Every business in Bangladesh must understand basic tax rules. Many small entrepreneurs face problems because they do not know when and how to pay tax. This guide explains tax matters in a simple and clear way.

 

Step 1: Types of Taxes Small Businesses Should Know

Small business owners usually deal with the following taxes:

Income Tax

  • Tax on business profit
  • Paid yearly
  • Mandatory if income exceeds exemption limit

VAT (Value Added Tax)

  • Tax on sale of goods and services
  • Collected from customers
  • Paid monthly or as required

Trade License Fees

  • Paid to City Corporation, Municipality, or Union Parishad

Official source (NBR):
https://nbr.gov.bd/

 

Step 2: What Is TIN and Why It Is Important

TIN (Taxpayer Identification Number) is required for:

  • Filing income tax returns
  • Opening business bank accounts
  • Getting loans
  • VAT registration

Every eligible business owner must have a TIN.

Official TIN registration portal (NBR):
https://secure.incometax.gov.bd/TINHome

 

Step 3: Income Tax for Small Business Owners

Income tax is calculated on business profit, not total sales.

Simple example:

  • Total sales: BDT 5,00,000
  • Total expenses: BDT 3,50,000
  • Profit: BDT 1,50,000
  • Income tax applies to BDT 1,50,000

Income tax return must be filed once a year.

Income Tax information (NBR):
https://nbr.gov.bd/index.php/tax-detail/income-tax

 

Step 4: VAT and BIN Registration

VAT applies if:

  • Your annual turnover crosses the VAT threshold
  • You sell VAT-applicable goods or services
  • You import goods

To pay VAT, you must register and get a BIN.

Official VAT & BIN portal:
https://vat.gov.bd/

 

Step 5: Keeping Proper Business Records

You should keep:

  • Sales invoices
  • Purchase bills
  • Expense records
  • Bank statements
  • Tax payment receipts

Good records make tax filing easy and safe.

 

Step 6: Filing Tax Returns

Tax returns must be filed:

  • Income Tax: once every year
  • VAT: monthly or quarterly (if VAT registered)

Returns can be filed online through official systems.

Income tax e-filing portal:
https://secure.nbr.gov.bd/

 

Step 7: Paying Tax

Taxes can be paid through:

  • Authorized banks
  • Online payment systems (if available)
  • Bank challan

Always keep the payment receipt for future use.

 

Common Tax Mistakes to Avoid

  • Not registering for TIN
  • Not filing tax returns on time
  • Mixing personal and business money
  • Ignoring VAT rules
  • Not keeping receipts

 

Final Advice for Entrepreneurs

Understand your tax responsibility early.
Register for TIN and VAT when required.
File tax returns on time.
Pay tax honestly to avoid penalties.
Seek help from NBR or SME Foundation if needed.