The National Board of Revenue (NBR) issued a new notification on Monday (4 November), setting the capital gains tax rate at 15% for capital gains exceeding Tk50 lakh from transactions of shares listed on the stock exchange.
Under the current law, any listed shares sold within five years of acquisition between 1 July 2024 and 30 June 2025 attract tax at the general rate, said a press release.
Previously, the highest tax rate on capital gains exceeding Tk50 lakh was 30%, and an additional surcharge of up to 35% was imposed on wealthy taxpayers, resulting in an effective tax burden of 40.50% for gains from the stock market.
According to the NBR notification No. 383/Act/Income Tax-52/2024, dated 4 November 2024, a flat 15% tax rate will now apply on capital gains from the sale of all shares listed on the stock exchange, regardless of the holding period – whether within or beyond five years of acquisition.
Consequently, during the 1 July 2024 to 30 June 2025 fiscal period, taxpayers will be subject to a 15% tax rate on capital gains exceeding Tk50 lakh, irrespective of the gain amount.
Additionally, if the taxpayer’s net assets exceed Tk4 crore, Tk10 crore, Tk20 crore, or Tk50 crore, the applicable surcharges on the tax payable will be 10%, 20%, 30%, and 35% respectively.
Under the new rules, a taxpayer with net assets exceeding Tk50 crore will now pay 15% tax on any capital gains exceeding Tk50 lakh, along with an additional 35% surcharge on the payable tax of 15%, effectively raising the total tax and surcharge rate to 20.25% (15% + 5.25%).
For taxpayers with net assets below Tk50 crore, the surcharge will be applied at reduced rates (10%, 20%, or 30%) depending on asset size, potentially lowering the effective tax and surcharge rate below 20.25%.
NBR expects that this reduction of the maximum tax rate from 40.50% to 20.25% on capital gains exceeding Tk50 lakh for individual taxpayers and other entities trading listed company shares in the 2024–2025 tax year will increase both domestic and foreign investor interest in Bangladesh's capital market.
