Simplified Procedure for Remittances by Star-Rated Hotel Businesses in Bangladesh

Local companies operating star-rated hotels in Bangladesh often seek approval from the BB for foreign remittances related to services that fall outside the guidelines provided by the BIDA. To support the hotel and tourism industry, the BB has decided to simplify the process for the approval of such remittances, which are essential to hotel operations. The required documents to apply and general instructions for compliance are described below.

Required documents for the application

• Draft copies of agreements or memorandum of understanding to be signed between the local hotel management and international service providers
• Documents proving the price competitiveness of the services
• Documents or statements justifying the unavoidable necessity of obtaining the services from abroad or showing that such services cannot be provided by local service providers
• Declaration from an external auditor to the effect that the intended services are outside the purview of BIDA’s guidelines
• Certificate from an external auditor regarding the tax deducted at source and value added tax, base of calculation of source tax applicable to such services and obligatory of Tax with reference to relevant provisions of tax laws, rules and regulations
• Report on the service provider’s creditworthiness and performance
• The local company’s Memorandum and Articles of Association
• The local company’s certificate of incorporation
• The local company’s Schedule X and Form-XII
• The local company’s updated trade license
• The local company’s updated TIN and BIN certificates
• The local company’s updated license/permission letter from the office of the Deputy Commissioner/Ministry of Civil Aviation and Tourism
• The local company’s latest audited financial statements with the Document Verification Code number
• The local company’s Credit Information Bureau report
• Declaration of revenue from and payments to abroad as per Annexure A of the circular
• Limited money changer license issued by the BB, if any

General instructions

• All documents must be attested to by the bank’s responsible officials.
• ADs are not authorized to execute remittances for agreements that are not registered with the BB or that deviate from registered agreements.
• ADs must carefully review the registration letter issued by the BB and the approved draft agreements to ensure compliance before processing any transactions.
• The guidelines in this circular apply to all new agreements, renewals, or amendments to existing agreements after the issuance of this circular.
• Existing agreements must be submitted by 31 January 2025.