Commonwealth Trade MSME Exporter Portal

馃嚙馃嚛 Bangladesh 路 Category 6 of 9

Tax Information

Verified 路 5 May 2026

Exports are broadly VAT zero-rated and supported by bonded warehousing, duty drawback and cash incentives, but exporters still owe source tax on export proceeds.

Overview

Bangladesh's tax system is built to encourage exports, but a small exporter still has obligations to manage. Value Added Tax is administered by the NBR VAT wing; exports are zero-rated, meaning you charge no VAT on the export sale and can claim back input VAT, which makes correct BIN registration and record-keeping essential. Imported inputs used in export production are relieved either through bonded warehouse facilities or the Duty Exemption and Drawback Office (DEDO) drawback scheme. Against this, banks deduct a tax at source on repatriated export proceeds (the rate for garments and other sectors is set annually in the Finance Act), and there are sector cash-incentive/subsidy schemes administered via Bangladesh Bank and EPB. Because Bangladesh graduates from LDC status in late 2026, some export subsidies face WTO-driven phase-out, so confirm current rates with NBR and your bank. Keep clean books, file your income-tax return, and reconcile every EXP form so your proceeds and tax match.

Key requirements

  1. 1

    VAT zero-rating on exports

    Exports are zero-rated; register for a Business Identification Number (BIN) and keep input-VAT records to claim refunds/credits.

  2. 2

    Tax deducted at source on proceeds

    AD banks withhold source tax on repatriated export earnings at the rate fixed in the current Finance Act; reconciled against your annual return.

  3. 3

    Bonded warehouse / duty drawback

    Recover or avoid import duty on inputs used in exports through bonded facilities or DEDO drawback claims.

  4. 4

    Cash incentives / export subsidy

    Eligible sectors receive cash incentives disbursed through Bangladesh Bank and EPB; subject to phase-down as LDC benefits end.

  5. 5

    Annual return and TIN compliance

    Hold a valid e-TIN, file the annual income-tax return and maintain audited accounts to keep incentives and banking facilities.

Documents you will need

  • e-TIN certificate
  • VAT / BIN registration certificate
  • EXP form and proceeds realisation certificate (PRC)
  • Bonded warehouse licence or DEDO drawback application
  • Cash-incentive application with audit certificate
  • Annual income-tax return acknowledgement
  • Bank statements evidencing repatriation