Bangladesh Bank widens scope of outward remittance
From now, current account payments like audit fee, certification fee, commissioning fee, testing fee, valuation fee, etc can be remitted abroad following proper regulations
The Bangladesh Bank has widened the scope of outward remittance by allowing sending money abroad for the payment of various fees.
From now, current account payments like audit fee, certification fee, commissioning fee, testing fee, valuation fee, etc can be remitted abroad following proper regulations, said a circular issued by the central bank on Thursday.
Currently, industrial enterprises producing goods for the local market and service sector industries are allowed to remit through their banks up to 1% of annual sales as declared in their previous year's income tax return on account of costs of training and consultancy services as per relevant contracts with foreign trainers or consultants.
In the latest development, banks are allowed to make transactions of new payments following regulations regarding deductions and payments of taxes at source, value added taxes and other levies applicable on the payments have duly been complied with.
The facilities will equally be applicable to industrial enterprises operating in domestic processing areas of economic zones (EZs) having sales in taka.
However, in case of the availability of foreign exchange in the respective foreign currency accounts – out of legitimate sources – of concerned customers, banks will first use such balances before the utilisation of their own sources by conversion of taka fund.
As usual, banks will observe due diligence with regards to customers' KYC (know your customer) and AML (anti money laundering) standards, reporting routinely to the Bangladesh Bank.
In another circular, banks were allowed to remit software maintenance fees without taking approval from the Bangladesh Bank.
In this case, banks will follow some instructions including one that asks them to be ensured of the concerned software having a legitimate licence.
Banks will obtain valid agreements for the maintenance/support services executed with foreign service providers.
Remittance requests from the remitters shall be supported by invoices and an undertaking from remitters to the effect that they have not remitted the payments from other banks and shall not do the same in future and they will bring back the remitted amount or its parts in case of non-receipt or partial receipt of services.
Regulations regarding payments of tax at source, value added taxes and other levies applicable on the payments need to be complied with, according to the circular.
