Outward remittances on account of service payments by subsidiaries of foreign companies

Authorized Dealers (ADs) can now process outward remittances without prior approval from Bangladesh Bank for service payments by local subsidiaries of foreign companies, provided the following conditions are met:

– The services are unavailable locally.
– The parent company holds over 50% of shares.
– The remittance does not exceed 10% of net profit.

ADs must verify contracts, ensure tax compliance and report transactions.

If the above conditions are not met, ADs must obtain approval from Bangladesh Bank with supporting documents.