Corporate Tax

TDS Rates Chart FY 2024-25 with Section Reference in Bangladesh

July 8, 2024
TDS Rates Chart FY 2024-25

Do you know the updated TDS rates chart FY 2024-25 in Bangladesh with section references as per Income Tax Act 2023?

The people who are working in the accounts and finance department, responsible for making the payments, require to know the TDS rates to deduct or collect tax at source during making the payment to comply with the Income Tax Act 2023.

In this article, I have compiled full TDS rates chart FY 2024-25 in Bangladesh including section references for you according to Income Tax Act 2023 and Withholding Tax Rules 2024. At the end of the TDS rates chart, you will also find the related annexures which are based on Withholding Tax Rules 2024.

You will be happy to know that I have also published VAT rates chart, SD rates chart and VAT exempted goods and services in this blog. But the most important issue is that when you will make the payment, you have to know how the tax shall be calculated in different situations. Sometimes, you may face difficulties in complex tax issues.

There are few changes in the TDS rates chart FY 2024-25 due to enactment of the new Income Tax Act 2023 and Withholding Tax Rules 2024 (Utse Kor Bidhimala 2024). After incorporating all the changes, full TDS rates chart FY 2024-25 with section references are presented below in table.

Please rotate your smartphone screen for a friendly view of the below table. You may also download a PDF copy of this full TDS rates chart FY 2024-25.

SIHeadsRefRate
01SalariesSection 86Average
Salaries (Government)Section 86 (3)Average
02Payment to Participation Fund, Welfare Fund and Workers’ Welfare Foundation FundSection 8810%
03(a) Execution of contract, other than a contract for providing or rendering a service mentioned in under sections of Part 7 of the Act.
(b) Supply of goods;
(c)Manufacture, process or conversion;
(d) Printing, packaging or binding
Section 89Annexure 1
04Deduction from payment of servicesSection 90Annexure 2
05Payment for intangibles assetsSection 91Annexure 3
06Advertisement in mediaSection 925%
07Payment to actors, actresses, producers, etc.Section 93(a)10% on the payment in
case of purchase of film,
drama, any kind of television
or radio program
 
(b)10% on the payment to
actor/actress
08Commission, discount or feesSection 94See lesson 2.6
09Travel agentSection 95See lesson 3.1
10Commission of letter of creditSection 965%
11Payment against local L/CSection 973% (If purchase of goods for the purpose of trading or reselling after process or conversion)

1% (Payment against the invoice or sale of goods to distributor)  

2% (If the payment related to local letter of credit (L/C) and any other financing agreement in respect of purchase or procurement of all kinds of fruits and computer or computer accessories.

1% (If the payment related to local letter of credit (L/C) and any other financing agreement in respect of purchase or procurement of rice, wheat, potato, onion, garlic, peas,
chickpeas, lentils, ginger, turmeric, dried chilies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, cassia leaf, jute, cotton and yarn.
12Payment by cellular mobile phone operatorSection 9820%
13Payment in excess of premium paid on life insurance policySection 995%
14Insurance commissionSection 1005%
15Fees of survey for general insurance companySection 10115%
16Intrest on savings account and fixed depositSection 10220% – Trust, Association of Person (AoP), Company
 
10% – Primary Educational Institute, Chartered Accountants or Cost and Management Accountants or Chartered Secretaies Institute  

10% – Any other person except as above
17Interest income on residentSection 10410%
18Interest on saving instrumentsSection 10510%
(No withholding tax on interest on pensioners savings certificate if cumulative investment in such certificate at the end of the income year does not exceed tk. 5 lakh)
19Interest on securitiesSection 1065%
20Discount on the real value of Bangladesh Bank BillsSection 107Maximum
21International gateway service in respect of phone call.Section 108(1) 1.5% of total revenue received by IGW services operator.

(2) 7.5% of revenue paid or credited to ICX, ANS, BTRC and others

(3) 7.5% on the whole amount so paid or credited at the time of payment or credit
22Rental incomeSection 1095%
23Services from convention hall, conference centre etc.Section 1105%
24Compensation against acquisition of propertySection 111(a) 6% of the amount of such compensation against the immovable property situated within a city corporation, paurashava or cantonment board  

(b) 3% of the amount of such compensation against the immovable property situated outside the jurisdiction of a city corporation, paurashava or cantonment board
25Export cash subsidySection 11210%
26Purchase of powerSection 1146%
27Any sum paid by real estate developer to land ownerSection 11515%
28Commission or remuneration paid to agent of foreign buyerSection 11610%
29DividendsSection 117Company – applicable rate for such company
Resident/nonresident Bangladeshi
person other than company
-If TIN, 10%
-If No TIN, 15%
30Income from lotterySection 11820%
31Income of non-residentsSection 119Annexure 4
32ImportSection 120Appendix 5
33Recruiting agentsSection 12110% BDT 50,000 as advance tax for license or renew of license
34C & F AgentSection 12210%
35Deduction of tax from export proceedsSection 1231% of the total export proceeds
36Any income in connection with any service provided to any foreign person by a resident person;   No tax against sale of software or services if it is exempted under paragraph 21 of part 1 of the sixth schedule, or excluded from total income by paragraph 17 and 33 of Part 1 of the Sixth Schedule.Section 1247.5%   10% in case of commission received by Freight Forward Agent but 2.5% in case of gross bill including commission.
37Transfer of propertySection 125Appendix 6
38Collection of tax from developer or real estate developerSection 126i) in case of building, house, flat, apartment or floor space constcructed or used for residential pupose – BDT 1,600 per square metre

ii) in case of building, house, flat, apartment or floor space constcructed or used not for residential pupose – BDT 6,500 per square metre

iii) in case of land with building, house, flat, apartment or floor space – 5% of deed value   provided that the tax shall not exceed the above rates.
39Collection of Tax from lease of propertySection 1284%
40Manufacturer of nonmechanical cigarette (Bidi)Section 12910% of the value of banderols
41Brick ManufacturerSection 130Tk.80,000/- not exceeding 108,000 square feet sized brickfield,

Tk.120,000/-108,000 – 124,000 square feet sized brickfield,   Tk.160,000/-exceeding 124,000 square feet sized brickfield,

Tk. 220,000/- brickfield not mentioned as above
42Renewal of trade license by City Corporation or PaurashavaSection 131Tk. 3,000/-for Dhaka North City
Corporation, Dhaka South City Corporation & Chittagong City Corporation;

Tk. 2,000 for any other city corporation,  
Tk. 1,000 for any paurashava of any district headquarters;

Tk. 500 in any other paurashava
43Shipping business of a residentSection 1325% of total freight received or receivable in or out of Bangladesh

3% of total freight received
or receivable from services
rendered between two or
more foreign countries
44Sale by public auction  Section 13310% of sale price
45Share transferSection 13415% on gain
46Transfer of securitiesSection 13510% on difference between transfer price and acquired price
47Transfer of shares of any Stock ExchangeSection 13615% on gain
48Member of Stock ExchangesSection 137i) 0.05% on the value of shares, debentures and mutual funds transacted  
No tax in case of transfer of any listed sukuk and bond
49Collection of tax from motorvehicles plying commercially138Annexure 5
50Inland ships engaged in carrying passengers in inland water139Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters)
Cargo, container (multipurpose) and coaster engaged in carrying goods in inland water139Taka 170 per gross tonnage
Dump barge engaged in carrying goods in inland water139Taka 125 per gross tonnage

Annexure 1: Rate of deduction under section 89

(a) 10% – supply of cigarettes, bidi, zarda, tobacco leaves, gul including any form of tobacco products.

(b) Manufacturing, process or conversion, construction, engineering or any similar works shall be at 7% on base value of rendering service under any contract. –

(c) the rate of deduction from the following classes of persons shall be at the following rate:

SIDescription Rate
1In case of an industrial undertaking engaged in the production of MS Billets and locally procured MS Scrap0.5%
2In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant0.60%
3In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount1%
4In case of supply of paddy, rice, wheat, potato, fish, meat, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, jute, cotton, yarn and all kinds of fruits1%
5In case of supply of all types of fruites2%
6In case of an industrial undertaking engaged in producing cement, iron or iron products, ferro alloy products except MS Billets2%
7In case of supply of oil by any company engaged in oil refinery, on any amount2%
8In case of company engaged in distribution gas, on any amount2%
9In case of company engaged in gas transmission, on any amount3%
10In case of supply of Extra High Voltage Power Cable 33KV to 500KV by local manufacturers having own Vertical Continuous Vulcanization line3%
11In case of supply of books to a person other than the Government, or any authority, corporation or body of the Government, including all of its attached and sub-ordinate offices3%
12In case of supply of recycled lead3%
13In case of supply of industrial raw materials to a manufacturer3%
14Goods supplied in any other cases not mentioned above from serial 1 to 12 and in all other cases per section 895%

Annexure 2: Rate of deduction from the payment of services under section 90

SIDescription of service and paymentRate
1Advisory or consultancy service10%
2(i) Professional service; (ii) technical services fee; (iii) technical know-how or technical assistance fee10%
3(i) Catering service;
(ii) Cleaning service;
(iii) Collection and recovery agency;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event management service;
(ix) Training, workshop, etc.;
(x) Courier service (xi) Packing and shifting service (xii) any other service of similar nature-
(a) on commission or fee
(b) on gross bill amount
                       









10% 2%
4Media buying agency service
(a) on commission or fee
(b) on gross bill amount
 
10% 0.65%
5Indenting commission8%
6Meeting fees, training fees or honorarium10%
7Mobile network operator, technical support service provider or agent of mobile banking operation12%
8Credit rating service10%
9Motor garage or workshop8%
10Private container port or dockyard service8%
11Shipping agency commission8%
12Stevedoring/berth operation commission-
On commission or fee
On gross bill amount
 
10%
5%
13(i) Transport service, vehicle rental service, carrying service and repair & maintenance service;
(ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service;
5%
14Wheeling charge for electricity transmission3%
15Internet service10%
16Agent, dirtibutor, agency or channel partner, by any names deliverying services engaged in mobile financial services10%
17Commission of freight forward agent10%
18Gross bill including commission or gross bill except commission of freight forward agent2.5%
19Any other service which is not mentioned in above from serial 1 to 18.10%

Annexure 3: Rate of deduction under section 91

Description of paymentRate
Where base amount does not exceed taka 25 lakh10%
Where base amount exceeds taka 25 lakh12%

Annexure 4: Rate of deduction from income of non-residents under section 119

SIDescription of services or paymentsRate
1Advisory or consultancy service20%
2Pre-shipment inspection service20%
3Professional service, technical services, technical know-how or technical assistance20%
4Architecture, interior design or landscape design, fashion design or process design20%
5Certification, rating etc.20%
6Charge or rent for satellite, airtime or frequency, rent for channel broadcast20%
7Legal service20%
8Management service including event management20%
9Commission20%
10Royalty, license fee or payments related to intangibles20%
11Interest20%
12Advertisement broadcasting20%
13Advertisement making or Digital marketing15%
14Air transport or water transport except areas mentioned per section 259 and 2607.5%
15Manufacturing, process or conversion, construction, engineering or any similar works by contractor, sub-contractor and sub-sub-contractor7.5%
16Supplier7.5%
17Capital gain15%
18Insurance premium10%
19Rental of machinery, equipment etc.15%
20Dividend-
(a) company, fund and trust
(b) any other person not being a company, fund and trust
  20% 30%
21Artist, singer or player30%
22Salary or remuneration30%
23Exploration or drilling in petroleum operations5.25%
24Survey for coal, oil or gas exploration20%
25Fees, etc. of surveyors of general insurance company5.25%
26Any service for making connectivity between oil or gas field and its export point5.25%
27Bandwith payment10%
28Courier services15%
29Any other payments20%

Annexure 5: Collection of tax from motorvehicles plying commercially under section 138

SIDescription of the vehicleRate (Tk)
1Bus having seats exceeding 5216,000
2Bus having seats not exceeding 5211,500
3Air-conditioned bus37,500
4Double decker bus16,000
5Air-conditioned (AC) minibus/coaster16,000
6Non-AC minibus/coaster6,500
7Prime mover24,000
8Truck, lorry or tank lorry having payload capacity exceeding five tons16,000
9Truck, lorry or tank lorry having payload capacity exceeding one and half tons but not exceeding five tons9,500
10Truck, lorry or tank lorry having payload capacity not exceeding one and half tons4,000
11Pickup van, human hauler, maxi or auto rickshaw4,000
12Air-conditioned taxicab11,500
13Non-AC taxicab4,000

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1 Comment

  • Reply Md.Masum Billah July 15, 2024 at 1:58 PM

    outstanding

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