When a business in Bangladesh pays a person or company in another country (a non-resident), it often has to deduct tax from that payment. This is called Tax Deducted at Source (TDS). The tax is collected in advance and then paid to the government. This rule helps the government collect tax on money earned in Bangladesh by people who don’t live here. The rates for TDS can change each year, and for the financial year 2025-2026, they are set out in the latest tax rules.
TDS on Payments to Non-Residents 25-26
The TDS rates depend on the type of payment being made. Here’s the chart of the services and their corresponding rates:
| SL No | Description of Services or Payments | Rate |
|---|---|---|
| 1 | Advisory or consultancy service: For Individual For other than individual | 20% 10% |
| 2 | Pre-shipment inspection service | 20% |
| 3 | Professional service: For Individual For other than individual | 20% 10% |
| 4 | Technical services, technical know-how or technical assistance | 20% |
| 5 | Architecture, interior design or landscape design, fashion design or process design | 20% |
| 6 | Certification, rating etc. | 20% |
| 7 | Charge or rent for satellite, airtime or frequency, rent for channel broadcast | 20% |
| 8 | Legal service | 20% |
| 9 | Management service including event management | 20% |
| 10 | Commission | 20% |
| 11 | Royalty, license fee or payments related to intangibles | 20% |
| 12 | Interest | 20% |
| 13 | Advertisement broadcasting | 20% |
| 14 | Advertisement making or Digital marketing | 15% |
| 15 | Air transport or water transport except areas mentioned per section 259 and 260 | 7.5% |
| 16 | Manufacturing, process or conversion, construction, engineering or any similar works by contractor, sub- contractor and sub-sub-contractor | 7.5% |
| 17 | Supplier | 7.5% |
| 18 | Capital gain | 15% |
| 19 | Insurance premium | 10% |
| 20 | Rental of machinery, equipment etc. | 15% |
| 21 | Dividend- (a) company, fund and trust (b) any other person not being a company, fund and trust | 20% 30% |
| 22 | Artist, singer or player | 30% |
| 23 | Salary or remuneration | 30% |
| 24 | Exploration or drilling in petroleum operations | 5.25% |
| 25 | Survey for coal, oil or gas exploration | 20% |
| 26 | Fees, etc. of surveyors of general insurance company | 5.25% |
| 27 | Any service for making connectivity between oil or gas field and its export, | 5.25% |
| 28 | Bandwith payment | 10% |
| 29 | Courier services | 15% |
| 30 | Any other payments | 20% |