2020 Bangladesh Funds Remittance and Repatriation Guide
This guide explains how Korea-based firms in Bangladesh repatriate profits, dividends, royalties, technical fees, and payroll to the home country. It covers foreign exchange regulation, Bangladesh Bank approvals, required documentation, and practical operational cautions.
Bangladesh legally guarantees profit and dividend repatriation for foreign direct investment (FDI) entities. At the same time, repatriation timing and documentary requirements follow Bangladesh Bank foreign exchange regulations, and banks may experience processing delays in practice.
100%
Repatriation Guarantee
FDI profits
Bangladesh Bank
Regulatory Authority
Central Bank
100% net
Dividend Repatriation
after tax when approved
Up to 6%
Royalties
of revenue
Up to 6%
Technical Fees
per contract
2~4 weeks
Processing Time
practical benchmark
10%
DTA Withholding
Korea default
FERA 1947
FX Rules
governing law
Repatriation Procedures by Type
Requirements by Repatriation Type
| Type | Approval Authority | Cap | Tax Rate | Required Documents |
|---|---|---|---|---|
| Dividend Repatriation | AD Bank | Net of tax | 10% (DTA) | Board resolution and tax clearance |
| Profit Repatriation | AD Bank | Net of tax | After corporate tax payment | Audit report and tax clearance |
| Royalties | BIDA + BB | 6% of turnover | 10% (DTA) | Contract and BIDA approval |
| Technical Fees | BIDA + BB | 6% of turnover | 10% (DTA) | Contract and BIDA approval |
| Payroll Remittance | AD Bank | Up to 50% | Personal income tax | Payroll records and tax clearance |
| Capital Recovery | BB approval | Initial investment amount | 15% transfer tax | Special BB approval |
Operational Issues
Major Bottlenecks
FX shortageIf dollar liquidity is constrained
Bank handlingUsually 2~4 weeks (delays possible)
Document complexityMany documents required
Tax complianceTax clearance required
Mitigation Measures
Transaction bankUse foreign-currency specialist banks
Advance preparationComplete audit and tax filings first
BIDA supportUse one-stop facilitation service
Legal adviceUse local advisers
Korean Company Practical Guide
01
Select an authorized transaction bank
Choose an Authorized Dealer (AD) Bank with strong experience handling foreign direct investor transactions. Foreign banks such as Standard Chartered, HSBC, and Citibank generally process transactions more quickly, while large local banks (DBBL, EBL) can also be used where appropriate.
02
Prepare annual repatriation plan
At the start of each fiscal year, establish a repatriation plan for dividends, royalties, and technical fees. Align the schedule as follows: audit completion (Apr~Jun) -> tax settlement (Jul~Sep) -> repatriation filing (Sep~Dec), and prepare required documents in advance. Quarterly repatriation cycles are recommended.
03
Design royalty and fee contracts
Design royalty and technical service fee agreements to meet BIDA approval thresholds (within 6% of annual sales). Set clear payment terms, amounts, and contract periods, and obtain BIDA pre-approval in advance to reduce downstream disputes. Prepare TRC documentation to apply the 10% DTA withholding rate.
04
Manage FX risk
Prepare for BDT weakness and dollar liquidity constraints. Use natural hedges through export receivables, forward contracts, and staged repatriation to control currency exposure. Closely monitor policy changes, as Bangladesh Bank may tighten controls when the taka weakens sharply.
Repatriation Flow
Repatriation Process
Year-end close and audit
End of accounting period
→↓
Tax payment
Corporate tax and withholding tax
→↓
Board resolution
Dividend approval
→↓
Bank filing
Submit through AD bank
→↓
Funds transfer
Receipt by Korea parent
With an annual process design and an experienced banking partner, Korea-based firms can repatriate Bangladesh investment earnings in a structured and reliable manner.
Tax System AnalysisReview the 2020 Bangladesh tax framework
Comprehensive Investment IncentivesReview Bangladesh investment incentives in 2020
remittancerepatriationforeign exchangedividend2020