Expatriates do not pay any tax on remittances sent to the country: NBR
Banglapress Online: National Board of Revenue (NBR) chairman Mosharraf Hossain Bhuiyan said no VAT or tax was imposed in remittance sent by expatriates. This information was given to the media on Wednesday.
The NBR chairman said, “The propaganda that the VAT is being levied on the remittance sent by expatriates in social media including Facebook, is not correct.”
NBR senior information officer Syed A Muamen said, “The rumor of VAT or taxation on remittance sent by expats to social media, including Facebook, is rumor. For this reason, the statement of the National Board of Revenue is not to be confused with the propaganda of social media.
In the meantime, Syed Mumin sent a press release in the media. It has been mentioned in the circular that in the budget of the fiscal year 2017-19, the price added tax (VAT) or VAT on foreign remittances is being circulated in the social media. This is totally false and rumor. The National Board of Revenue (NBR) thinks that this campaign can be run as a means of sending foreign currency through Hundi, by blocking the country’s legitimate remittance flow.
It is further stated in the circular that value added tax is imposed on supply of goods or services. Foreign exchange comes in exchange for the expatriates of Bangladesh who provide services through strict labor outside the country. This entire program is considered as export of services under sub-section 2 (A) of Section 3 of Value Added Tax Act 1991. Therefore, the export of VAT is inexplicable. This means that no VAT is applicable on this sector regardless of remittance limit. So expatriates can send any amount of foreign currency or remittance through valid banking channels.
It has been mentioned in the notice that sending foreign currency or remittance through illegal channels or Hundi can not play a role in the national economy. So everyone is requested to refrain from sending remittances through Hundi. The National Board of Revenue is always careful about the prevention of hundi or money laundering.