Regulatory Alerts2020-01-13
Added · Updated
FEPD Circular No. 02: Foreign exchange transactions for IT/Software firms
The limit for Authorized Dealers to remit foreign exchange on behalf of IT/Software firms that are members of BASIS is enhanced from USD 30,000 to USD 40,000 per calendar year. The allowable amount for international cards within this limit is increased from USD 6,000 to USD 8,000, subject to limit availability and specified formalities. The yearly entitlement may be used for bonafide current needs, including digital marketing expenses, while remittances for royalty, technical knowledge, or franchise fees remain subject to prior approval from the Bangladesh Investment Development Authority. These instructions are effective immediately.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular No. 2 Date: 13/01/2020 All Authorized Dealers in Foreign Exchange in Bangladesh Dear Sirs, Foreign exchange transactions for IT/Software firms Please refer to paragraph 39, chapter 10 and paragraph 11, chapter 19 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 in terms of which Authorized Dealers (ADs) are allowed to remit up to USD 30,000, with international card facility within the limit, on behalf of IT/Software firms who are members of BASIS, for payments abroad to meet their bonafide business expenses in a calendar year. 02. It has been decided to enhance the limit to USD 40,000 in a calendar year from USD 30,000. Within the limit of USD 40,000, international cards may be issuable for USD 8,000 instead of USD 6,000 which may be refilled subject to availability of the limit and observance of specified formalities. 03. This is to clarify that the yearly entitlement will be usable by IT/Software firms for meeting bonafide current needs including but without limiting to digital marketing expenses. However, ADs shall comply with the instructions contained in paragraph 25, chapter 10 of GFET regarding the requirements of approval from Bangladesh Investment Development Authority in case of remittance on account of royalty, fees for technical knowledge or technical assistance and franchise fees to foreign persons or institutes. Other instructions in this context shall remain unchanged. Please bring the above instructions, effective immediately, to the notice of all your concerned constituents. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123
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