Freelancers & IT Outsourcing Remittance: Tax Status & Foreign Income Rules
Approved ITES and foreign freelancing remittances received through official banking channels enjoy special tax treatment. Documentation, Form C, and return filing requirements.
- Foreign remittance for ITES and software export received through formal banking channels enjoys designated tax exemptions.
- Bank Proceeds Realization Certificate (PRC) and Form C are mandatory supporting documents.
- Filing an annual income tax return remains mandatory even if all income is tax-exempt.
- Local client income or non-ITES work is subject to standard individual tax slabs.
1. Eligible ITES Categories
Software development, web development, digital marketing, graphic design, data entry, and cloud management qualify under recognized Information Technology Enabled Services (ITES).
2. Mandatory Filing Requirements
Having tax-exempt foreign remittance does not exempt a freelancer from filing an annual return. The income must be declared under the exempt schedule to avoid penalties.
Frequently Asked Questions (FAQ)
Q: Can I receive freelancing income via informal channels like hundi?
A: No. Income received through informal channels loses all tax benefits and constitutes money laundering.
Conclusion & Tax Tips
Keep your bank PRCs organized and declare your foreign earnings transparently on your annual e-Return.
All data, tax brackets, thresholds, and statutory interpretations in this article are compiled directly from the Bangladesh Income Tax Act 2023, Finance Ordinance 2026, and official NBR circulars.
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Related Tax Articles & Statutory Guides
Relevant statutory guidelines based on Income Tax Act 2023 & NBR circulars