Economic Reporter :
Authorized Dealers (ADs) now can repatriate inward remittances against small value service exports in non-physical form including Information and Communication Technology (ICT) related services through Online Payment Gateway Service Providers (OPGSPs).
“To widen the scope for repatriation of ICT related payments, it has been decided that ADs may provide facilities to credit inward remittances received in international card number or account against the services provided by individual developers or freelancers,” according to a circular issued by Bangladesh Bank (BB) on Tuesday.
In this context, ADs shall issue to individual developers or freelancers international cards (termed as ‘Freelancer Card’) having duel currency units with features of being prepaid from abroad, the circular added.
“On receipts of the payment, up to eligible Exporter’s Retention Quota (ERQ) portion may be credited at the options of beneficiaries in foreign currency unit of the card, the remainder mandatorily in local currency unit after conversion at prevailing exchange rate,” BB instructed ADs through the circular.
The balance held in foreign currency unit of the card as ERQ is usable for payment, through usual banking channel, on international current account transactions for bonafide business expenses including legitimate expenses for personal purposes, the circular added.
The circular also said, “The cards may be used for permissible online transactions from Bangladesh. Outward remittances from foreign currency balance are subject to fulfillment of taxes payment obligations, if any.”
Inward receipt exceeding USD 10,000 or equivalent is subject to declaration on Form C (ICT), the circular added.
The circular also said ADs shall report the transactions to Bangladesh Bank in relevant statement or schedule and online reporting system mentioning appropriate code relevant to ICT or computer services.
Authorized Dealers (ADs) now can repatriate inward remittances against small value service exports in non-physical form including Information and Communication Technology (ICT) related services through Online Payment Gateway Service Providers (OPGSPs).
“To widen the scope for repatriation of ICT related payments, it has been decided that ADs may provide facilities to credit inward remittances received in international card number or account against the services provided by individual developers or freelancers,” according to a circular issued by Bangladesh Bank (BB) on Tuesday.
In this context, ADs shall issue to individual developers or freelancers international cards (termed as ‘Freelancer Card’) having duel currency units with features of being prepaid from abroad, the circular added.
“On receipts of the payment, up to eligible Exporter’s Retention Quota (ERQ) portion may be credited at the options of beneficiaries in foreign currency unit of the card, the remainder mandatorily in local currency unit after conversion at prevailing exchange rate,” BB instructed ADs through the circular.
The balance held in foreign currency unit of the card as ERQ is usable for payment, through usual banking channel, on international current account transactions for bonafide business expenses including legitimate expenses for personal purposes, the circular added.
The circular also said, “The cards may be used for permissible online transactions from Bangladesh. Outward remittances from foreign currency balance are subject to fulfillment of taxes payment obligations, if any.”
Inward receipt exceeding USD 10,000 or equivalent is subject to declaration on Form C (ICT), the circular added.
The circular also said ADs shall report the transactions to Bangladesh Bank in relevant statement or schedule and online reporting system mentioning appropriate code relevant to ICT or computer services.
