Written by Md Rakib Hassan — Income Tax Practitioner with 10+ years of tax compliance and audit experience across Bangladesh and the UK. Former accounts manager at a UK chartered accounting firm managing 1,000+ clients, with direct experience resolving multi-year tax audit disputes with HMRC and the NBR. Currently Finance Controller at a UK-based multinational tech group.
Every finance professional, accounts payable officer, and tax practitioner in Bangladesh needs one thing at their desk: a clear, up-to-date reference for TDS rates in Bangladesh. Getting these rates wrong — even by 1% — can trigger the NBR’s surcharge provisions, disqualify your company from reduced tax rates, or create a compliance gap that surfaces in audit.
This guide covers the complete TDS rates for FY 2025–26 as per the Income Tax Act 2023, updated by the Finance Ordinance 2025, SRO No. 157-Law/Income Tax-12/2025 (dated 26 May 2025) and SRO No. 269-Law/Income Tax-14/2025 (dated 24 June 2025). You can download the full TDS rates reference list here. (Link to your PDF)
What Changed in FY 2025–26? Key Updates You Must Know
Before diving into the rate tables, here are the most important structural changes that affect how TDS rates are applied this year:
1. SRO 157 and SRO 269 amend the base TDS Rules 2024 The underlying TDS framework remains SRO No. 161-Law/Income Tax-36/2024 (dated 29 May 2024), but it has been materially amended by two new SROs in 2025. Any team still working from the original 2024 SRO without these updates is operating on outdated rates.
2. TDS returns are now quarterly, not monthly Under the Finance Ordinance 2025 amendment to Section 177(3), TDS/TCS returns must be filed quarterly — within prescribed due dates of the financial year — effective from Assessment Year 2025–26. This reduces the filing burden but requires better quarterly reconciliation.
3. Improper TDS treated as taxable special income The Finance Ordinance 2025 explicitly provides that disallowances for improper TDS will now be taxed at the regular rate, reinforcing the emphasis on ensuring correct deductions at source.
4. Cash payment surcharge remains in force Under Section 142, ITA 2023, any payment made in cash (rather than banking channels) still attracts a 50% higher TDS rate. Similarly, failure by the payee to present proof of return submission (PSR) adds another 50% surcharge.
5. Banks and MFS providers exempt from Section 90 As per Rule 4 of the TDS Rules 2024, services provided by banks, insurance companies, financial institutions, and Mobile Financial Service (MFS) providers such as bKash, Rocket, and Nagad are exempted from tax deduction under the service payment rules.
Section 89 — TDS from Contractors and Suppliers (Rule 3)
Section 89 is the most commonly triggered TDS provision in Bangladesh. It covers payments for goods supply, manufacturing, construction, processing, and most contract work.
The base rule: TDS applies on the base value (ভিত্তিমূল্য) — which is the highest of the contract value, invoice amount, or actual payment. If VAT is included in the bill, VAT must be stripped out first before applying the TDS rate.
Section 89 — Supply of Goods and Services Rate Table
| Category | TDS Rate |
|---|---|
| MS Billet for production and locally purchased MS scrap | 0.5% |
| Petroleum oil & lubricant supply from oil marketing company | 0.6% |
| Oil marketing company’s dealer or agent supply | 1% |
| Agricultural products: rice, paddy, wheat, potato, fish, meat, onion, garlic, lentil, ginger, turmeric, dried chilli, salt, maize, flour, cooking oil, sugar, jute, raw tea leaves, spices, etc. | 0.5% |
| Cotton and yarn supply | 1% |
| All types of fruit supply | 2% |
| Sub-contract from 100% export-oriented garments industry | 1% |
| Cement, iron/steel, ferro-alloy products (non-MS Billet) manufacturing industries | 2% |
| Oil from oil refinery company supply | 1.5% |
| Gas transmission company | 3% |
| Gas distribution company | 0.6% |
| 33kV–500kV Extra High Voltage Power Cable with Vertical Continuous Vulcanization line | 3% |
| Supply to any person other than government/corporation (i.e. general supply to private entities) | 3% |
| Recycled lead supply | 3% |
| Raw materials for industrial production | 3% |
| Raw materials for recycling industry | 1.5% |
| Manufacturing, process/conversion, construction, engineering or similar work | 5% |
| Cigarette, bidi, zarda, gul tobacco industry raw material supply | 10% |
| All other goods supply (not in items 1–18 above); all other cases under Section 89 | 5% |
Practitioner’s Note — Section 89 Base Value Slabs: For items falling under the general 5% category (serial 19), the rate is further tiered by base value: up to BDT 50 lac = 3%, BDT 50 lac to BDT 2 crore = 5%, above BDT 2 crore = 7%. Always check whether the cumulative annual contract value pushes you into a higher slab.
Section 90 — TDS from Service Payments (Rule 4)
Section 90 covers a wide range of services. This is where most procurement, consultancy, and professional payment TDS rates sit.
Important exclusion: Services provided by banks, insurance companies, financial institutions, and MFS providers are exempt from Section 90 deduction.
Commission vs. Gross Bill rule (for serials 4, 5, 13 and others): Where both commission/fee and a gross bill are presented, TDS must be calculated under both formulas — and the higher amount is the correct TDS to deduct.
Section 90 — Service TDS Rate Table
| Serial | Service Category | TDS Rate |
|---|---|---|
| 1 | Advisor or consultant (natural person) | 15% |
| 1 | Advisor or consultant (non-natural person/company) | 7.5% |
| 2 | Professional service (natural person) | 15% |
| 2 | Professional service (non-natural person/company) | 7.5% |
| 3 | Technical service fee / technical know-how / technical assistance fee | 10% |
| 4 | Catering, cleaning, collection & recovery agency, personal security, manpower supply, creative media, public relations, event management, training/workshop, courier, packing & shifting, similar services — on commission/fee | 10% |
| 4 | Same services as above — on gross bill | 2% |
| 5 | Print and electronic media agency — on commission/fee | 10% |
| 5 | Print and electronic media agency — on gross bill | 0.65% |
| 6 | Indenting commission | 7.5% |
| 7 | Meeting fee, training fee, or honorarium | 10% |
| 8 | Mobile network operator | 12% |
| 9 | Credit rating agency | 10% |
| 10 | Motor garage or workshop | 8% |
| 11 | Private container port or dock yard | 8% |
| 12 | Shipping agency commission | 8% |
| 13 | Stevedoring/berth operator/terminal operator/ship handling — on commission/fee | 10% |
| 13 | Stevedoring/berth operator/terminal operator/ship handling — on gross bill | 5% |
| 14 | Transport service, vehicle rental, carrying service, repair & maintenance; ride-sharing, co-working space, accommodation-sharing, and any sharing economy platform | 5% |
| 15 | Wheeling charge in electricity transmission | 3% |
| 16 | Internet service | 5% |
| 17 | MFS agent, distributor, agency or channel partner (bKash, Nagad, Rocket etc.) | 10% |
| 18 | Freight forwarding commission (gross bill including or excluding commission) | 1.5% |
| 19 | Any other service not listed in 1–18 above and not deductible under another section | 10% |
Section 91 — Royalties, Intangibles, and IP Payments
TDS on payments for intangible assets, royalties, and licence fees is governed by Section 91:
| Base Value | TDS Rate |
|---|---|
| Up to BDT 25 lac | 10% |
| Above BDT 25 lac | 12% |
Important: If the payee does not have a 12-digit TIN, the applicable rate increases by 50% under Section 142.
Section 92 — Advertising Income from Media
TDS at 5% applies to advertisement income from newspapers, magazines, private television, private radio channels, websites, and similar media.
Section 93 — Payments to Actors, Producers, etc.
Payments to actors, actresses, producers, and similar persons attract TDS at 10%.
Section 94 — Commission, Discount, Fee
| Sub-section | Type of Payment | TDS Rate |
|---|---|---|
| (1) | Commission, discount, fee, incentive, performance bonus paid by any company or firm to a distributor or other person | 10% |
| (2) | Amount paid by company/firm for marketing/distribution of their products | 1.5% |
| (3) | Company/firm (except oil marketing) selling to distributor/another person; tax collectible on: sale price × 5% × 5% | Variable |
| (4) | Cigarette manufacturer selling to distributor; base = difference between retail price and sale price | 3% |
Section 95 — Travel Agent Collection
TDS collected from travel agents: 0.3%
Section 96 — LC Commission
TDS on commission received from letters of credit: 5%
Section 97 — Local LC / Finance Agreement Payments
| Sub-section | Category | TDS Rate |
|---|---|---|
| (1) | Trader paying on behalf of another person to purchase goods | 3% |
| (2) | Bank/finance company paying on behalf of distributor for goods sale | 1.5% |
| (3) | Fruit, computer & accessories purchase under open local LC | 2% |
| (4) | Cotton and yarn under local LC | 1% |
| (5) | Agricultural goods (paddy, rice, wheat, potato, fish, meat, onion, garlic, lentil, flour, sugar etc.) under local LC | 0.5% |
Section 98 — Cellular Phone Operators
Payment to or from cellular mobile phone operators for revenue distribution, licence fees, or any other charges: 20%
Section 99 — Life Insurance Surplus
TDS on any payment beyond the insured premium amount from life insurance policies: 5% (no TDS applies on death claim payments)
Section 100 — Insurance Commission
TDS on insurance commission: 5%
Section 101 — General Insurance Surveyor Fees
TDS on fees paid to general insurance company surveyors: 15%
Section 102 — Savings Deposits and Fixed Deposits
| Recipient Type | TDS Rate |
|---|---|
| Fund, association, company | 20% |
| All others | 10% |
| Recipient exempt or at reduced rate (with NBR certificate) | 0% or reduced rate |
Section 104 — Interest Paid to Resident Taxpayer
TDS on interest income of a resident taxpayer: 10%
Section 105 — Savings Certificate Profit
| Category | TDS Rate |
|---|---|
| Profit from savings certificates (any fund purchase) | 10% |
| Pensioner savings certificates — total investment not exceeding BDT 5 lac | 0% |
| Foreign currency earning bonds (Wage Earner Bond, US$/Euro/Pound bonds) | 0% |
Section 106 — Interest on Securities
TDS on interest from securities: 10%
Section 107 — Bangladesh Bank Bill Discount
TDS at the highest applicable rate — see Section 107 for detailed provisions.
Section 108 — International Phone Calls
| Category | TDS Rate |
|---|---|
| IGW (International Gateway) service provider — total amount credited to bank | 1.5% |
| ICX, ANS, BTRC or others under BTRC agreement | 7.5% |
| Outgoing international calls — ICX/ANS payment | 7.5% |
| NBR certificate holder | 0% or reduced rate |
Section 109 — Rent
TDS at 10% on rent payments for residential property, hotels/guesthouses, open space, or plant/machinery (excluding government water bodies), when paid by a specified person. If the property owner has no taxable income and holds an NBR-issued certificate, the rate is 0%.
Section 110 — Convention Hall and Conference Centre
TDS on services from convention halls, conference centres, etc.: 10%
Section 111 — Compensation for Compulsory Land Acquisition
| Location | TDS Rate |
|---|---|
| Property within City Corporation, Paurashava, or Cantonment Board area | 6% |
| Property outside the above areas | 3% |
Section 112 — Export Cash Subsidy
TDS on cash export subsidy payments: 10%
Section 114 — Electricity Purchase
| Category | TDS Rate |
|---|---|
| Electricity purchased from BPDB, distribution company, or captive power producer | 4% |
| Electricity generation income exempt by certificate from NBR | 0% |
Section 115 — Real Estate Developer Payments to Land Owners
TDS on payments by real estate developers to landowners: 15%
Section 116 — Commission to Foreign Buyer’s Agent
TDS on commission or remuneration paid to foreign buyer’s agents: 7.5%
Section 117 — Dividend
| Payee Type | TDS Rate |
|---|---|
| Shareholder/unit holder is a company | Rate applicable to that company |
| Individual shareholder with TIN | 10% |
| Individual shareholder without TIN | 15% |
Section 118 — Lottery
TDS on lottery, prize bond, and similar income: 20%
Section 119 — Non-Residents (Rule 5)
Non-resident TDS rates are consistently higher than resident rates. Key categories under Rule 5:
| Category | TDS Rate |
|---|---|
| Advisor/consultant (natural person) | 20% |
| Advisor/consultant (company/entity) | 10% |
| Pre-shipment inspection | 20% |
| Professional service (natural person) | 20% |
| Professional service (company/entity) | 10% |
| Technical service fee / technical assistance | 20% |
| Architecture, interior/landscape/fashion/process design | 20% |
| Certification, rating etc. | 20% |
| Satellite, airtime, frequency rental / channel broadcast | 20% |
| Legal service | 20% |
| Event management service | 20% |
| Commission | 20% |
| Royalty, licence fee, or intangible asset payment | 20% |
| Interest | 20% |
| Advertisement broadcast | 20% |
| Advertisement production and digital marketing | 15% |
| Air/sea transport (excluding DTAA countries) | 7.5% |
| Manufacturing, construction, engineering work (contractor/sub-contractor) | 7.5% |
| Goods supply | 7.5% |
| Capital gain | 15% |
| Insurance premium | 10% |
| Plant/machinery/equipment rental | 15% |
| Dividend from company/fund/trust | 20% |
| Dividend from any other person | 30% |
| Artist, singer, or sportsperson | 30% |
| Salary or remuneration | 30% |
| Petroleum exploration or drilling | 5.25% |
| Coal, oil, or gas survey | 20% |
| General insurance surveyor fee | 5.25% |
| Oil/gas field pipeline connection services | 5.25% |
| Bandwidth payment | 10% |
| Courier service | 15% |
| Any other payment | 20% |
Section 120 — Import (Rule 8)
TDS is collected from importers at source — refer to Rule 8 of TDS Rules 2024 and its SRO 157/2025 amendment for the applicable rates.
Section 121 — Manpower Export
| Type | Rate |
|---|---|
| Service charge/fee on manpower export (percentage-based) | 10% |
| Fixed advance payment per licence application | BDT 50,000 |
Section 122 — Leasing and Forwarding Agents
TDS collected from leasing and forwarding agents: 10%
Section 123 — Export Proceeds
| Category | TDS Rate |
|---|---|
| Bank deduction on total export proceeds credited to exporter’s account | 1% |
| Exporter with NBR certificate for tax exemption | 0% or reduced rate |
Section 124 — Income Remitted from Abroad
TDS at 10% on any payment remitted from abroad to Bangladesh for services, revenue sharing, etc. — excluding amounts exempt under the Sixth Schedule, Part 1.
Section 125 — Property Transfer
Refer to Rule 6 of TDS Rules 2024 and SRO 157/2025 amendment — rates vary by property location and classification.
Section 126 — Real Estate Developer (TCS)
Refer to Rule 7 of TDS Rules 2024 for collection from developers.
Section 127 — Government Stamp, Court Fee, Cartridge Paper Commission
TDS at 10% on commission paid from government stamp, court fees, and cartridge paper sales.
Section 128 — Property Lease
TDS on registration of immovable property lease exceeding 10 years: 4%
Section 129 — Cigarette Manufacturer
TCS from cigarette manufacturers: 10%
Section 130 — Brick Manufacturer (Fixed Annual Amount)
| Brick Kiln Type | Annual TCS |
|---|---|
| Seasonal kiln — up to 1,08,000 cubic feet capacity | BDT 80,000 |
| Seasonal kiln — 1,08,000 to 1,24,000 cubic feet | BDT 1,20,000 |
| Seasonal kiln — above 1,24,000 cubic feet | BDT 1,60,000 |
| All other types of kilns | BDT 2,20,000 |
Section 131 — Trade Licence (Fixed Amounts)
| Issuing Authority | Annual TCS |
|---|---|
| Dhaka North, South or Chattogram City Corporation | BDT 3,000 |
| Other City Corporations | BDT 2,000 |
| District Sadar Paurashava | BDT 1,000 |
| Other Paurashavas | BDT 500 |
Section 132 — Ship/Vessel Business (Resident)
Rates apply per Rule 132 based on total freight value — 5% where a single country of service, 3% where the vessel operates across multiple countries.
Section 133 — Public Auction Sales
| Transaction Type | TDS Rate |
|---|---|
| Public auction of goods, property, rights | 10% |
| Tea auction sales | 1% |
Section 134 — Share Transfer (Private Limited Company)
TCS on transfer of shares of a private limited company: 15%
Section 135 — Securities Transfer
TCS on transfer of securities (sponsor/director shareholding): 5%
Section 136 — Stock Exchange Share Transfer
TCS on share transfer at stock exchange: 15%
Section 137 — Stock Exchange Members
TCS from stock exchange members: 0.03% on share/debenture/mutual fund transactions; 10% on commission for other securities transactions. Not applicable to sukuk and bond transfers.
Section 138 — Commercial Motor Vehicle Registration/Fitness
Fixed annual TCS applies by vehicle category — see full table in the PDF. Key figures:
| Vehicle Type | Annual TCS |
|---|---|
| Air-conditioned bus (52+ seats) | BDT 50,000 |
| Non-air-conditioned bus (52+ seats) | BDT 25,000 |
| Non-air-conditioned bus (up to 52 seats) | BDT 20,000 |
| Prime mover | BDT 35,000 |
| Truck/lorry/tanker — above 5 tonnes | BDT 30,000 |
| Truck/lorry/tanker — 1.5 to 5 tonnes | BDT 15,000 |
| Truck/lorry/tanker — up to 1.5 tonnes | BDT 7,500 |
| Pickup van, human hauler, taxi, auto-rickshaw | BDT 7,500 |
| Air-conditioned taxi car | BDT 15,000 |
| Non-air-conditioned taxi car | BDT 7,500 |
Section 139 — Inland Vessel Operation (Advance TCS)
Fixed TCS per voyage based on passenger capacity or gross tonnage:
| Vessel Type | Rate |
|---|---|
| Passenger vessel (inland waterway) | BDT 125 per voyage per passenger capacity |
| Cargo/container/coaster (inland waterway) | BDT 170 per voyage per gross tonne |
| Dumb barge (inland waterway) | BDT 125 per voyage per gross tonne |
The 50% Surcharge Rules — When Normal Rates Don’t Apply
Two provisions in the ITA 2023 automatically increase TDS above the standard rates. Finance teams must build these into their payment workflows:
Section 142 — Cash Payment Surcharge If payment is made in cash rather than through a banking channel, the applicable TDS rate increases by 50% above the standard rate.
Section 142 — No PSR Surcharge If the payee fails to provide proof of tax return submission at the time of payment, the TDS rate again increases by 50%.
These two conditions are independent — if both apply simultaneously, the rate increase is cumulative.
Deposit Deadline for TDS Deducted
Once TDS is deducted, it must be deposited to the government treasury within the prescribed time under Rule 9 of TDS Rules 2024. Failure to deposit on time — even if the deduction was made correctly — attracts interest and penalties and creates personal liability for the responsible officer.
Frequently Asked Questions
Q: Which SROs govern TDS rates for FY 2025–26? The base rules remain under SRO No. 161-Law/Income Tax-36/2024 (29 May 2024), amended by SRO No. 157-Law/Income Tax-12/2025 (26 May 2025) and SRO No. 269-Law/Income Tax-14/2025 (24 June 2025). All three must be read together.
Q: Are TDS returns still monthly in FY 2025–26? No. Under the Finance Ordinance 2025 amendment to Section 177(3), TDS/TCS returns are now quarterly from Assessment Year 2025–26 onwards.
Q: Does TDS apply at invoice date or payment date? TDS applies at the time of payment — not at invoice booking. This is a common source of misalignment in accounts payable systems.
Q: What happens if I deduct TDS at the wrong rate? If you under-deduct, the shortfall (plus interest) remains your liability as the withholding entity. If you over-deduct, the excess can be adjusted or refunded through the normal assessment process — but this requires documentation and may be slow.
Q: Do banks and MFS providers like bKash attract TDS on their services? No. Under Rule 4 of TDS Rules 2024, services provided by banks, insurance companies, financial institutions, and MFS providers are exempt from TDS deduction under Section 90.
You can download the full TDS rates reference list with all section numbers here. (Link to your PDF)
This article is for general guidance only and does not constitute professional tax advice. Rates are subject to change — always verify against the latest NBR SROs and consult a qualified tax practitioner for advice specific to your situation.
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