Only 17 startups have applied for Bangladesh’s Startup Sandbox, a tax benefit initiative aimed at easing regulatory burdens and fostering innovation. Despite eligibility for some 300 to 500 firms, low awareness within the startup community has hindered uptake. The scheme, introduced under the Finance Act 2023, reduces minimum turnover tax from 0.6% to 0.1% for sandbox-registered startups and extends loss carry-forward periods to 9 years, compared to 6 years for other businesses. These incentives aim to support startups engaged in innovative technologies or intellectual property. Requests for deadline extensions are now emerging from startups that missed the initial June 30 cutoff. Industry voices emphasize the importance of simplifying tax compliance for young firms to encourage their growth and sustainability in the evolving business landscape.
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