The Bangladesh Bank has asked foreign individuals and business entities who are providing services in Bangladesh to pay 25% tax against their income before repatriating it as outward remittances.
The central bank's Foreign Exchange Policy Department instructed all the dealer banks through a circular issued in this regard yesterday.
According to the circular, if the authority finds irregularities in repatriating income, then an additional 2% simple interest charge will be applied monthly, apart from the existing 25% tax on income.
The circular enclosed a letter from the National Board of Revenue (NBR).
According to the NBR letter, in case of a requirement to remit the whole of a foreigner's income, a new calculation needs to be made considering the rate of applicable tax.
As per the new calculation, if a foreigner wants to repatriate Tk100 income, the authority will deduct Tk20 as tax and send Tk80 as outward remittance.
But, if a foreigner wants to send the whole of Tk100 abroad, then he will have to pay Tk25 separately as tax, said the NBR.