Freelancer tax rules in Bangladesh at a glance (2026-27)
| IT / ITES freelance income | Tax-exempt from 1 July 2024 to 30 June 2027 if received through banking channels |
|---|---|
| Other freelancing and content creation | The 2026-27 budget proposed extending the exemption to all freelancing and to independent content creators. Check the NBR's published Finance Act 2026 for the final wording |
| Tax-free income limit | ৳4,00,000 for 2026-27 and 2027-28 (higher for some groups, such as women and people over 65) |
| Lowest tax rate | 10% on income above the tax-free limit (the old 5% band was removed) |
| Filing a return | Required every year if you have a TIN, even when all your income is exempt |
| Cash incentive | 2.5% for individual freelancers exporting software or IT-enabled services in 2026-27 (was 4%) |
| TIN for bank accounts | The proposal to require a TIN for most bank accounts was dropped when the Finance Act passed |
How to stay on the right side of the rules
- Receive your earnings through banking channels and keep your statements and remittance records. The exemption depends on it.
- Get an e-TIN if you need one. It's free and done online at secure.incometax.gov.bd.
- File your return every year once you have a TIN, and list exempt freelance income as exempt. You can file online at etaxnbr.gov.bd. The deadline is usually 30 November, but check the NBR for this year's date.
- Claim the cash incentive through the bank where your foreign earnings arrive, which will tell you which documents it needs.
Frequently asked questions
Is freelance income tax-free in Bangladesh?
Income from IT and IT-enabled services earned between 1 July 2024 and 30 June 2027 is exempt from income tax, as long as the money comes in through banking channels. The 2026-27 budget also proposed extending this to all kinds of freelancing and to independent content creators.
What is the tax-free income limit in Bangladesh for 2026-27?
For individual taxpayers, the tax-free limit is ৳4,00,000 for 2026-27 and 2027-28, as passed by parliament on 29 June 2026. Higher limits apply to some groups, such as women and people over 65. Above the limit, the lowest tax rate is now 10%.
Do freelancers have to file a tax return if their income is exempt?
If you have a TIN, yes. You file a return every year even if all your income is exempt, and show the freelance income as exempt income. If your taxable income is above the tax-free limit, you need a TIN and must file.
What is the cash incentive for freelancers in Bangladesh?
For 2026-27, Bangladesh Bank set the cash incentive for individual freelancers exporting software and IT-enabled services at 2.5%, down from 4% in earlier years. It's claimed through the bank where the foreign earnings arrive.