Regulatory Alerts2025-02-19
Added
Outward remittances on account of service payments by subsidiaries of foreign companies
Authorized Dealers may allow outward remittances by local subsidiaries of foreign companies for services from parent or group firms if the services are not locally available and the parent holds more than 50 percent of shares. The gross remittable amount before source tax deduction must not exceed 10 percent of the subsidiary's net profit in an accounting year. Authorized Dealers must verify underlying contracts, competitive pricing, and tax compliance, and require undertakings for adjustments if estimated profits are not achieved. Remittances exceeding this limit require specific applications to Bangladesh Bank with supporting documentation regarding agreements, price competitiveness, and necessity.
Topics
fx
payments
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