Bangladesh government is offering an attractive package of incentives to foreign investors in its economic zones or special economic zones. Investors are welcome to take the advantage. Bangladesh Economic Zones Authority (BEZA) aims to establish economic zones or special economic zones in all potential areas in Bangladesh including backward and underdeveloped regions with a view to encouraging rapid economic development through increase and diversification of industry, employment, production and export.
BEZA’s mission is to persistently create value for the investors by establishing attractive investment facilities in the economic zones through One-Stop service and competitive incentive packages. BEZA is mandated to establish, license, operate, manage and control economic zones in Bangladesh. Bangladesh government hope these special economic zones (SEZs) attracting high levels of foreign investment from high performing Asian economies like China and Japan.
TAX HOLIDAY: For all Economic Zones Income Tax Holiday (ITH)-
1st and 2nd year 100%, 3rd year 80%, 4th 70%, 5th 60%,6th 50%, 7th 40%, 8th 30%, 9th 20% and 10th year 10%.
CUSTOM DUTY: Duty free import of raw materials, construction materials, capital machineries, finished goods.
INCOME TAX - OTHERS: Exemption from dividend tax (After tax holiday over)
REPATRIATION: Full repatriation of capital and dividend.
FREE FLOW FDI: No ceiling of FDI.
BACKWARD LINKAGE: 100% backward linkage raw-materials and accessories to sell for export oriented industries( EOI) in Domestic Tariff Area( DTA).
LOCAL SALE: 20% sale of finished product to DTA (From Export Processing Area –EPA).
SUB- CONTRACTING: Sub-contracting with DTA allowed.
STAMP DUTY: 50% exemption of stamp duty and registration fees for registration of leasehold land/ factory space.
VAT: 80% exemption of VAT on all utility services consumed inside the zone.
CUSTOM DUTY: Duty exemption on Export.
CD ON VEHICLE: Exemption of CD for import of 2 vehicles within 1st 5 years for foreign investors ( for one time).
DOUBLE TAXATION:Exemption of double taxation subject to Double taxation agreement.
IT INDIVIDUAL:50% Rebate of income tax on salary income of expatriates for 5 years
CUSTOM BOND:Consider EZ as custom bonded area.
FOREIGN EXCHANGE:FC loan availability (To ease business activity).
FOREIGN EXCHANGE:FC Account for Non-Resident.
FOREIGN EXCHANGE:FC Account for both local and joint venture industry.
JOINT VENTURE:Joint venture allowed
ROYALTIES:Royalty, technical fees will be exempted from income tax.
CAPITAL GAINS:Tax exemption on capital gain.
SHARE TRANSFER:Share transfer allowed.
WORK PERMITS: Work permits – No restrictions on issuance of work permits on project related foreign nationals and employees but limited up to 5% of total employees.
RE- INVESTMENT: Re-investment of remittable dividend to be treated as new foreign investment.
RESIDENT: Resident visa for investment of US$ 75000 or more.
CITIZENSHIP: Citizenship for investment of US$ 500000 or more
AbbreviationsEZ Economic Zone SEZ Special Economic Zone