Bangladesh Freelancer Tax Calculator
Calculate your freelancer income tax with the IT/software 50% exemption benefit. Includes source tax on foreign remittance.
With vs Without IT Exemption
Bangladesh Freelancer Tax Rules 2026
Bangladesh has become one of the top freelancing countries in the world, with over 650,000 active freelancers earning foreign currency. The government has introduced several tax incentives to support this growing sector. Understanding your tax obligations as a freelancer is essential to stay compliant and maximize your take-home income.
IT/Software Income Tax Exemption
Under the Bangladesh IT/ITES policy, income from IT services, software development, and ITES (IT Enabled Services) enjoys a 50% tax exemption on income until June 2030. This means only half of your freelance IT income is subject to income tax. This exemption applies to software development, web development, app development, data entry, graphic design, digital marketing, and other IT-related services.
Source Tax on Foreign Remittance
When freelancers receive foreign income through banking channels (Payoneer, bank wire, etc.), a 10% source tax is deducted at the time of remittance. This source tax can be adjusted against your final income tax liability. If your total tax liability is less than the source tax already deducted, you may claim a refund. Always ensure you receive remittances through proper banking channels to qualify for the IT exemption.
Freelancer Tax Calculation
Annual Income = Monthly USD Income x Exchange Rate x 12
Taxable Income = Annual Income x 50% (after IT exemption) - Expenses
Tax = Apply income tax slabs to taxable income
Source Tax = Annual Income x 10% (deducted at remittance)
How to Register as a Freelancer for Tax
First, obtain a TIN (Tax Identification Number) from the National Board of Revenue (NBR) website at nbr.gov.bd. Register your freelance activity under the appropriate business category. Open a freelance income account at any scheduled bank. Ensure all foreign income comes through this account. File annual tax returns by November 30 each year. Maintain records of all income, expenses, and source tax deductions.
TIN Requirements for Freelancers
A TIN is mandatory for any individual earning taxable income in Bangladesh. Freelancers need a TIN to file tax returns, claim source tax adjustments, and enjoy the IT exemption benefit. You can get a TIN online at the NBR e-TIN portal. Required documents include NID, passport-size photo, and proof of address.
Deductible Expenses
Freelancers can deduct business-related expenses from their taxable income including internet bills, computer and equipment costs (depreciated), office rent, software subscriptions, professional development courses, and electricity for home office. Keep receipts and records for all deductible expenses to present during tax assessment.