Fiscal and Non Fiscal Incentives for Investment

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Offline Mrittika Shil

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Fiscal and Non Fiscal Incentives for Investment
« on: April 22, 2018, 11:37:54 AM »
Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BOI can advise further on this matter. In summary and in most cases, these amount to the following: Remittance of royalty, technical know-how and technical assistance fees. Repatriation facilities of dividend and capital at exit. Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.

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Fiscal Incentives

1. 10 years tax holiday for the Industries to be established before 1st January, 2012 and Industries to set up after 31st December, 2011 tax holiday period will be:

Tax exemption period                                          Rate of tax exemption

First 02 years (1st and 2nd Year)                           100%
Next 02 years (3rd and 4th Year)                           50%
Next 01 years (5th Year)                                        25%

2. Duty free import of construction materials
3. Duty free import of machineries, office equipment & spare parts etc.
4. Duty free import and export of raw materials and finished goods
5. Relief from double taxation
6. Exemption from divident tax
7. GSP facility available
8. Accelerated depreciation on machinery or plant allowed
9. Remittance of royalty, technical and consultancy fees allowed
10. Duty & quota free access to EU, Canada, Norway, Australia etc.


Non – Fiscal Incentives


1. 100% foreign ownership permissible
2. Enjoy MFN (most favored nation) status
3. No ceiling on foreign and local investment
4. Full repatriation of capital & dividend
5. Foreign Currency loan from abroad under direct automatic route
6. Non-resident Foreign Currency Deposit (NFCD) Account permitted
7. Operation of FC account by ‘B’ and ‘C’ type Industries allowed.

Facilities

1. No UD, IRC, ERC and renewal of Bond license
2. Work permits issued by BEPZA
3. Secured and protected bonded area
4. Off-Shore banking available
5. Import on Documentary Acceptance (DA) basic allowed
6. Bank of Back L/C
7. Import and Export on CM basis allowed
8. Import from DTA (Domestic Tariff Area)
9. 10% sale to DTA (Domestic Tariff Area)
10. Customs clearance at factory site
11. Simplified sanction procedure
12. Sub-contracting with export oriented Industries inside and outside EPZ allowed
13. Relocation of foreign industries allowed
14. Accords Residentship and Citizenship
15. One Window same day service and simplified procedure.