2027 budget offers tax-free status for content creators, startups, innovative ventures

The government has announced sweeping tax incentives for content creators, freelancers and startups

Prime Minister Tarique Rahman’s government has announced a tax exemption on income from content creation across digital platforms.

It has extended tax benefits beyond the IT and freelancing sectors as part of a broader push to support young people, women, persons with disabilities and innovative entrepreneurs.

Finance Minister Amir Khosru Mahmud Chowdhury made the announcement while presenting the FY2026-27 budget on Thursday.

The measure will be implemented through amendments to the Sixth Schedule of the Income Tax Act. Until now, income from content creation was subject to taxation under standard rates.

“Currently, only IT and freelancing income enjoy tax exemption. I propose extending this tax benefit to all forms of freelancing income,” the minister said.

“This will encourage freelancers to bring their earnings into the country through formal banking channels.”

Seeking to promote innovation among young people, Khosru also proposed making income from all forms of content creation tax-free.

“To prioritise youth, I propose reducing the turnover tax to zero percent for startups, innovative ventures and technology-driven businesses,” he said.

The minister also proposed exempting income from annual turnover of up to Tk 5 million for SME entrepreneurs and up to Tk 7 million for women and entrepreneurs with disabilities.

In a further effort to encourage investment outside the country’s two largest cities, he proposed tax incentives for investments in manufacturing industries, tourism facilities and sports infrastructure beyond the areas of Dhaka and Chattogram city corporations.

Under the proposal, investors in such sectors would receive accelerated depreciation benefits of 60 percent in the first year and 40 percent in the second year, according to the minister.