Tax Planning
Bangladesh: New Tax Incentives for Renewable Solar, Edible Oil & Donations
Bangladesh reintroduces tax exemptions: for income from renewable solar sources, for edible oil manufacturers using local oilseeds, and rebates for donations.
By NomadicTax Research Team • 5-8 min read • August 21, 2026
## Recent Policy Updates in Bangladesh
On 11 June 2026, Bangladesh’s National Board of Revenue (NBR) issued several S.R.O notifications covering:
- **Tax exemption** on income earned by edible oil manufacturing industries that use *locally produced oilseeds* as raw materials → income from such operations is exempt from income tax. ([nbr.gov.bd](https://nbr.gov.bd/regulations/sros/income-tax-sros/website?utm_source=openai))
- **Tax exemption** for electricity generated from **renewable solar energy sources**, encouraging clean energy adoption. ([nbr.gov.bd](https://nbr.gov.bd/regulations/sros/income-tax-sros/website?utm_source=openai))
- **Income tax rebate facilities** for taxpayers who make **donations or contributions**, incentivizing charitable giving. ([nbr.gov.bd](https://nbr.gov.bd/regulations/sros/income-tax-sros/website?utm_source=openai))
## Who Benefits and How
- **Edible oil manufacturers**: If your mills source oilseeds domestically and produce cooking oil, you're eligible for full exemption on profits under the specified S.R.O.
- **Solar power generators** (both standalone and captive consumption): Income generated is tax-free under this incentive. This encourages private solar projects and rooftop systems.
- **Donors**: Individuals and entities donating under eligible categories can claim rebates, reducing overall tax payable.
## Practical Application & Tax Planning
- A manufacturer purchasing imported oilseeds will *not* qualify. Use local supply chains.
- For solar projects, ensure proper certification as “renewable solar energy source” under Bangladesh rules.
- Donations must satisfy conditions under NBR’s S.R.O (e.g. recognized charity or specified fund) to claim rebates.
## Example Scenarios
| Scenario | Benefit |
|---|---|
| Edible oil company sourcing local seeds | Entire business income exempt from tax due to manufacture with local raw material |
| Individual installing rooftop solar and selling surplus electricity | Income from electricity produced via solar may be exempt |
| Corporate donor giving to government-approved hospital fund | Gets rebate to offset taxable income / tax liability |
## Compliance Checklist
- Maintain documentation proving use of **locally produced** oilseeds.
- For solar energy income, get certificates/approval if needed.
- For donations: get receipts, maintain records of authority recognition.
- File the S.R.O reference when claiming exemption or rebate in tax return.
**Summary**: These measures are high-impact for clean energy, agriculture, and philanthropy. Businesses and individuals should evaluate whether their operations qualify to take advantage of these incentives.