Remittance Tax Calculator
Check whether an incoming remittance is tax-free and add the government cash incentive to see the net amount received.
Recent
Formula
How the calculation works
The calculator first checks the channel you chose, because remittances sent through banks or mobile financial services are officially recognized.
When the channel is official the taxable amount is set to zero, since Bangladesh does not tax remittance income received through legal channels.
The government cash incentive is then added on top and the net received figure shows what the family actually gets in taka.
Common mistakes
- Sending money through hundi or an informal courier, which is outside the official channel and receives neither the tax exemption nor the incentive.
- Forgetting that the incentive rate is revised from time to time, so a fixed figure remembered from an old year can be out of date.
When to use it
- Migrant workers use it to confirm that money sent home through a bank or mobile wallet is exempt from income tax.
- It also shows the cash incentive added by the government so the family knows the exact amount that will arrive.
Worked example
With a remittance of 50000 taka through an official channel and a 2.5 percent incentive, the taxable amount is 0, the incentive is 1250 taka and the net received is 51250 taka.
Common questions
Is remittance income really tax-free?
Yes, money received through a bank or a mobile financial service is treated as tax-free, and it can also be declared under the remittance income policy for further benefits.
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