In order to facilitate rapid expansion of trade and commerce, corporate tax rate has been reduced from 32.5% to 30% through Finance Act 2021. In this new budget, Finance Minister had proposed a further reduction of the existing corporate tax rates.
He further said, “In this case, all receipts and income must be received through bank transfer and all expenditures and investments in excess of BDT 12 lacs must be made through bank transfer. Here, I propose to reduce the tax rate for non-listed company from 30% to 27.5%. Also, to facilitate formalization of the economy and to incentivize formation of One Person Company (OPC), I propose to reduce the rate of tax for OPCs from 25% to 22.5%. For the sake of development of the stock market and attracting investment, I propose a tax rate of 20% in place of existing 22.5% for a listed company that transfers more than 10% of its paid-up capital through Initial Public Offering (IPO). I, however, propose the tax rate to be 22.5% for a listed company that transfers ten percent or less than ten percent of its paid-up capital through IPO. But in this case, the tax rate would be 25% instead of 22.5% if the company fails to comply with the conditions mentioned earlier.”