Freelancers and content creators, who earn income through social media platforms such as Facebook and YouTube and bring those earnings into Bangladesh, will no longer be subject to withholding tax at the source from the next fiscal year.
The National Board of Revenue (NBR) is preparing amendments to the Income Tax Act to implement the measure soon.
Finance Minister Amir Khasru Mahmud Chowdhury is expected to announce the decision in his budget speech.
However, content creators will still be required to pay income tax at the prescribed rates on any income they earn from other domestic sources, just like regular taxpayers.
Under the current tax regime, income earned by individuals residing in Bangladesh from providing services or products to foreign clients is not classified as remittance, even if the money is brought into the country. As a result, banks have been deducting a 7.5 per cent withholding tax from the earnings of freelancers and content creators in accordance with existing tax laws.
