NBR Clarifies 5% Withholding Tax on Savings Certificates Up to Tk 5 lakh
Dhaka, Feb 2, 2026: The National Board of Revenue (NBR) has clarified that a 5 per cent withholding tax will apply to profits earned from savings certificates when total investment does not exceed Tk 500,000.
At the same time, the tax authority confirmed that profits from pensioner savings certificates up to the same limit will remain tax-free, as before.
The clarification was issued on Tuesday (February 3) through an official letter sent by the NBR to the Director General of the National Savings Directorate.
Tax Rate Based on Total Investment
According to the NBR’s directive, if an individual’s combined investment across all types of savings certificates remains within Tk 500,000, the profit earned from those investments will be subject to a 5 per cent withholding tax, in line with a government notification issued in 2019.
Pensioner Savings Certificates Remain Exempt
The NBR has also reiterated special tax treatment for pensioner savings certificates. If an individual’s accumulated investment in pensioner savings certificates alone does not exceed Tk 500,000 in a given tax year, no withholding tax will be deducted from the profit earned.
This means pensioners investing within the specified limit will continue to enjoy full tax exemption on returns from this particular savings instrument.
Clarification Aims to Remove Confusion
The clarification comes amid growing complaints from investors who reported that 10 per cent tax was being deducted at source even on profits from investments below Tk 500,000. The issue sparked confusion and dissatisfaction among savings certificate holders, prompting widespread discussion.
The NBR said the latest instruction was issued specifically to eliminate misinterpretation and ensure uniform application of tax rules by savings offices.
Higher Tax for Larger Investments
Referring to Section 105 of the Income Tax Act 2023, the NBR stated that if an individual’s total investment in all savings certificates exceeds Tk 500,000 in a single tax year, profits will be subject to a 10 per cent withholding tax.
Types of Savings Certificates
Currently, four types of savings certificates are available under the National Savings Directorate. These include the Family Savings Certificate, Pensioner Savings Certificate, Five-Year Bangladesh Savings Certificate, and Three-Month Profit-Based Savings Certificate.
While the family savings certificate is reserved exclusively for women, the remaining three instruments are open to both individuals and institutional investors.
