Bangladesh offers some of the world’s most competitive fiscal non-fiscal incentives. BOI can advise further on this matter.
- Remittance of royalty, technical know-how and technical assistance fees.
- Repatriation facilities of dividend and capital at exit.
- Permanent resident permits on investing US$ 75,000 and citizenship on investing US$ 500,000.
- Tax holidays
- In the Dhaka & Chittagong Divisions: 100% in first two years: 50% in the year three and four: and 25% in the year five.
- In the Rajshahi, Khulna, Sylhet, Barisal Divisions and three Chittagong Hilly Districts: 100% for first three years, 50% for next three years, 25% for year seven.
- Depreciation allowances
- Accelerated depreciation for new industries is available at the rate of 50%, 30% and 20% for the first, second and third years respectively, on the cost of plant and machinery.
- Cash and added incentives to exporting industries
- Businesses exporting 80% or more of goods or services qualify for duty free import of machinery and spares, bonded warehousing.
- 90% loans against letters of credit and funds for export promotion.
- Export credit guarantee scheme.
- Domestic market sales of up to 20% is allowed to export oriented business located outside an EPZ* on payment of relevant duties.
- Cash incentives and export subsidies are granted on the FOB** value of selected exports ranging from 5% to 20% on selected products.
*EPZ=Export Processing Zone
**FOB=Free on Board