The Tax Calculation Module allows you to configure, calculate, and manage employee taxes based on the official Bangladesh Government Tax Slabs. The system automatically applies location-based minimum taxes, personal exemptions, and slab-wise calculations to ensure complete compliance with NBR (National Board of Revenue) rules.
Payroll Configuration #
Navigate to:
Business → Payroll Configuration
This section allows you to configure how taxes are calculated for your organization.
Office Location Settings #
This determines the minimum tax applicable based on your office location.
Is your office located in a City Corporation area?
- ✅ Yes
- 🚫 No
Why this matters:
If your office is within a City Corporation, a higher minimum tax applies (as per NBR rules).
| Area Type | Minimum Tax (BDT) |
|---|---|
| Specific City Corporations (DNCC, DSCC, CCC) | 5,000 |
| Other City Corporations | 4,000 |
| Non-City Areas | 3,000 |
🛈 This setting ensures accurate area-based tax compliance.
Hourly Rate Calculation Basis #
You can define how hourly rates will be calculated for employees.
- Yearly Basis: Hourly rate = Annual salary ÷ Total working hours in a year.
- Monthly Basis: Hourly rate = Monthly salary ÷ Total working hours in a month.
🧮 Choose the basis that aligns with your organization’s payroll cycle.
Festive Bonus Types #
Festive bonuses (like Eid-ul-Fitr, Eid-ul-Adha) are taxable benefits added to the employee’s total annual income.
- Admins can create bonus types under Payroll Configuration.
- Employees with access can assign bonuses from: Employees → Action → Payroll Config
Example:
Bonus Type: Eid Ul Adha
Bonus Amount: 20,000 BDT
The system automatically includes this amount in the annual taxable income.
Tax Rate Calendar (Fiscal Year: 2025–2026) #
Tax rates are dynamically managed and updated yearly based on Bangladesh Government Regulations. 🔗 source
| Slab | Taxable Amount (BDT) | Tax Rate |
|---|---|---|
| 1 | First 350,000 | 0% |
| 2 | Next 100,000 | 5% |
| 3 | Next 400,000 | 10% |
| 4 | Next 500,000 | 15% |
| 5 | Next 500,000 | 20% |
| 6 | Next 2,000,000 | 25% |
| 7 | Remaining income | 30% |
Example Tax Calculations #
Example 1: Monthly Salary – BDT 60,000 #
Yearly Income = 60,000 × 12 = 720,000
| Slab | Taxable Portion | Rate | Tax (BDT) |
|---|---|---|---|
| 1 | First 350,000 | 0% | 0 |
| 2 | Next 100,000 | 5% | 5,000 |
| 3 | Remaining 270,000 | 10% | 27,000 |
| Total Tax | 32,000 |
→ Annual Tax: BDT 32,000
→ Monthly Deduction: 32,000 ÷ 12 = BDT 2,666.67
Special Taxpayer Categories #
Different taxpayer categories enjoy increased exemption limits.
| Category | Exemption Limit (BDT) | Additional Notes |
|---|---|---|
| Women | 400,000 | Applies to all women taxpayers |
| Senior Citizens (65+) | 400,000 | Based on age |
| Disabled Taxpayers | 475,000 | Additional benefit |
| War-Wounded Freedom Fighters | 500,000 | Highest exemption |
| Third Gender | 475,000 | Recognized category |
| Guardian of Disabled Children | +50,000 | Per disabled child |
These limits are automatically applied when configured in the employee’s payroll setup.
Employee Payroll Configuration #
Path: Dashboard → Employees → Payroll Config
Each employee can have individual configurations that directly affect tax calculation.
Available Options: #
- Are you a disabled person? ✅/🚫
- Are you a freedom fighter? ✅/🚫
- Do you have disabled children? (Yes/No → Enter number)
- Is your spouse claiming for disabled children in her tax return? (Yes/No → Enter number)
Example: #
Disabled: Yes
Disabled Children: 1
Spouse Claim: No
Festive Bonus: Eid Ul Fitr – 20,000
System applies:
- First slab = 475,000 (for disabled taxpayer)
- Additional tax credit for one disabled child
How the System Calculates Tax #
The system calculates total annual taxable income using:
Total Taxable = (Salary + Benefits) × 12 + Festive Bonus + Overtime + Adjustment
Then, tax is calculated slab-wise and divided by 12 to determine monthly deduction.
Example: #
Monthly Salary = 100,000
Benefits = 10,000
Festive Bonus = 20,000
Overtime = 5,000
Adjustment = 10,000
Total Annual = (110,000 × 12) + 20,000 + 5,000 + 10,000
= 1,355,000
Tax (using slab rules) = 97,500
Monthly Deduction = 97,500 ÷ 12 = 8,125 BDT
If later a bonus or overtime is added, the system recalculates tax dynamically:
🧾 New annual tax – previous annual tax = additional taxable amount to be deducted next month.
Tax Transparency & Compliance #
All tax calculations and deductions are visible in:
- Employee payslips
- Payroll reports
- Tax summary dashboards
✅ Ensures full transparency, compliance, and easy verification for both HR and employees.
