incentives - Home How to Invest Investment Incentives...

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Home How to Invest Investment Incentives Investment Incentives Tax exemptions Incentives for investors Duty Concessionary duty Income tax Non-resident Bangladeshis Remittances Other incentives Exit Additional export-oriented incentives Ownership Investing in the stock market In order to encourage the inflows of FDI the government of Bangladesh offers one of the most liberal investment policies and attractive packages of fiscal, financial and other incentives to foreign entrepreneurs in South Asia. Major incentives to stimulate private sector direct investment are listed below. Tax exemptions Generally five to seven years' tax exemptions are available for many business investments. However, for electric power generation tax exemptions are provided for up to 15 years. Top Duty No import duty is applicable for export oriented industry. For other industries it is 5% ad valorem. Top Income tax Double taxation can be avoided in most cases as the country (Bangladesh) benefits from many bilateral investment agreements. Exemptions of income tax up to three years for the expatriate employees in industries are specified in the relevant schedules of the income tax ordinance. Top Remittances Facilities for full repatriation of invested capital, profits and dividends are the norm in most situations Top
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Exit An investor can wind up an investment either through a decision of an annual or extraordinary general meeting. Once a foreign investor completes the formalities to exit the country, he or she can repatriate the net proceeds after securing proper authorization from the central bank (Bangladesh Bank). Top Ownership Foreign investors can set up ventures, either wholly owned or in joint collaboration, with local partners. Top Investing in the stock market Foreign investors are allowed to participate in initial primary offerings (IPOs) and right issues without any regulatory restrictions. Also, incomes from dividends are tax-exempt for investors. Top Incentives and facilities for the investors Industries are eligible for tax holidays for the following periods according to the location of the establishment. The period of tax holiday is calculated from the month of commencement of commercial production or operation of the industrial undertaking. The eligibility of a tax holiday is to be determined by the National Board of Revenue (NBR). The tax holiday facility is applicable to industries set up in Bangladesh before June 30, 2012. Accelerated depreciation in lieu of a tax holiday is allowed at the rate of 80% of actual cost of machinery or plant for the year in which the unit starts commercial production and 20% for the following years. The rate of depreciation is 100% for years specified by the NBR. Top
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incentives - Home How to Invest Investment Incentives...

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