Crypto Taxation in Bangladesh: A Complete Guide

Over the years, the pace of cryptocurrency adoption in Bangladesh has increased thanks to growing global trends as well as increasing digital innovation in the country. Although digital assets are forbidden under a variety of the country’s laws. Though the ban stands, it is very important to understand the tax implications of crypto transactions for individuals and businesses that operate in the crypto space. Taxation of many transactions, including those related to digital assets, is under the National Board of Revenue (NBR).

Tax Authorities & Regulations

The National Board of Revenue (NBR) is thus the prime duty holder to enforce tax policies in Bangladesh. Currently, there is no law established for crypto taxation as of 2025. But the cryptocurrency transactions are subject to the general tax laws, in particular, to the Income Tax Ordinance of 1984. Cryptocurrencies are treated as property for tax purposes by the government, and therefore, gains on their sale or exchange may be taxable as capital gains. For now, crypto-related regulations are still vague, but the government is looking into updates to them. These, then, may provide a clearer guideline in the future.

Types of Crypto Taxes in Bangladesh

Exchange of cryptocurrency in Bangladesh may become subject to the following taxes:

• Capital Assets: Sale or exchange of cryptocurrency may attract tax as Capital Gains Tax (CGT).
• Income Tax: Any income from crypto-related businesses like mining, staking or airdrops will be taxed.
• Value Added Tax (VAT): There is currently no specific regulation on whether or not crypto transactions should be taxed under VAT; it could, however, still be applicable.
• Other taxes: There are no special wealth and/or inheritance taxes for cryptocurrency in Bangladesh.

Tax Rates & Brackets

• For income tax purposes, all gains from crypto sales are subject to Capital Gains Tax, which carries a 15% tax rate for individuals.
• Cryptocurrency Income: Mining or staking income is payable to income tax as per income tax slabs (0 to 25% as income tax or withholding tax).
• The standard rate of VAT is 15%, while its application on crypto transactions is still unclear.
• Cryptocurrency: No exemptions are set for cryptocurrencies.

Crypto Transactions & Tax Treatment

• When you buy or sell crypto, the resulting profits fall under capital gains that you need to pay taxes on using the difference between the sale and initial purchase costs.
• Earnings from cryptocurrency mining or staking activities must be paid regular income taxes based on their tax slab rate.
• The tax law requires you to pay income tax on any cryptocurrency you receive as payment for work performed or regular paychecks.
• Crypto-to-crypto trades constitute taxable events, and gains are calculated with respect to cryptocurrency’s fair market value.
• Income from decentralized finance activities includes DeFi activities, Lending and yield farming. There is no specific tax rule on them.
• Gains from the sales of NFTs are treated as capital gains, the same as with cryptocurrencies.

Crypto Tax Reporting & Compliance

Cryptocurrency transactions of taxpayers are subject to general tax reporting requirements. Unlike with other activities, crypto transactions are included in the annual income tax return, using standard forms of reporting other income. Keeping records is also essential since taxpayers are supposed to keep transaction logs with details like dates, amounts, and the cost of acquisition or disposal. The deadline for taxes is commonly September 30, and failing to conform to tax laws can come with penalties or legal consequences.

Tax Deductions & Exemptions

The amount you will be able to deduct from cryptocurrency transactions is minimal. In the case of cryptocurrencies, if there are capital gains, deductions for the costs of acquisition of cryptocurrencies are allowed, and there is no allowance for the costs of holding cryptocurrencies. Expense fees, including other transaction fees and transaction fees are not deductible. 

Furthermore, cryptocurrency capital losses from trading can only be utilised to offset cryptocurrency capital gains or losses, rather than income from any other source. At present, Bangladesh does not have any exemptions on cryptocurrency taxes.

Enforcement & Penalties for Non-Compliance

Despite crypto being illegal in Bangladesh, the National Board of Revenue and other enforcement agencies regularly track online cryptocurrency movements. The government enforces crypto tracking through KYC data sharing from banking sector players and crypto platforms and utilizes blockchain analysis for large transactions that need investigation. And non-compliance may lead to severe penalties such as:

• Heavy fines for tax evasion or underreporting income linked to crypto.
• Legal action may be taken, including imprisonment, if the violations are severe or if the individual is involved in illegal activity.
• The government can also seize assets linked to tax evasion, namely cryptocurrencies.

In addition to the above penalties, the individuals could suffer further as per the Foreign Exchange Regulation Act, Anti-Terrorism Act and Money Laundering Prevention Act.

Future of Crypto Taxation in Bangladesh

Cryptocurrency taxation is yet to be established in Bangladesh, but one can almost be certain that the taxation will be on similar lines to that of the rest of the world. With many digital assets becoming significant in nature, the government may even provide provisions for tax on crypto in specific, which is quite a favourable offering over the usual confusion that one may face. Yet, the government is approaching cautiously, and an idea about crypto taxation is being considered, and there are chances that the country’s policy may match international standards. Tax incentives for crypto investors via regulatory changes are expected to make the tax environment more structured and predictable.

Conclusion

The tax rules for digital assets in Bangladesh need to be understood by everyone who trades or invests in cryptocurrencies. Though cryptocurrencies remain prohibited in their jurisdiction, the authorities tax them using standard rules for capital gains and income. By following reporting rules and keeping proper records on file, you can prevent receiving tax penalties. The ever-evolving tax regulations make it necessary to work with professional tax experts who can guide you through crypto tax requirements.

Frequently Asked Questions (FAQs)

1. Is cryptocurrency legal in Bangladesh?

The Bangladesh government bans cryptocurrency under several laws, especially the Foreign Exchange Regulation Act of 1947.

2. Does Bangladesh apply separate taxes on cryptocurrency activities?

Although no activities target cryptocurrency taxes directly, taxes such as income tax and capital gains affect cryptocurrency profits.

3. Under Bangladesh law, what percentage of capital gains does a person pay on their cryptocurrency deals?

Private individuals who sell cryptocurrencies need to pay a capital gains tax of 15%.

4. How should I report my cryptocurrency purchases and sales in my tax documents?

All profits made from crypto purchases should appear on your annual income tax return.

5. What actions will authorities take when someone fails to follow tax rules about cryptocurrency?

Breaking tax rules and money laundering laws triggers multiple types of punishment, including monetary fines, jail time, and confiscation of assets.