Legal Framework for Hi-Tech Investments
Under the Foreign Exchange Regulation Act, 1947, investors are granted full repatriation rights for profits and dividends, provided they comply with the reporting requirements of the Bangladesh Bank. Furthermore, the Income Tax Act, 2023 provides specific exemptions for developers and units operating within these designated zones.
| Incentive Type | Statutory Reference | Duration / Benefit |
|---|---|---|
| Corporate Income Tax (CIT) | Income Tax Act 2023, 6th Schedule | 100% exemption for first 7-10 years |
| Import Duty Exemption | Customs Act 1969, Section 19 | Exemption on capital machinery & construction materials |
| Dividend Tax | Income Tax Act 2023 | Exemption for 10 years |
| Stamp Duty | Stamp Act 1899 | Exemption on lease deed registration |
Operational Roadmap for Investors
- Incorporation: Formation of a private limited company under the Companies Act, 1994 with the RJSC.
- BHTPA Application: Submission of a detailed project profile and investment plan to the Bangladesh Hi-Tech Park Authority for 'Unit' status.
- Lease Agreement: Execution of the land or space lease agreement pursuant to the Hi-Tech Park Authority (Assignment of Land) Rules, 2015.
- Regulatory Clearances: Obtaining Trade License, TIN, BIN, and Environment Clearance Certificate (ECC) via the BHTPA One-Stop Service (OSS) portal.
- Foreign Exchange Setup: Opening of FC accounts and reporting of inward remittance under FE Circulars issued by Bangladesh Bank.
Consult Barrister Liton Sarkar
Ensure your technology investment complies with the latest statutory amendments and SROs.
Schedule Legal ScopingFrequently Asked Questions
What is the statutory basis for tax exemptions in Hi-Tech Parks?
Tax exemptions are primarily granted under the Sixth Schedule (Part A) of the Income Tax Act, 2023, which provides a sliding scale of exemptions for Hi-Tech Park developers and units for up to 10 years.
Can foreign employees in Hi-Tech Parks repatriate their salaries?
Yes, under the Foreign Exchange Regulation Act, 1947 and BHTPA guidelines, foreign employees are entitled to an exemption of 50% of their income tax for 3 years and can repatriate 75% of their salary.
Is there a minimum investment threshold for BHTPA units?
While the Bangladesh Hi-Tech Park Authority Act, 2010 does not specify a rigid minimum, the BHTPA evaluates the 'Technology Content' and 'Export Potential' of the project profile during the application process under the 2015 Rules.
◆ Related Statutory Guides & Practice Insights
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