The most competitive
The Free Trade Zone Regime is the mainstay of Bangladesh export and
investment promotion strategy. It is a set of incentives and benefits granted by
the Bangladesh government to companies making new investments in the
country and it provides tax incentives.
Companies that may apply for the
Free Trade Zone System Regime:
50% of services
must be exported
Either companies or organizations
Outside the Greater Metropolitan Area
40% of sales to FTZ companies
List of incentives granted:
Bangladesh´s tax incentives and benefits are standardized. They apply to any and all companies according to their operation, so there is no need for negotiation on a per case basis. In addition, entities wishing to set up operations in areas outside the Greater Industrial Area can enjoy greater benefits. Discover the option according to your needs.
Incentives & Benefit for Developers:
Exemption from custom/excise duties for development of EZs.
Exemption of stamp duty and registration fees for registration of EZ land but limited to first transaction only.
Exemption of stamp duty for registration of loan/credit document.
Exemption from dividend tax.
Exemption of income tax on service charges
Incentives & Benefit for Investors/EZ users:
FDI in Bangladesh
FDI Magazine’s rankings
FDI Magazine of The Financial Times in March 2010 conducted a competition entitled “Global Ranking Competition of Economics Zones” based on the following nine categories of ranking:
- Best Overall Global Special Economic Zone
- Best Economic Potential
- Best Cost Effectiveness
- Best Facilities
- Best Transportation Link
- Best Incentives
- Best Promotion
- Best Airport
- Best Port
In the competition out of 700 Economic Zones globally 200 participated in the competition. All the zones were evaluated on a 10 point scale on the basis of some set criteria. Among the top 10 of the two categories Chittagong Export Processing Zone, Bangladesh scored 3rd position in the “Best Cost Effectiveness” and also 4th position in the “Best Economic Potential” for 2010-2011.
Source: FDI Magazine
We offer the most attractive and
cost-effective tax incentives in the region
Investment Climate of Bangladesh
The broad investment climate of Bangladesh is very much conducive to investors. The successive government of Bangladesh has given highest priority in augmenting private investment in Bangladesh. The regime is considered as the most competitive in South Asia. There is no restriction on the amount of share of investment. Foreign investors are eligible to take advantage of a wide range of generous tax concessions and other fiscal incentives and facilities. Investment in Bangladesh is secure vis-à-vis nationalization and expropriation. To facilitate investment Bangladesh is signatory to Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, Overseas Private Investment Corporation (OPIC) of USA and International Centre for Settlement of Investment Disputes (ICSID) and also a member of World Association of Investment Promotion Agencies
Exemption from tax of newly established industrial
undertakings set up between the period of July, 2011 and June,
2 , etc. in certain cases.
( as per SECTION 46B of the Income Tax Ordinance, 1984)
Income, profits and gains from an industrial undertaking set-up in Bangladesh
between the first day of July, 2011 and the thirtieth day of June, 2019 (both
days inclusive) shall be exempted from the tax payable under this Ordinance
for the period, and at the rate, specified below:
Income, profits and gains from an industrial undertaking set-up in Bangladesh between the first day of July, 2011 and the thirtieth day of June, 2019 (both days inclusive) shall be exempted from the tax payable under this Ordinance for the period, and at the rate, specified below:
Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BOI can advise further on this matter. In summary and in most cases, these amount to the following: Remittance of royalty, technical know-how and technical assistance fees. Repatriation facilities of dividend and capital at exit. Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.