Are you up to date with the latest TDS Rates Chart for FY 2026-27 in Bangladesh, along with the relevant section references under the Income Tax Act 2023?

Tax Brief
  • TDS applies to 50+ payment types in FY 2026-27 — from salaries and rent to contractor bills, dividends, and non-resident payments.
  • Salary TDS is deducted at the average rate, not a flat percentage — employers must recalculate at the start of each year and after every salary change, and of course at the yearend.
  • Service payments have two rates under Section 90 — 15% for individual consultants, 7.5% for companies and firms — applying the wrong rate is one of the most common compliance errors.
  • Non-resident payments attract higher rates under Section 119 — up to 30% depending on the payment type — and the deduction obligation applies even when the non-resident has no Bangladesh presence.
  • Agricultural commodities (rice, wheat, edible oil, jute and similar goods) attract only 0.5% under Section 89 — not the standard 5% supply rate that many businesses mistakenly apply.

If you work in accounting, finance, or are responsible for processing payments, understanding the applicable TDS (Tax Deducted at Source) rates is essential for compliance. This TDS rates chart is updated in accordance with the Finance Act 2026 and the Withholding Tax Rules 2024 (উৎসে কর বিধিমালা ২০২৪).

In this article, we’ve compiled a comprehensive TDS Rates Chart for FY 2026-27, complete with relevant section references, to make your job easier. At the end of the chart, you’ll also find helpful annexures based on the latest withholding tax regulations.

Free Download — Bangladesh Tax Rate Chart 2026–27

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Each year’s Finance Act can revise existing TDS rates, introduce new payment categories, or remove others. We review the chart annually and update it here as soon as the changes are confirmed — so always check the “last updated” date at the top of this post before relying on a rate for filing.

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SIHeadsRefRate
01SalariesSection 86Average
Salaries (Government)Section 86 (3)Average
02Any payment from Participation Fund, Welfare Fund and Workers’ Welfare Foundation Fund to it’s any beneficiarySection 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 9110%
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 94Please see the respective section
09Travel agentSection 95Please see the respective section
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)   1.5% (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 yarn.   0.5% (If the payment related to local letter of credit (L/C) and any other financing agreement in respect of purchase or procurement of paddy, paddy husk, broken rice, rice bran, wheat, potatoes, livestock, animal bones, poultry, fish, shrimp, meat, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chili, pulses, husk, flour, semolina, salt, edible oil, sugar, seeds, jute, jute sticks, mustard, sesame, raw tea leaves, black pepper, cardamom, cinnamon, clove, bay leaf, eggs, vegetables, lemons, raw banana, liquid milk, skimmed milk powder, poultry feed, pelleted poultry feed, molasses, honey, jaggery, tobacco and leaves and bark of other plants, jaggery (molasses blocks), coal, soybean meal, de-oiled rice bran (DORB), cotton, raw leather, organic fertilizer, organic pesticides, and raw materials for handicraft products.   2% If the payment is related to local letter of credit (L/C) and any other financing agreement in the case of selling goods other than MS billets, cement, iron or iron products, ferrous alloys.
12Payment in excess of premium paid on life insurance policySection 995%
13Insurance commissionSection 1005%
14Fees of survey for general insurance companySection 10115%
15Intrest on savings account and fixed depositSection 10220% – Trust, Association of Person (AoP), Company   10% – Any other person except as above
16Interest payment to a resident except any bank or finance companySection 10410%
17Interest 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)
18Interest on securitiesSection 10610%
19Discount on the real value of Bangladesh Bank BillsSection 107Maximum
20International 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
21Rental incomeSection 10910%
22Services from convention hall, conference centre etc.Section 11010%
23Compensation 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
24Export cash subsidySection 1125%
25Gold, silver, gold ornaments, silver ornaments, precious stones or platinumSection 112Ka0.5%
26Purchase of powerSection 1143%
27Any sum paid by real estate developer to land ownerSection 11515%
28Commission or remuneration paid to agent of foreign buyerSection 1167.5%
29DividendsSection 117Natural person 15%
Other than natural person 20%
30Income from lotterySection 11825%
31Income of non-residentsSection 119Annexure 3
32ImportSection 120Please see Withholding Tax Rules 2024
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 1245%   1% in case of gross bill or 10% on commission received by Freight Forward Agent.
37Transfer of propertySection 125Please see Withholding Tax Rules 2024 for details chart
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.100,000/- not exceeding 108,000 square feet sized brickfield,   Tk.150,000/-108,000 – 124,000 square feet sized brickfield,  
Tk.200,000/-exceeding 124,000 square feet sized brickfield,
Tk. 300,000/- 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 13515% on difference between transfer price and acquired price
47Transfer of shares of any Stock ExchangeSection 13615% on gain
48Member of Stock ExchangesSection 137i) 0.03% on the value of shares, debentures and mutual funds transacted   No tax in case of transfer of any listed sukuk and bond
49Member of registered clubSection 137Ka10%
50Collection of tax from motorvehicles plying commerciallySection 138Annexure 4
51Civil aircraftSection 138KaBDT 1,000,000
52Inland ships engaged in carrying passengers in inland waterSection 139Taka 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 waterSection 139Taka 170 per gross tonnage
Dump barge engaged in carrying goods in inland waterSection 139Taka 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 and CNG station) of oil marketing companies1%
4In case of supply of paddy, paddy husk, rice, wheat, potato, livestock, fish, meat, onion, garlic, peas,
chickpeas, lentils, ginger, turmeric, dried chilies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, seed, jute sticks, mustard, sesame, green tea leaf, black pepper, cinnamon, cardamom, clove, cassia leaf and jute.
0.50%
5In case of supply of gold, silver, gold ornaments, precious stone0.5%
6In case of supply of cotton and yarn.1%
7In case of supply of all types of fruites2%
8Sub-contract by 100% export-oriented garments industry1%
9In case of an industrial undertaking engaged in producing cement, iron or iron products, ferro alloy products except MS Billets2%
10In case of supply of oil by any company engaged in oil refinery, on any amount1%
11In case of company engaged in gas transmission, on any amount3%
12In case of company engaged in distribution gas, on any amount0.6%
13In case of supply of Extra High Voltage Power Cable 33KV to 500KV by local manufacturers having own Vertical Continuous Vulcanization line3%
14In 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%
15In the case of supplying all kinds of recyclable products, including plastic, polymer, battery, scrap, electronic items, paper, wood, etc.1%
16In the case of supplying raw materials used in the recycling industry1%
17In the case of supplying raw materials used in manufacturing and packaging materials3%
18Manufacturing, process or conversion, civil work, construction, engineering and works of similar nature.5%
19Any sypply of tobacco related raw materials to cigarette, bidi, jarda and gul industry.10%
20Goods supplied in any other cases not mentioned above from serial 1 to 18 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 servicea) 15% – natural person b) 7.5% except natural person
2Professional service;a) 15% – natural person b) 7.5% except natural person
3(i) technical services fee; (ii) technical know-how or technical assistance feea) 15% – natural person b) 7.5% except natural person
4(i) Cleaning service (ii) Private security service (iii) Manpower supply servicea) on commission 10% b) on gross bill 1%
5(i) Catering service;
(ii) Creative media service;
(iii) Public relations service;
(iv) Event management service;
(v) Training, workshop, etc.;
(vi) Courier service (vii) Packing and shifting service (viii) Collection and recovery agency (ix) Print and electronic media buying agency (x) any other service of similar nature
On gross bill 4%
6Indenting commission7.5%
7Meeting fees, training fees or honorarium20%
8Mobile network operator10%
9Credit rating service10%
10Motor garage or workshop5%
11Private container port or dockyard service5%
12Shipping agencya) on commission 10% b) on gross bill 1%
13Stevedoring/berth operator/terminal operator/ship handling operator  a) on commission 10% b) on gross bill 5%
14(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;2%
15Wheeling charge for electricity transmission3%
16Internet service5%
17Agent, distributor, agency or channel partner by any names delivering services engaged in mobile financial services10%
18Gross bill including commission or gross bill except commission of freight forward agenta) on commission 10% b) on gross bill 1%
19Any other service which is not mentioned in above from serial 1 to 18.10%

Annexure 3: Rate of deduction from income of non-residents under section 119

SIDescription of services or paymentsRate
1Advisory or consultancy servicea) 20% – natural person b) 10% except natural person
2Pre-shipment inspection service20%
3Professional servicea) 20% – natural person b) 10% except natural person
4Technical services or technical know-how or technical assistancea) 20% – natural person b) 10% except natural person
5Architecture, interior design or landscape design, fashion design or process design15%
6Certification, rating etc.15%
7Charge or rent for satellite, airtime or frequency, rent for channel broadcast20%
8Legal service20%
9Management service including event management20%
10Commission15%
11Royalty, license fee or payments related to intangibles20%
12Interest10%
13Advertisement broadcasting15%
14Advertisement making or Digital marketing10%
15Air transport or water transport except areas mentioned per section 259 and 2606%
16Manufacturing, process or conversion, construction, engineering or any similar works by contractor, sub-contractor and sub-sub-contractor6%
17Supplier6%
18Capital gain15%
19Insurance premium5%
20Rental of machinery, equipment etc.7.5%
21Dividend-
(a) company, fund and trust
(b) any other person not being a company, fund and trust
  20% 25%
22Artist, singer or player30%
23Salary or remuneration30%
24Exploration or drilling in petroleum operations5.25%
25Survey for coal, oil or gas exploration15%
26Fees, etc. of surveyors of general insurance company5.25%
27Any service for making connectivity between oil or gas field and its export point5.25%
28Bandwidth payment10%
29Courier services15%
30Any other payments20%

Annexure 4: Collection of tax from motor vehicles plying commercially under section 138

SIDescription of the vehicleRate (Tk)
1Bus having seats exceeding 5225,000
2Bus having seats not exceeding 5220,000
3Air-conditioned bus50,000
4Double decker bus (non AC)25,000
5Double decker bus (AC)/sleeper bus50,000
6Air-conditioned (AC) minibus/coaster25,000
7Non-AC minibus/coaster12,500
8Truck, lorry or tank lorry having payload capacity exceeding twenty tons30,000
9Truck, lorry or tank lorry having payload capacity exceeding five tons but not exceeding twenty tons50,000
10Truck, lorry or tank lorry having payload capacity exceeding one and half tons but not exceeding five tons15,000
11Truck, lorry or tank lorry having payload capacity not exceeding one and half tons7,500
12Pickup van, human hauler, maxi or auto rickshaw7,500
13Crane, excavator, dozer, roller, concrete mixer, and all heavy motor vehicles or special-purpose vehicles50,000
14Air-conditioned taxicab15,000
15Non-AC taxicab7,500

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