The National Board of Revenue (NBR) has issued a press release outlining a significant update to the taxation of capital gains in Bangladesh. Effective immediately, the tax rate on annual capital gains exceeding Tk 50 lakh has been fixed at a uniform rate of 15%, irrespective of the duration of asset ownership.
Previous Tax Structure
Under the previous tax regime, capital gains were subject to varying rates based on the holding period:
- For assets sold within five years: The tax rate was set at 30%, resulting in an effective rate of 40.5% after the application of surcharges.
- For assets held for over five years: The tax rate was reduced to 15%, with an effective rate of 20.25% after accounting for surcharges.
Implications of the New Rate
This reform aims to streamline the capital gains tax process, providing a more straightforward and predictable framework for investors. By establishing a flat rate, the NBR intends to promote a more favorable investment climate and encourage long-term investment strategies.
Investors and stakeholders are encouraged to review the implications of this new tax policy and consider consulting with tax professionals to understand how these changes may affect their investment strategies.
For further inquiries or detailed guidance, please refer to the official NBR website or contact a qualified tax advisor.
