14 Aug 2017
BANGLADESH: Corporate Income Tax Cut to 12% in Readymade Garment Sector
The corporate income tax (CIT) rate for producers and exporters of readymade garments (RMG) has been cut from 20% to 12%. The tax cut, announced on 5 August, will retrospectively apply from 1 July 2017, the start of the country’s financial year. In an additional incentive, all clothing produced in factories that comply with international green building standards will be required to pay CIT at just 10%.
The tax cuts form part of the the government’s move to improve overall environmental standards in the country’s export-oriented RMG sector, while also coming in the wake of the recent opening up of the sector to foreign direct investment.
For further details, see BANGLADESH: FDI in Readymade Garment Sector Now Permissible Outside EPZs.