According to the Financial Express of Bangladesh on October 28, the Bangladesh Taxation Bureau issued a policy to encourage the development of some manufacturing enterprises. Enterprises engaged in the production and manufacturing of refrigerators, refrigeration equipment accessories, motorcycles, air conditioners and compressors are allowed to enjoy a preferential enterprise income tax rate of 10%. The deadline for the preferential policy is June 30, 2032. At present, the enterprise income tax rate borne by ordinary enterprises is 22% to 30%.
The preferential tax policy has conditional restrictions on manufacturing enterprises. For example, they need to be registered in accordance with the enterprise act of Bangladesh in 1994, have production molds and production capacity, and have professional production technology and production supporting facilities. Enterprises enjoying the preferential policy will no longer enjoy the preferential policy when they are transformed into other types of enterprises. Such manufacturing enterprises also need to reinvest at least 10% of the tax-free income to expand production in the next three years.