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How to Pay Contractors in Bangladesh: Complete 2025 Guide

For businesses paying independent contractors in Bangladesh

Quick Summary

Best payment methods for Bangladeshi contractors:

  1. Wise (lowest fees, best rates)
  2. Payoneer (very popular in Bangladesh)
  3. PayPal (limited availability)
  4. Bank transfer (traditional method)

Key requirements:

  • TIN (Taxpayer Identification Number)
  • Written service agreement
  • Currency considerations (USD strongly preferred)
  • NBR tax compliance (contractor's responsibility)
  • Foreign exchange regulations

Why This Guide Is Different

Bangladesh has a rapidly growing tech and outsourcing sector. If you're hiring contractors in Bangladesh, you need to understand:

  • Payment method preferences (Payoneer and Wise are most popular)
  • PayPal limitations (restricted in Bangladesh)
  • Currency considerations (USD strongly preferred over BDT)
  • TIN requirements (Bangladeshi tax identification)
  • NBR compliance (National Board of Revenue)
  • Foreign exchange regulations

Payment Methods Compared

MethodCostSpeedBest For
Wise$3-$101-3 daysRegular payments, best exchange rates
Payoneer$5-$121-3 daysVery popular with Bangladeshi freelancers
PayPalLimitedN/ARestricted in Bangladesh (send only, no withdrawal)
Bank Transfer$20-$403-7 daysLarge amounts, traditional method

Recommended: Wise or Payoneer

Why Wise and Payoneer work best for Bangladesh:

  • Both widely accepted by Bangladeshi contractors
  • Lower fees than traditional bank transfers
  • Reliable and established in Bangladesh
  • Can withdraw to local bank accounts
  • PayPal is restricted (can receive but difficult to withdraw)

Currency Considerations

Bangladeshi contractors strongly prefer USD over BDT for stability and international purchasing power.

USD vs BDT

Pay in USD (recommended):

  • Most contractors prefer USD for stability
  • Better exchange rates through Wise/Payoneer
  • Easier for international transactions
  • Protects against BDT devaluation

Pay in BDT only if:

  • Contractor specifically requests BDT
  • You have BDT operations in Bangladesh

Pro tip: Almost all Bangladeshi tech contractors prefer USD. Always confirm currency preference before setting up payments.

Tax and Compliance Requirements

TIN (Taxpayer Identification Number)

TIN is Bangladesh's tax identification number issued by the National Board of Revenue (NBR).

  • Required for: All contractors providing services
  • Your responsibility: Verify contractor has valid TIN
  • Contractor's responsibility: Register with NBR and maintain TIN

Your Responsibilities (as the client)

  • Verify TIN: Ensure contractor has valid tax ID
  • Written agreement: Have clear service contract
  • Payment records: Keep documentation of all payments
  • No withholding: You don't withhold Bangladeshi taxes (contractor handles this)

Important: As a foreign company paying a Bangladeshi contractor, you typically don't have tax withholding obligations in Bangladesh. The contractor handles their own NBR tax compliance. Consult with a tax professional for your specific situation.

Common Mistakes (And How to Avoid Them)

Mistake 1: Trying to Use PayPal

Problem: PayPal is restricted in Bangladesh. Contractors can receive payments but face difficulties withdrawing funds.

Solution: Use Wise or Payoneer instead. Both are widely accepted and contractors can easily withdraw to local banks.

Mistake 2: Paying in BDT

Problem: Most contractors prefer USD for stability and international purchasing power.

Solution: Always ask contractor's currency preference. Most will prefer USD.

Mistake 3: Not Verifying TIN

Problem: Contractor may not be properly registered with NBR.

Solution: Request TIN certificate before first payment.

Tools for Managing Bangladeshi Contractors

Kontrable is built specifically for managing international contractors:

  • Track payments across Wise, Payoneer, and other methods
  • Store contracts and invoices
  • Handle multiple currencies (USD, BDT, EUR, etc.)
  • Generate payment reports for accounting
  • No per-contractor fees (unlike Deel at $49/month per contractor)

Frequently Asked Questions

Q: Can I use PayPal to pay Bangladeshi contractors?

A: PayPal is restricted in Bangladesh. While contractors can receive payments, they face difficulties withdrawing funds. Use Wise or Payoneer instead.

Q: Should I pay in USD or BDT?

A: Almost all Bangladeshi contractors prefer USD for stability and international purchasing power. Always confirm with your contractor.

Q: What's the best payment method for Bangladesh?

A: Wise and Payoneer are both excellent choices. Wise typically has lower fees ($3-$10), while Payoneer is very popular among Bangladeshi freelancers.

Q: Do I need an EOR platform for Bangladeshi contractors?

A: No. EOR is for employees. Bangladeshi contractors handle their own NBR tax compliance. You just need a good payment method (Wise/Payoneer) and contractor management tool (Kontrable).

Get Started

Managing Bangladeshi contractors?

  1. Verify contractor has valid TIN
  2. Set up Wise or Payoneer business account
  3. Create written service agreement
  4. Confirm currency preference (usually USD)
  5. Get contractor's payment details
  6. Set up regular payment schedule

Want to automate this?

Kontrable launches January 2026 with contractor management tools built for international teams.

Join the Waitlist →

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