Expats payroll services in Bangladesh: split payroll, 30% non-resident tax, remittance
Monthly payroll for foreign nationals in Bangladesh — residency-based withholding, allowances and perquisites, split-salary and remittance handling, and departure tax clearance — for USD 99 per expatriate per month on top of standard payroll.
What are Expats payroll services in Bangladesh?
Expats payroll services in Bangladesh are the monthly processing of foreign nationals' pay under the country's residency-based income-tax rules: withholding at resident slab rates or the 30% non-resident rate, valuing housing and other perquisites, running any split between Bangladesh and home-country payroll within Bangladesh Bank remittance rules, and producing the year-end statements and departure clearance the assignee needs.
Expatriate payroll fails in predictable ways: withholding at the wrong rate for the first year, allowances treated as non-taxable when they are perquisites, foreign-currency payments made without Bangladesh Bank cover, and a departing assignee unable to obtain tax clearance because returns were never filed. Nexus Payroll's expat payroll desk sits on top of our standard payroll service and coordinates with the advisory and Expats HR desks so the tax position agreed at planning is the one that runs every month.
What does the Expats payroll service include?
The service covers residency tracking and rate selection, monthly withholding and deposit under the Income Tax Act 2023, perquisite valuation for housing, cars and schooling, split-payroll coordination and remittance documentation, gross-up calculations for net-pay guarantees, foreign-currency reporting to your finance team, annual salary certificates and return support, and the departure tax clearance certificate.
Residency tracking
Day count against the 182- and 90/365-day tests, projected status for withholding, year-end true-up and refund or top-up handling.
Withholding and perquisites
Slab or 30% flat rate as applicable; housing, car, school and club benefits valued under the perquisite rules; NBR deposit and challans monthly.
Split payroll and remittance
Bangladesh base in taka, offshore element documented for Bangladesh Bank, both reported on the Bangladesh return; treaty relief coordinated with home-country advisers.
Gross-up and cost reporting
Net-pay guarantees grossed up correctly; employer cost by assignee in your currency for assignment budgeting and intercompany recharges.
Year-end and returns
Salary certificates, withholding statements and support for the assignee's return by Tax Day (30 November), including treaty claims.
Departure clearance
Final settlement, tax clearance certificate from the Deputy Commissioner of Taxes, and closure of e-TIN obligations before the assignee leaves.
How does expatriate payroll differ from local payroll in Bangladesh?
Local employees are always resident, taxed at slab rates above the BDT 375,000 threshold, paid wholly in taka and covered by the Labour Act's benefit rules. Expatriates may be non-resident (flat 30%, no threshold), often receive housing and schooling as taxable perquisites, may be paid partly offshore, and need departure clearance — rules local payroll never triggers.
| Payroll element | Local employee | Expatriate (Nexus expat payroll) |
|---|---|---|
| Tax status | Resident | Resident or non-resident by day count |
| Rate | 0–30% slabs above BDT 375,000 | Slabs if resident; flat 30% if not |
| Currency of pay | Taka | Taka base; documented offshore element permitted |
| Housing / schooling | Allowance within NBR limits | Perquisite valued and taxed; gross-up if net guaranteed |
| Provident Fund / gratuity | Statutory where applicable | Contractual; usually replaced by home-country pension |
| Exit | Final settlement under the Labour Act | Final settlement + tax clearance certificate + permit cancellation |
This page is informational and reflects Bangladesh law as we understand it on the review date. It is not a substitute for licensed legal or tax advice in Bangladesh or in your own jurisdiction. Statutory figures change; confirm current values with your adviser before relying on them.
How much do Expats payroll services cost?
Nexus Payroll charges USD 99 per expatriate per month for expat payroll, in addition to the standard USD 49 payroll fee or the USD 299 EOR fee where we are the employer. Year-end return support is included; home-country tax filings are referred to your adviser. No set-up fee; 30 days notice.
Expats payroll FAQ
How is an expatriate's salary taxed in the first year?
It depends on residency status by year-end: if the assignee reaches 182 days in the income year, the whole year's Bangladesh income is taxed at resident slab rates; if not, at the flat 30% non-resident rate. Because withholding runs monthly from day one, we withhold on the projected status and true up at year-end, and model the start date with the advisory desk to avoid an avoidable non-resident year.
Can we pay the expatriate in USD?
Salary paid in Bangladesh must be in taka; a documented portion may be remitted abroad in foreign currency under Bangladesh Bank rules, subject to tax having been withheld on the full amount. Most clients pay a taka base locally and a home-currency element through home payroll or remittance, with both reported on the Bangladesh return.
Are housing and school allowances taxable in Bangladesh?
Generally yes, as salary, subject to the NBR's exemption limits for house rent and the treatment of benefits in kind. Employer-leased housing and direct school payments are valued and added to taxable income under the perquisite rules. We structure allowances to use the exemptions available and gross up where you guarantee net pay.
Related pages
- Expatriate Advisory Services — Pre-arrival assessment, tax residency, structuring
- Expats HR Services — Contracts, relocation, permits, renewals
- Expatriate work permit and visa processing — the hub page
- Employer of Record — Nexus as local sponsor and employer
- Payroll outsourcing — the local-staff payroll the expat payroll sits on
- Pricing
- FAQ
Run expatriate payroll at the right rate from month one
Send the assignee's start date, package and any offshore element. We return the withholding position and a monthly cost model within two business days.