DHAKA, May 21 (Xinhua) -- Bangladesh's central bank has removed a key barrier that previously delayed foreign portfolio investors from reinvesting their sale proceeds.
On Wednesday, the Bangladesh Bank (BB) issued a circular ending the requirement for overseas investors to submit a tax certificate after every sale order.
Instead, they will now need to provide such a certificate only before repatriating funds from the country.
This change aligns Bangladesh's practice with that of other markets.
Foreign investors' sale proceeds will be directly credited to their Non-Resident Investors Taka Accounts (NITA), while authorized dealers will ensure applicable capital gains taxes are deducted before repatriation.
The central bank stated that the move aims at streamlining investment operations through NITA, reducing procedural delays and compliance costs, while still ensuring taxes are collected before funds leave the country. Enditem