Tax-Free Benefits for Content Creators, Startups in 2027 Budget

In a major legislative push to support youth, women, persons with disabilities, and innovative entrepreneurs, Prime Minister Tarique Rahman’s government has announced a complete tax exemption on income generated from content creation across digital platforms. The government has extended these fiscal benefits far beyond the traditional IT and freelancing sectors as part of its broader macroeconomic strategy.

Finance Minister Amir Khosru Mahmud Chowdhury made the historic announcement while presenting the national budget for the 2026–27 fiscal year in parliament today, Thursday. The new measures will be implemented through targeted amendments to the Sixth Schedule of the Income Tax Act 2023, upending the previous tax framework where income from digital content creation was strictly subject to taxation under standard individual rates.

Delivering his budget speech, the Finance Minister highlighted the strategic need to streamline foreign earnings into the country's financial system.

"Currently, only IT and freelancing income enjoy tax exemption. I propose extending this tax benefit to all forms of freelancing income. This will encourage freelancers to bring their earnings into the country through formal banking channels."

— Amir Khosru Mahmud Chowdhury, Finance Minister

Seeking to actively promote digital innovation among the youth, the Finance Minister also proposed making income from all forms of content creation completely tax-free. Furthermore, to prioritize youth-led commercial enterprises, he proposed reducing the turnover tax to exactly zero percent for startups, innovative ventures, and technology-driven businesses.

The newly placed budget introduces robust financial buffers for small-scale industries and marginalized demographic groups. The Finance Minister proposed exempting income from annual turnover of up to Tk 5 million (Tk 50 lakh) for SME entrepreneurs.

To foster deeper socio-economic inclusion, the tax-free annual turnover threshold has been set significantly higher for women and entrepreneurs with disabilities, who will enjoy a complete exemption on an annual turnover of up to Tk 7 million (Tk 70 lakh).

In a deliberate effort to decentralize industrial investment outside the country’s two largest economic hubs, the government has introduced specialized tax incentives for investments made beyond the geographical jurisdictions of the Dhaka and Chattogram city corporations.

According to the Finance Minister, these investment incentives will specifically target three core areas: manufacturing industries, tourism facilities, and sports infrastructure. Under this decentralization proposal, investors in these selected sectors outside the two major cities will receive highly lucrative accelerated depreciation benefits, structured at 60 percent in the first year and the remaining 40 percent in the second year.