About us
WHO WE ARE
Ever since the independence of Bangladesh, Japanese companies have been doing business in Bangladesh in various sectors
About us Japan Desk.
Why Bangladesh?
Bangladesh is one of the most promising emerging markets in the world
Bangladesh is one of the most promising emerging markets in the world and foreign investors have well started to recognize it as a market to keep an eye on. Investment opportunities have opened up in Bangladesh for its competitive wages, strategic location, stable policies, exchange rate and political situation, developing infrastructure and huge youth working force. Bangladesh offers generous opportunities for investment under its liberalized Industrial Policy and export-oriented and private sector-led growth strategy. Bangladesh offers special privileges for Japanese inventors investing in various sectors and also investing in the various economic zones situated across the country. Some of these are as follows:
Tax holiday and exemptions
5-10 years of Tax Holiday and reduced tax depending on areas. 100% tax exemption on income and capital gain for certain projects under Public Private Partnership (PPP) for 10 years. 100% tax exemption from software development, Nationwide Telecommunication Transmission Network or Information Technology Enabled Services. 50% of income derived from export is exempted from tax. Exemption of customs duties on capital machineries; Exemption of import duties on raw material used for producing export goods; etc.
DOUBLE TAXATION REGIME
NBR is entrusted to negotiate Double Taxation Agreements (DTA) with foreign countries to promote FDI in Bangladesh. The DTA is an agreement between two countries seeking to avoid double taxation by defining the taxing rights of each country with regard to cross-border flows of income and providing for tax credits or exemptions to eliminate double taxation.
Bangladesh has a double taxation avoidance agreement with more than 30 major trading partner countries, including Japan. Expatriate employees involved in specific sectors can also avail income tax exemption for up to 3 years.
Bipartite agreements with Japan govt. to accelerate and facilitate the trade between the countries, e.g. a list of goods/industries that falls in the subsidized quota/tariff charges.
Capital repatriation
Full repatriation of capital invested from foreign sources will be allowed. Profits and dividends accruing to foreign investment may also be transferred in full. If foreign investors reinvest their dividends and or retained earnings, those will be treated as new investment.
Accelerated depreciation
Industrial undertakings not enjoying tax holiday will enjoy accelerated depreciation allowance. Such allowance is available at the rate of 100 percent of the cost of the machinery or plant if the industrial undertaking is set up in the areas falling within the cities of Dhaka, Narayanganj, Chittagong and Khulna and areas within a radius of 10 miles from the municipal limits of those cities.
Investing in the stock market
Foreign investors are allowed to participate in Initial Public Offerings (IPOs) without regulatory restrictions. Capital gain from listed shares is tax-exempt for individual investors and lower tax rate is applicable for company and others entities
Other incentives
Citizenship by investing a minimum of USD $500,000.00 or by transferring USD 1,000,000.00 to any recognized financial institution (non-repatriable).
Permanent residency by investing a minimum of USD 75,000.00 (non-repatriable).
Bangladesh is on the verge of a significant breakthrough in terms of both international investor confidence and significant inflow of new investment funds. Accelerated economy in Bangladesh will not only benefit Bangladesh but also world trade and commerce.