New guidelines issued regarding outward remittance of service payments by subsidiaries of foreign companies – Bangladesh Bank

In brief

The Bangladesh Bank issued a circular¹ on outward remittances (circular) on account of service payments by Bangladeshi subsidiary companies to avail recurrent services from their parent or group companies or associates overseas, subject to the following conditions:

• Such services are not locally available;
• More than 50% shares of the subsidiaries are held by the parent or group companies; and
• Such remittance (inclusive of applicable taxes) should not exceed 10% of the net profits in an accounting year.