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BANGLADESH: Incentives Tax Package Announced for PPP Investors

A 10-year tax holiday is on offer for investors in a number of upcoming public-private partnership (PPP) infrastructure initiatives. All companies participating in such projects will also be eligible for exemption from capital gains tax, as well as being free from tax liabilities with regard to royalties and fees for technical assistance.

As an additional incentive, all foreign experts employed on PPP projects will be eligible for a 50% cut in their income tax for the first three years of their tenure. Such an entitlement, however, has to be actioned within five years of the relevant facility commencing operations.

Among the approved PPP projects are national highways / expressways; flyovers; bridges; tunnels; airports; river and sea ports; subways; monorails; railways; and bus terminals. All incentives become effective as soon as the relevant facilities become operational.

Content provided by Picture: HKTDC Research
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