General

BB further simplifies outward remittance rules for industrialists

Bangladesh Bank has further simplified the process of outward remittance of foreign exchange – crucial to make payments for goods or services bought from overseas sellers – for industrial entrepreneurs to help expand their businesses.

A central bank circular, issued by Foreign Exchange Policy Department (FEPD) on Monday, said, “To bring further simplification, it has been decided that Authorized Dealers (ADs) may remit admissible expenses up to 1 percent of annual sales as declared in the previous year’s income tax return of the concerned remitter-companies or USD 100,000, whichever is higher”.

The circular also referred to a previous circular issued November 19, 2020 regarding wider scope for outward remittances within the purview of one percent of annual sales as declared in the previous year’s income tax return of the concerned remitter-companies.

Other instructions in this regards shall remain unchanged, said the circular.

In the previous circular the BB allowed the industries producing goods for local markets and also service sector industries to remit to foreign exchange for legitimate other current account payments like audit fee, certification fee, commissioning fee, testing fee, valuation fee, etc. within the purview of the BB regulation.

Source: United News of Bangladesh