FAQ , Investment Incentives, Privileges and Facilities

Does all type of newly established investment projects eligible for corporate income tax exemption?

Oct 07, 2021

A. No. The newly established investment projects who manufacture following products are eligible for corporate income tax exemption under Section 46BB of the Income Tax Ordinance, 1984:

Active pharmaceutical ingredients (API) and radio-pharmaceuticals, 2) Agricultural machinery, 3) Aircraft maintenance services including parts manufacturing, 4) Artificial intelligence (AI)-based system design and/or manufacturing, 5) Artificial or manmade fiber, 6) Automatic bricks, 7) Automation and robotics design and/or manufacturing including parts/ components thereof, 8) Automobile, 9) Automobile parts/ components, 10) Barrier contraceptive and rubber latex, 11) Basic components of electronics (resister, capacitor, transistor, integral circuit, multilayer PCB, etc.), 12) Bi-cycle including parts thereof, 13) Bio-fertilizer, 14) Biotechnology-based agro-products, 15) Boiler including parts and equipment thereof, 16) Compressor including parts thereof, 17) Computer hardware, 18) Electric transformer, 19) Furniture, 20) home appliances (blender, rice cooker, microwave/ electric oven, washing machine, induction cooker, water filter, etc.), 21) Insecticides and pesticides, 22) Leather/ leather goods, 23) LED TV, 24) Locally produced fruits and vegetables processing, 25) Mobile phone, 26) Nanotechnology- based products, 27) Petro-chemicals, 28) Pharmaceuticals, 29) Plastic recycling, 30) Textile machinery, 31) Tissue grafting, 32) Toys, 33) Tire. B. Conditions are applicable to be eligible for corporate income tax exemption. Which are:

• Profits and gains of the eligible industrial undertakings shall qualify for the tax exemption.
• Paid-up capital is not less than Tk. two million and 30% of the income exempted if invested in the same undertakings or in any new industrial undertakings during the period of exemp- Another 10% of the income exempted is invested in each year before the expiry of three months form the end of the income year in the purchase of shares of a company listed with any stock exchanges in Bangladesh.
• The undertaking has to apply for the tax exemption within six months from the end of the month of commencement of commercial production. tion or within one year from the end of the exemption period.