FEPD Circular Letter No. 12: Obtaining certification from NBR under Double Taxation Avoidance Treaty before remittance abroad on behalf of any company, organization or individual

Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka Ref. No. FEPD-Circular-12 08 Srabon, 1425 FEPD Circular Letter No. 12 Dated: 23 July, 2018 To All Approved Dealer Banks engaged in Foreign Exchange Transactions Head Office / Principal Office.

Dear Sirs,

Reference is drawn to the context of obtaining a certificate from the National Board of Revenue (NBR) regarding the remittance of funds abroad at a reduced withholding tax rate under the "Double Taxation Avoidance Treaty" concluded with various countries, on behalf of any institution, organization, or individual.

Reference is invited to Circular Letter No. 08.01.0000.045.94.17.2014/463(1-60) dated 08.01.2018 issued by the National Board of Revenue (copy enclosed) and the Finance Act 2018 (copy enclosed).

Institutions, organizations, or individuals from countries with which Bangladesh has a Double Taxation Avoidance Treaty in force often claim the benefit of the treaty from banks when remitting their earned funds to their home country from Bangladesh, by paying withholding tax at an exempted/reduced rate. In this regard, an amendment has been made to Section 56 of the Income Tax Ordinance, 1984, through the Finance Act 2018, requiring the aforementioned institutions, organizations, or individuals to obtain the relevant approval/certificate from the National Board of Revenue under the Double Taxation Avoidance Treaty before such remittance.

In light of the above, it is advised that you verify the existence of a certificate from the International Tax Wing of the National Board of Revenue before remitting the aforementioned funds abroad.

Yours faithfully,

Enclosures: As per list

(Md. Abdul Mannan) Deputy General Manager Phone: 9530319

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