Tax Incentives and Investment Conditions slide image

Tax Incentives and Investment Conditions

3.5 Capital gain tax General CAPITAL GAINS TAX RATE % 15% Capital gains tax other than sale of shares of listed companies: - Company - 15% Others -15% or marginal tax rate based on the holding period of the asset Transfer of capital assets are subject to capital gains tax in Bangladesh Transfer of shares of a non-resident company might be subject to capital gain tax in Bangladesh under certain circumstances. CAPITAL GAIN TAX RATES FOR LISTED SECURITY TRANSFERS 15% Non-resident shareholders 10% 5% Resident firms, and Sponsor shareholders and companies shareholder directors of financial institutions 5% Shareholders with at least 10% shareholding excluding sponsor shareholders and shareholder directors 0% General individuals KPMG *Tax rates may vary due to specific conditions EXEMPTION FOR NON-RESIDENTS Non-resident shareholders are exempted from capital gain tax on their transfer of listed securities of Bangladesh companies if they enjoy similar tax exemption in their resident countries Recently, NBR published SRO No-. 156- ACT/Income Tax/2022, dated 1 June 2022, for the tax implications on offshore indirect transfer of shares which provides exemptions on certain transactions, given it fulfils certain outlined conditions. © 2023 Rahman Rahman Huq and KPMG Advisory Services Limited are entities registered in Bangladesh, and member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in Bangladesh. 32 32
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