2021 Bangladesh Fund Repatriation Guide
This guide provides a detailed walkthrough of Bangladesh's 2021 fund repatriation procedures — covering dividend remittance, technology fees and royalties, capital recovery, Bangladesh Bank (BB) foreign exchange regulations, and practical remittance guidance for Korean headquarters.
Bangladesh guarantees foreign investors the free repatriation of dividends, profits, technology fees, royalties, and invested capital. Repatriation is processed through Authorized Dealer (AD) banks in accordance with Bangladesh Bank's foreign exchange management regulations, with BIDA investment registration as a prerequisite.
Free
Dividend Repatriation
after tax
Free
Technology Fees
BB approval
Permitted
Capital Recovery
upon liquidation/sale
20%
Dividend Tax
foreign entity
15%
DTAA Rate
Korea reduced rate
3–7 days
Processing Time
bank remittance
FRC
Required Document
remittance certificate
BB FEPD
Authority
Foreign Exchange Policy Dept.
Repatriation Types and Procedures
Bangladesh Fund Repatriation Types (2021)
| Type | Tax Rate | Approval | Documents | Timeline |
|---|---|---|---|---|
| Dividends | 20% (DTAA: 15%) | AD bank | Board resolution, tax payment | 3–7 days |
| Technology fees | 20% (DTAA: 10%) | BB + AD bank | Contract, tax payment | 7–15 days |
| Royalties | 20% (DTAA: 10%) | BB + AD bank | Contract, tax payment | 7–15 days |
| Capital recovery | None | BB approval | Liquidation documents | 30–90 days |
| Salary repatriation | Post-tax | AD bank | Work permit, tax | 3–5 days |
Bangladesh Bank Foreign Exchange Regulations
Permitted Repatriation Items
DividendsFull amount after tax
Technology FeesWithin 6% of net sales
RoyaltiesPer contract terms
Loan RepaymentPrincipal and interest
Key Requirements
FRCInitial investment certificate required
Tax Pre-paymentAfter withholding tax completion
Audit ReportAuditor confirmation required
Exchange RateAD bank's published rate
Practical Repatriation Guide for Korean Companies
01
Dividend Repatriation Procedure
Board resolution at the Bangladesh subsidiary approving dividend → withholding tax payment (20%, or 15% under DTAA) → repatriation application to AD bank (FRC, board resolution, tax payment proof) → T/T remittance to Korean headquarters account. The process is typically completed within 3–7 business days after the board resolution.
02
Technology Fee and Royalty Repatriation
Enter into a technology transfer agreement or license agreement between the Korean parent company and the Bangladesh subsidiary, and register with Bangladesh Bank. Technology fees are remittable up to 6% of net sales, and royalties per the contract terms. Pay withholding tax (20%, or 10% under DTAA) in advance, then remit through an AD bank.
03
Capital Recovery
Recovery of invested capital upon exit requires Bangladesh Bank (central bank) approval. Following company liquidation or share disposal, the invested principal plus undistributed profits can be repatriated. Notify BIDA of the investment closure, obtain BB foreign exchange approval, and remit through an AD bank. The process takes 30–90 days.
04
Maximizing DTAA Benefits
Utilize the Korea-Bangladesh Double Taxation Avoidance Agreement (DTAA) to reduce withholding taxes: dividends from 20% → 15%, interest from 20% → 10%, royalties from 20% → 10%. To apply the DTAA, submit a Tax Residency Certificate (Korean residency certification) to Bangladesh Bank.
Fund Repatriation Flow
Fund Repatriation Process
Resolution / Contract
Dividend or technology fee
→↓
Tax Payment
Withholding tax
→↓
AD Bank
Repatriation application
→↓
BB Confirmation
FX approval
→↓
Korea Receipt
T/T remittance
Bangladesh's guaranteed free fund repatriation policy, combined with the Korea-Bangladesh DTAA, enables Korean companies to recover their investment returns efficiently.
2021 Tax SystemExplore the 2021 Bangladesh tax system
2021 Investment IncentivesExplore the 2021 Bangladesh investment incentives
RepatriationDividendRemittanceBB Regulations2021
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