More than 3 million individual taxpayers have so far submitted their income tax returns online for the current 2025–26 tax year, reflecting a sharp rise in the use of Bangladesh’s e-return system, according to the National Board of Revenue (NBR).

The NBR said around 4.5 million taxpayers have already registered on the e-return platform, while over 3 million have completed submission of their returns through the system to date.

The online filing initiative was formally inaugurated on 4 August 2025 by Finance Adviser Dr Salehuddin Ahmed via the NBR’s official portal, www.etaxnbr.gov.bd.

Under a special order issued this year, online submission of income tax returns has been made mandatory for all categories of individual taxpayers, with specific exemptions.

Those exempted include senior citizens aged 65 years and above, physically challenged and special needs taxpayers, Bangladeshis residing abroad, legal representatives filing returns on behalf of deceased taxpayers, and foreign nationals working in Bangladesh.

However, the NBR noted that many taxpayers from the exempted categories are also voluntarily opting for online filing.

Monthly data show a steady and significant increase in e-return submissions.

In August 2025, 251,784 taxpayers filed returns online, followed by 301,302 in September and 454,076 in October.

The number rose sharply in November to 1,040,472, while nearly 1 million taxpayers have already submitted e-returns in December so far.

By comparison, only 1,002,298 taxpayers had filed e-returns during the same period last year.

To facilitate taxpayers, the government has extended the deadline for filing income tax returns until 31 January 2026.

The NBR expressed optimism that more than 4 million taxpayers will submit their returns within the extended timeframe this year.

Although online filing is not compulsory for Bangladeshis living abroad, the NBR has introduced a simplified mechanism to bring them under the digital system.

Expatriate taxpayers can apply for registration by emailing basic information such as passport number, national identity card number and email address to [email protected].

Upon verification, an OTP and registration link are sent to the applicant’s email address, enabling overseas Bangladeshis to register and submit their income tax returns online.

In addition, authorised representatives are now able to file e-returns on behalf of taxpayers under the current system.

The NBR highlighted that the e-return platform allows taxpayers to file returns without uploading any supporting documents.

Taxpayers can directly enter accurate details of their income, expenditure, assets and liabilities into the system and pay taxes online using debit or credit cards, internet banking or mobile financial services such as bKash and Nagad.

Upon submission, taxpayers can instantly generate and print an acknowledgement slip and an automated income tax certificate.

If any error is detected in a submitted return, taxpayers can file a revised return directly through the e-return system within 180 days of the original submission. So far, nearly 30,000 taxpayers have already submitted revised returns for the 2025–26 tax year.

To make the process more user-friendly, the NBR has arranged training programmes on the e-return system for taxpayers as well as authorised representatives, including income tax lawyers, chartered accountants, cost and management accountants, and chartered secretaries.

A dedicated call centre has also been set up to provide real-time assistance, with taxpayers able to seek immediate support by calling 09643-71-71-71.

In addition, taxpayers can report e-return-related issues in writing through the eTax Service option on the NBR website, while e-return help desks established at all tax zones across the country are providing services and guidance during office hours.

The NBR has urged all individual taxpayers to use the e-return system and submit their income tax returns for the 2025–26 tax year by the extended deadline of 31 January 2026.

MSH

Companies and organisations will be required to file tax returns on the income generated by employee welfare funds from the current fiscal year and pay a 27.5 percent tax on the earnings. 

The Income Tax Act 2023 incorporates the provision, lifting the tax exemption and amnesty on the compulsion to file returns for funds such as provident funds, gratuity funds and workers' profit participation funds maintained by the private sector.

The law, however, has exempted government-managed provident funds from taxation, raising questions.

TIM Nurul Kabir, executive director of the Foreign Investors' Chamber of Commerce & Industry, said there were many other avenues to collect tax.

"Employees benefit from provident funds after their retirement. So, the authority should not slap taxes on retirement benefit."

He said while levying the tax, the government has not treated provident funds of the private and public sectors equally.

"It is discriminatory," he said, adding that they would appeal to the tax authority for the withdrawal of the tax on income from provident funds.

Debabrata Roy Chowdhury, director for legal, regulatory and corporate affairs at Nestlé Bangladesh PLC, said the introduction of income tax on trust funds would lower the overall income from such schemes.

"This will have an adverse long-term impact on retired employees of private organisations."

Chowdhury urged the authority to address the issue in line with the spirit of the government's initiatives aimed at ensuring social security for private sector employees.

"The recent introduction of the universal pension scheme for private sector employees is a good example of that."

A senior official of the NBR, on condition of anonymity, said the income of government-managed provident funds was exempted in line with the Provident Fund Act 1925.

He said provident funds under the private sector had been historically exempted and there was no requirement to submit tax returns. As a result, it was unclear whether the funds were properly utilised.

"From now onwards, we will see proper disclosure."

The tax official said the contribution of payroll tax is about 3 percent of the total income tax although it should increase as the economy is growing.

Md Shahadat Hossain, a former president of the Institute of Chartered Accountants of Bangladesh, said income from investment in savings certificates, where people invest as a source of future earnings, is already taxed.

"From that perspective, the imposition of tax on provident and other employee welfare funds seems okay."

However, Towfiqul Islam Khan, senior research fellow at the Centre for Policy Dialogue, said social protection for private sector employees was low.

"Provident and other workers' welfare-related funds provide little social protection. The imposition of tax will increase inequality. But there can't be any discrimination in taxation between private and government provident funds."

Khan, citing the latest income tax law that replaced the Income Tax Ordinance 1984, said the NBR tried to find new avenues to increase tax collection and improve the nation's revenue-gross domestic product ratio, which is one of the lowest in the world.

"We can see the desperation of the tax authority to boost collection. This ultimately reveals the inability of the NBR to catch the tax evaders and illicit money makers."