BB eases payment rules for hi-tech park firms

The Bangladesh Bank (BB) has allowed industrial enterprises operating in hi-tech parks to make certain foreign payments from their taka accounts, easing the process of settling royalty, technical know-how and technical assistance fees.

According to a BB circular issued yesterday, firms can remit such fees from taka accounts without prior approval from the BB or the Bangladesh Hi-Tech Park Authority (BHTPA), provided payments stay within prescribed limits.

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The limits are unchanged as per the new circular. For new projects, total fees cannot exceed 6 percent of the cost of imported machinery. For ongoing businesses, the cap is 6 percent of the previous year’s sales, as declared in tax returns.

However, banks will have to make sure the firms do not have other sources of foreign-currency income before allowing the remittances. They must also ensure that applicable taxes and VAT have been deducted and paid. For payments above the 6 percent limit, prior approval from the Hi-Tech Park Authority will still be required. The same approval will be needed for other similar legitimate expenses, regardless of the amount.

The banks handling the transactions must also follow requirements on customer verification, anti-money laundering and combating the financing of terrorism, as well as reporting requirements to BB and the Hi-Tech Park Authority, said the circular.