Tax-free income, VAT exemption proposed for content creators

The government is set to propose a complete tax exemption on income earned by freelancers and content creators, alongside the withdrawal of VAT on services provided by them, as part of the national budget FY2026–27.

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to present the budget in the Parliament at 3:00pm on Thursday (11 June).

Currently, tax exemption facilities apply only to income from IT freelancing. Under the new budget proposal, the benefit is expected to be expanded to cover all forms of freelancing income, regardless of sector.

The government believes the move will encourage freelancers to repatriate their earnings through formal banking channels, boosting foreign currency inflows and supporting the digital economy.

The proposed budget also seeks to exempt income generated from all forms of content creation from taxation.

The government views the earnings of millions of young people engaged in creative work on digital platforms as an increasingly important component of the country’s digital economy.

At present, services provided by freelancers and content creators are subject to a 15% VAT. The proposed budget would remove this VAT entirely.

In addition, the government plans to extend VAT exemptions on local operations and office rent for startup companies until 2035, providing further support to the country’s growing technology and innovation ecosystem.

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The budget is also expected to propose a zero percent turnover tax for technology-based businesses as part of efforts to foster a globally competitive creative economy and promote entrepreneurship among young people.

Officials say the measures are aimed at harnessing the digital skills and creativity of the country's youth while strengthening Bangladesh’s position in the global digital services market.