BB relaxes payment rules for availing foreign services

BB relaxes payment rules for availing foreign services
Bangladesh Bank yesterday relaxed guidelines for businesses to remit money in order to avail providers from foreign companies.

Businesses should be able to send up to 1 1 % of their total annual sales seeing as declared within their previous year's tax return or $100,000, whichever is higher, according to a central bank notice.

Previously no more than 1 per cent of annual sales or $100,000 could be remitted without prior approval from the central bank.

However, prior permission needed to be taken if that 1 % amounted to over $100,000 according to the previous guidelines of the BB.

In most cases, businesses remit profit the type of audit, certification, testing, training, valuation and consultancy service fees and so on.

The central bank has taken a couple of measures to relax the foreign exchange rules within its effort to bring ease to conducting business, said a BB official.

The brand new rules will empower banks to make outward remittances on behalf of their customers for getting together with current legitimate expenses within the set threshold, he said.
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