Private power generation companies, excluding coal-fired ones, have been granted tax-waiver benefits under Section 44 of the Income Tax Ordinance-1984. The National Board of Revenue (NBR) issued a statutory regulatory order (SRO) on June 19, outlining the conditions for availing this facility. Companies that commence commercial operation before June 30, 2024, will enjoy tax waiver on their payable income until June 30, 2036.
Foreign nationals employed by these power companies, excluding coal-fired ones, will receive waiver on their income from their arrival in Bangladesh. Additionally, tax waiver will be applicable to payable interest on foreign loans, royalties, technical know-how fees, and capital gains from share transfers. Different rates of tax waiver will apply to power generation companies starting operations before June 30, 2025, with full waivers for the initial five years. However, companies must maintain proper accounts and comply with the provisions of the ordinance and the Private Sector Power Generation Policy of Bangladesh.
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