usually has the matter closed by the company’s deduction; the company must obtain the NBR’s certificate first to apply a lower treaty rate.
Remittances: the exemption and the incentive
Money an NRB earns abroad while non-resident is outside Bangladesh’s net; what the family receives is not their income, and remittances through the banking channel are exempt in the recipient’s hands under the Sixth Schedule. The 2.5% government incentive on wage-earner remittances continues. Two cautions. The exemption is for remittance of foreign earnings: a resident who routes Bangladesh business income through an overseas account and brings it back labelled “remittance” is not protected. And large credits into a resident relative’s account need an explanation in that relative’s wealth statement (see our IT-10B guide) — keep the remittance certificates from the bank.
Treaty relief, TRC and TCC
Bangladesh has double taxation agreements with roughly 38 to 43 countries (the NBR list and the treaties actually in force differ; we are reconciling the current count), including the UK, USA (shipping only), Canada, India, Malaysia, Singapore, UAE, Saudi Arabia, Japan, Korea, China and most of Europe. Relief is claimed in the return with evidence of the foreign tax paid; for withholding at a treaty rate, the payer applies to the NBR for a certificate first. An NRB who needs to prove Bangladesh residence to a foreign tax authority applies to the circle for a Tax Residency Certificate with the return and passport; allow several weeks. A foreigner leaving Bangladesh after employment needs a tax clearance certificate under s.193 (the TCC portal at tcc.nbr.gov.bd handles applications), and the airline or immigration may ask for it; the employer’s final deduction and return are the inputs.
What an NRB with assets in Bangladesh must do
- Rent from a flat: taxable Bangladesh income after the 25% repairs allowance; the tenant deducts 5% at source; file a return and, since 2026, claim credit for the deduction.
- FDR and savings interest: 10% withheld by the bank (20% for a company), creditable on the return; the bank will ask for a PSR to keep the rate at 10%.
- Dividends and listed shares: dividends are withheld at 15% (Finance Act 2026); gains on listed shares are exempt up to Tk 50 lakh a year and 15% above.
- Selling land or a flat: tax collected at registration under s.125 and now creditable rather than final; see our specific incomes guide.
- TIN and return: obtain a TIN online with the NID or passport; file the return by the dates in our filing guide; a power of attorney lets a relative or us file and appear.
Residency opinion
We fix your status for the year from travel records, with the treaty tie-breaker where two countries claim you.
Return and credits
A Bangladesh return covering rent, interest, dividends and land, with source deductions credited and treaty relief claimed.
Certificates
Tax residency certificates for foreign authorities; s.193 clearance for expatriates leaving.
Employer side
Payroll withholding, work-permit tax and the final return for foreign staff.
Common questions
Who is a resident for Bangladesh income tax?
A person present in Bangladesh for 183 days or more in the income year, or 90 days in the year plus 365 days in the previous four years (s.2(45) of the Income Tax Act 2023). Nationality does not matter for residence.
Does an NRB working abroad pay tax in Bangladesh on foreign salary?
Not while non-resident: only Bangladesh-source income is taxed. Remittances sent home through banks are exempt in the recipient's hands and earn the 2.5% incentive.
What tax rate applies to a foreigner working in Bangladesh?
A non-resident foreign national pays 30% flat on Bangladesh income. Once resident (usually from the second year), the ordinary slab rates apply to worldwide income, including the full salary package.
Does a non-resident have to file a return?
A non-resident natural person with no fixed base in Bangladesh need not (s.166(2)(h)). An NRB with rent, interest, dividends or a land sale here should file to claim credit for source deductions and to obtain the PSR banks and registrars ask for.
How do I claim double taxation relief?
In the return, with proof of the foreign tax paid, under the relevant agreement. For a lower withholding rate at source, the payer must obtain an NBR certificate in advance.
How do I get a tax residency certificate from Bangladesh?
Apply to your tax circle with the filed return and passport. Allow several weeks.
Does an expatriate need tax clearance to leave Bangladesh?
Yes, under s.193 a person leaving after a stay for employment or business obtains a clearance certificate; applications run through tcc.nbr.gov.bd.
Is remittance taxable in Bangladesh?
Wage-earner remittances through banking channels are exempt in the recipient's hands. Routing resident Bangladesh income through a foreign account and bringing it back does not qualify.
More in Tax, VAT & Customs
Income tax returns, TIN, VAT and BIN, Mushak forms, customs duty and what to do when NBR sends a notice.
Abroad, with income or property in Bangladesh?
We will settle your residency, file the return and obtain the certificates while you stay where you are. A written assessment costs nothing.
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