Outward remittances of royalty, other fees simplified

The Bangladesh Bank (BB) on Sunday asked authorized dealer (AD) banks to follow the guidelines issued by the Bangladesh Investment Development Authority (BIDA) for outward remittances on account of royalty, technical knowledge or technical know-how fees, technical assistance fees and franchise fees.

BIDA under the Prime Minister’s Office (PMO) last month issued new guidelines on outward remittance repatriation for payment, allowing repatriation of outward remittance up to 6% without prior approval of BIDA.

The guidelines allowed remittances of franchise fees and fees payable to contractors in a project, including advance payment. 

In case of advance payment, Bangladesh Bank asked AD banks to observe prevailing regulatory instructions of foreign exchange guidelines.

AD banks shall have been ensured of deductions and payments of source taxes, VAT and other levies applicable against the remittances, as per BB notice issued on the day.