Startup sector likely to get full tax exemption

The proposed national budget for FY2026-27 is expected to introduce significant tax incentives for freelancers, digital content creators and technology-driven entrepreneurs.

According to Finance Ministry sources, the government is considering exempting income from freelancing and content creation from taxation as part of efforts to strengthen the digital economy, generate employment and encourage entrepreneurship among young people.

Officials said the government is placing special emphasis on creating opportunities for the new generation and accelerating the growth of the technology sector.

As part of this strategy, a proposal is under review to grant full income tax exemption on earnings from all forms of freelancing activities.

The proposed measure may also extend to income generated through digital platforms such as YouTube, Facebook and other online content channels. If approved, thousands of freelancers, YouTubers, digital content creators and social media influencers would be able to enjoy complete tax exemption on their earnings.

The government is also considering incentives for innovative startups and technology-based enterprises.

Under the proposal, transaction-based taxes for new ventures, innovation-driven projects and IT-focused businesses could be reduced to zero, providing further support for the country’s growing startup ecosystem. In addition, the budget may include enhanced tax benefits for women and persons with disabilities engaged in business activities.

While small and medium-sized entrepreneurs already enjoy certain tax concessions, the tax-free threshold is likely to be increased for these groups.

Under the proposed measure, women and disabled entrepreneurs with annual turnover of up to Tk7 million would be exempt from paying income tax.