Freelancing is becoming a popular way to earn money in Bangladesh. And a common question is: Do freelancers have to pay taxes on their income? The answer is yes.
How many Freelancers are there in Bangladesh?
According to the World Trade Organization (WTO) World Trade Report 2023, 14% of the world's freelancers are from Bangladesh. These people work from home, using only their skills, a laptop or a mobile and a good internet connection. They complete jobs for clients in the USA, UK, Europe, and other countries—without needing to go abroad.
How much a Freelancer have to pay tax in Bangladesh?
Now, understanding tax rules is important for freelancers to avoid legal problems and contribute to national development. In Bangladesh, income tax applies to all individuals who earn above a certain amount. This includes everyone including freelancers.
The tax rates for the financial year 2024-2025 are:
- Income up to 3,50,000 BDT: No tax
- Next 1,00,000 BDT: 5% tax
- Next 4,00,000 BDT: 10% tax
- Next 5,00,000 BDT: 15% tax
- Next 5,00,000 BDT: 20% tax
- Income above this: 25% taxn (Source= )
Note that for women and senior citizens (65 years or older), the tax-free income is up to 4,00,000 BDT.
Do Bangladeshi Freelancers have to pay 10% Tax?
On September 27, a notice from Bangladesh Bank spread on social media, causing people to believe that freelancers now have to pay a 10% tax on their income. This worried many freelancers. However, the ex- ICT State Minister, Zunaid Ahmed Palak, cleared up the confusion.
He explained that the notice from Bangladesh Bank was just a regular update and did not mention freelancers or say they had to pay a 10% tax. He also stated that, under the Income Tax Law, freelancers in Bangladesh do not have to pay taxes.
Freelancers are still not part of the tax system. Additionally, freelancers who earn money from foreign clients receive a 4% cash incentive from the government. In comparison, people who send remittances from abroad only get a 2.5% incentive.
How much Bangladeshi Freelancers make in one year?
Bangladesh Bank says computer-related service exports more than doubled in just 4 years:
In 2017-18: $182 million
In 2020-21: $303 million
In 2022-23: $550 million
But the problem remains. Payoneer and other International methods are not available to Bangladesh. So Freelancers have to use other methods receiving payments from international platforms. This is wher EasyTaskBd comes to help.
We provide fluent transactions in local famous platforms like Bkash, Nagad & Rocket. Job posters can deposit balance from their respective account to this platform easily within 5 minutes and post jobs. Vice versa Freelancers can withdraw their earnings within the same time. Our staffs are awaiting your deposit/withdraw requests to complete your transaction.
Post Job Now.
EasyTaskBd promises 2 things. The first freelancing organisation to integrate easy payment methods like Bkash to use as Balance. The second one is Reliability. You have all the authority of your task. So what are you waiting for?
