The National Board of Revenue (NBR) has announced that no tax will be levied on the profits or interest earned from offshore banking units, according to a recent circular issued by the NBR.

This decision, effective immediately, applies to offshore banking units engaged in international banking activities involving non-residents' foreign currency-denominated assets and liabilities. Offshore banking units operate independently from the local commercial banking system and conduct deposit-taking and lending activities with foreign investors without affecting domestic fiscal and monetary policies.

The exemption from profit tax aims to encourage and facilitate international banking activities in Bangladesh by providing a favorable tax environment for offshore banking operations.

This move is expected to attract foreign investors and promote the growth of offshore banking services in the country.