Economic zones are exempt from the BOI and Local Government Tax.
April 28, 2016.
All economic zones in Bangladesh, as well as any organizations incorporated within them, are immune from Board of Investment restrictions. They are also free from the Local Government Tax (Pourosova). On April 25, 2016, the Bangladesh government announced two gazettes in this regard.
Typically, before operating in Bangladesh, a corporation must receive various approvals and registrations from the Board of Investment (“BOI”). In some circumstances, it is extremely difficult to import capital machinery without necessary BOI paperwork. We have yet to see how this will play out in practice, as economic zones are free from this rule.
Pourosova typically charges a tax on commercial organizations founded or operating within its jurisdiction. Economic zones are currently immune from these taxes.