Outbound remittance limit for IT firms hiked

Staff Correspondent | Published: 23:12, Jan 13,2020

 
 

The Bangladesh Bank on Monday raised the ceiling on remittance of foreign currency abroad by information technology or software firms to $40,000 from $30,000 for meeting their bonafide business expenses in a calendar year.

The Foreign Exchange Policy Department of the central bank issued a circular in this regards allowing all authorised dealers to remit up to the increased amount with the international card facility on behalf of the IT or software firms who are members of the Bangladesh Association of Software and Information Services.

According to the Guidelines for Foreign Exchange Transactions-2018, authorised dealers are allowed to remit the foreign currency within the limit on behalf of clients.

International cards may be issuable for $8,000 instead of $6,000 and may be refilled subject to availability of the limit and observance of specified formalities, the circular said.

The decision had come in effect immediately, it said.

It said that the yearly entitlement would be usable by IT or software firms for meeting bonafide current needs, including digital marketing and other expenses.

ADs, however, shall comply with the instructions of the GFET on requirement of approval from the 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.

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

 

Advertisement

images