List of Indicative Viable Industrial Projects in the SCI

Fiscal Incentives

• Tax holiday is allowed to industries of Dhaka and Chittagong division for 5 years,
• Other divisions and Chittagong Hilltracts for 7 years
• Acceletrated depreciation in lieu of tax holiday is allowed at the rate of 80% of the actual cost of machinery
• Import duty at the rate of 7.5% advalorem on capital machinery is charged
• No import duty on capital machinery is charged in case of 100% export oriented industry However 7.5% is secured in the form of bank guarantee which is refundable.
• For least developed area 2.5% import duty is charged and additional 5% is secured in the form of bank guarantee which is refundable in case of export oriented industry.
• Vat is not payble for imported capital machinery in case of export oriented industries.
• Special incentives are provided to encourage non-resident Bangladeshis for importing mechinery in the country.

Other Incentives

• Tax exemption on royalties, technical know-how fees recieved by any Foreign collaborator, firm, company or an expert.
• Tax exemption on the interest on foreign loans under certain condition.
• Avoidance of double taxation in case of foreign investors on the basis of bilateral agreements.
• Exemption of income tax up to 3 years for the foreign technicians employed in industries specified in the relevant schedule of income tax ordinance.
• Tax exemption on income of the private sector power Generation company for 15 years from the date of commercial production.
• Facilities for repatriation of invested capital, profit & dividend
• Six months multiple entry visa for the investors.
• Re-investment of repatriable dividend treated as new investment.
• Citizenship by investing a minimum of US$ 5,00,000 or by transferring US$ 10,00,000 to any recognized financial institution (non repatriable).
• Permanent residentship by investing a minimum of US$ 75,000 (non repatriable).
• Tax exemption on dividend income of non-resident shareholders during tax exemption period of an industry set up in export processing zone and also after the expire of tax exemption period if the dividend is re-invested in the same project.
• Exemption of tax on income from industrial undertaking set up in export processing zone for 10 years from the date of commercial production.
• Tax exemption on capital gains from the transfer of shares of public limited companies listed with a stock exchange.

Investment outside industrial estates also enjoys the similar incentives

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Fiscal Incentives

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Shilpa Palli

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