Paying taxes is a duty. But nobody likes to pay more than they must. We all want to save money.

Did you know your charity can lower your tax bill?

It may seem improbable. Giving away money results in the government lowering your taxes. But it is true. The tax benefits of donation in Bangladesh are a powerful tool. They let you support the poor and save your own hard-earned money at the same time.

However, the rules confuse many people. You cannot just give cash to anyone. You must follow the rules set by the National Board of Revenue (NBR). If you make a mistake, you lose the benefit.

We’ll keep things straightforward in this guide. We will explain how the system works. We will show you who qualifies. We will help you turn your donation to the SPAR Project into a smart financial move.

Why Does the Government Give Tax Breaks?

The government cannot solve every problem alone. They need help. They need citizens to support hospitals, schools, and the poor.

To encourage you, the NBR offers a reward. They call this a “tax rebate.”

When you donate to approved places, the NBR reduces your total tax. They do not just lower your income; they directly subtract money from your final tax bill. This is a win-win. You help society, and the government helps your wallet.

Who Can Claim These Benefits?

Not everyone receives a tax cut. You must meet specific criteria.

1. Individual Taxpayers

Do you have a TIN (Tax Identification Number)? Do you file an annual tax return? If yes, you qualify. You claim this benefit under the “Investment Allowance” section of your tax form.

2. Companies

Businesses can also claim benefits. Usually, they do this through Corporate Social Responsibility (CSR). The rules for companies are different. They often treat donations as a “business expense” to lower their taxable profit.

Most people reading this are individual taxpayers. So, we will focus on you.

Where Must You Donate?

This is the most important rule. You cannot donate to your neighbor and claim a tax cut. The NBR does not allow that. To get the tax benefits of donation in Bangladesh, you must give to government-approved organizations.

Eligible Places Include:

• The Government Zakat Fund.
• NBR-approved charitable hospitals.
• Schools and universities recognized by the government.
• Organizations for the disabled.
• Approved NGOs: Charities that have a specific tax-exempt certificate from the NBR.

Important Warning:

Always ask the charity, “Do you have NBR approval for tax rebates?” If they say no, your donation is still a charitable deed, but it will not lower your taxes.

How Much Can You Invest? (The 20% Rule)

You have a limit. You cannot invest all your money to avoid taxes completely.

The NBR sets a cap on your “Investment Allowance.”

Currently, you can claim benefits on investments up to 20% of your total taxable income.

Your donations sit inside this 20% box. This box also includes:

• Life insurance premiums.
• DPS (Deposit Pension Scheme).
• Savings Certificates (Sanchaypatra).
• Stock market investments.

If you already filled this 20% box with savings certificates, donating more won’t lower your taxes further. But if you have space in that box, donations are the perfect way to fill it.

The Math: How Much Money Do You Save?

Let’s do the math. It is simpler than you think.

The NBR usually gives a 15% rebate on your eligible investment.

Let’s look at an example:

Imagine Mr. Khan.

• Taxable Income: 1,000,000 BDT.
• Allowed Investment (20%): 200,000 BDT.
• His Donation: He donates 50,000 BDT to an approved charity.

The Calculation:

Mr. Khan gets 15% back on that 50,000 BDT.

• 50,000 x 15% = 7,500 BDT.

Mr. Khan pays 7,500 BDT less in tax this year. He helped a charity, and the government paid him back a portion of it.

Does Zakat Count for Tax Rebates?

We get this question often. Muslims must pay Zakat. Does this religious duty also offer tax benefits for donations in Bangladesh?

The Answer: Yes and No.

No: If you distribute Zakat to a poor relative, it does not count. Why? Because there is no official receipt. The NBR cannot track it.

Yes, if you contribute Zakat to a designated Government Zakat Fund or an NBR-approved charity with a Zakat account, it counts. You must get a receipt. This receipt proves your payment to the tax authorities.

So, you can fulfill your religious duty and get a tax break. You just need to use the right channel.

Keep Your Paperwork

The tax office loves paper. If you claim a rebate, you must prove it.

If you face an audit, the tax officer will ask for evidence. You need to show:

1. Money Receipt: The charity must give you a receipt. It should show their name and registration number.
2. Bank Proof: Did you pay by check or bank transfer? Keep the bank statement. This form of proof is better than cash. It is harder to fake.
3. Certificate: Some big NGOs give a tax certificate at the end of the year. Ask for it.

Scan these documents. Keep them in a folder. When you file your return in November, you will be ready.

Corporate Social Responsibility (CSR)

Are you a business owner? You have even more options.

The government wants companies to help society. They issue special orders called SROs. These orders list specific areas for CSR.

Common CSR Areas:

• Common CSR areas include disaster relief, such as flood aid.
• Building hospitals in rural areas.
• The establishment of schools for street children is also a priority.

If your company donates to these causes, you might treat the donation as an expense. This lowers your company’s profit. Lower profit means lower corporate tax.

Avoid These Common Mistakes

Don’t lose your money. Avoid these simple errors.

Mistake 1: Donating Cash

It is difficult to prove cash donations. The tax officer might reject your claim. Always use a bank, an app (like bKash), or a check.

Mistake 2: Ignoring the Cap

Remember the 20% limit. If you earn 10 lakh taka, your investment limit is 2 lakh taka. If you donate 3 lakh taka, you only get a rebate on the first 2 lakh.

Mistake 3: Wrong Dates

The tax year runs from July 1 to June 30. If you donate on July 5, 2026, you cannot claim it for the 2024-2026 tax year. You must wait for the next year.

Why Choose SPAR Project?

You want to save tax. But you also want to help people.

The SPAR Project makes your money work hard. We focus on:

• Feeding the Hungry: We provide food to families in crisis.
• Transparency: We show you where every Taka goes.
• Impact: We work directly in the field. We do not waste money on fancy offices.

When you donate to us, you help Bangladesh grow. And if you follow the rules, you help your bank balance too.

Final Thoughts

Smart financial planning includes charity.

The tax benefits of donation in Bangladesh are real. These benefits exist to assist you in helping others.

Don’t view charity as a loss. View it as an investment. You invest in society. You invest in the poor. And the government gives you a return on that investment.

Check your investment allowance today. Do you have space left in your 20% limit? If yes, donate before June 30. Lower your tax bill and purify your wealth.

[Donate to SPAR Project Now & Save Tax]