DSE Dividend Tax Calculator

Has the Tax-Free Dividend Limit Changed?

Yes, there has been a significant shift in the taxation of dividend income in Bangladesh. Historically, individual investors enjoyed a tax-free dividend limit of up to Tk 50,000 per year. However, with the introduction of the Income Tax Act 2023, this exemption has been completely removed.

Current Tax Rates (2024-25)

Now, all cash dividends received from listed companies on the Dhaka Stock Exchange are subject to Tax Deducted at Source (TDS) at the following rates:

• 10% TDS: For resident individual taxpayers who provide a valid 12-digit e-TIN.
• 15% TDS: For resident individuals who do not have an e-TIN or fail to provide it to the company/broker.
• 20% TDS: For companies or corporate investors.

Dividend Tax as "Final Tax"

Under Section 163 of the new tax law, the tax deducted from your dividend is generally treated as the Final Tax Liability. This means:

• You do not need to pay any additional tax on this dividend income when filing your annual return, regardless of your total income bracket.
• Conversely, you cannot claim a refund for this tax even if your total income is below the taxable threshold (Tk 3.5 Lakh).

Tax on Bonus Shares (Stock Dividend)

In Bangladesh, Bonus Shares issued by listed companies are currently tax-exempt for the shareholder. The tax is instead paid by the company (usually a 10% tax on the value of bonus shares if they exceed the cash dividend). As an individual investor, you don't have to worry about paying tax when you receive bonus shares.