Tax Incentives and Investment Conditions
4.1 Foreign exchange regulations (2/2)
Bangladesh is a highly regulated country with respect to foreign exchange controls
Outward remittances are highly restricted. Few outward remittances can be made without prior approval of Bangladesh Bank, e.g.
Dividend
Import payments under L/C mechanism
Training and consultancy fees
Repayment of approved foreign loans
For few outward remittances, specific guidance and conditions have been
prescribed or practiced e.g.
Specific foreign exchange regulations are
present for shipping agents, freight
forwarding agents, courier companies and
airline companies
For remittances which are not given
specific guidance, special permission from
Bangladesh Bank is required
A recent circular from Bangladesh
Investment Development Authority (BIDA)
simplified the process of Royalty and
Technical fees repatriation, wherein
registered private entities can remit
permissible amounts without additional
approval from BIDA, subject to certain
conditions.
KPMG
Transfer of shares and securities
Royalty and technical fees
© 2023 Rahman Rahman Huq and KPMG Advisory Services Limited are entities registered in Bangladesh, and member firms of the KPMG global organisation of independent member
firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in Bangladesh.
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