The government has proposed reducing corporate income tax by 2.5 percentage points to promote cashless transactions. The proposed corporate tax rate for non-listed companies would be 25%, down from the existing 27.5%, with the condition that transactions exceeding Taka 5 lakh and annual expenses/investments over Taka 36 lakh must be conducted through bank transfers.
Listed companies offloading over 10% of shares and adhering to the bank transfer condition could benefit from a reduced income tax rate of 20%, while those with less than 10% share offloading would pay 25% tax unless meeting the bank transfer criteria, which lowers the rate to 22.5%. Additionally, the tax rate for one-person companies may decrease from 22.5% to 20% under the same conditions. This initiative aims to formalize the economy and incentivize the establishment of one-person companies.
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