Bangladesh Bank (BB) has increased the remit limit of Information Technology (IT) expenses up to $500 to facilitate freelancers or developers for meeting bona fide needs. “It has been decided to enhance the remit limit of IT expenses for the freelancers or developers to $500 from $300 to facilitate freelancers or developers for meeting bona fide needs,” said a BB circular issued on Monday, reports BSS.
Earlier, Authorized Dealers (ADs) were allowed to remit IT expenses up to $300 in a calendar year on behalf of individual developers or freelancers of mobile apps and games having acknowledgements or training or boot camps or hackathons or course participation certificates on mobile application development through virtual (debit or credit or pre-paid) cards.
As per the BB circular, to bring wider scope for cross border transactions by alternative channel, it has been decided that ADs may release IT expenses within permissible limit on behalf of individual developers or freelancers through their notional accounts (digital wallet) maintained with Online Payment Gateway Service Providers (OPGSPs).
In this context, ADs shall arrange required amount in their nostro accounts for settlement of payment through notional accounts of OPGSPs on post-funding basis. For execution of online instructions from individual developers or freelancers, ADs shall have secure and suitable online transaction platform, and arrangement for documentary formalities before disbursement of funds.
In case of refund due to cancellation of the relative transactions for valid reasons, ADs shall, on receipt of amount from OPGSPs, refund the same to remitters. Usual formalities required for outward remittances need to be observed including usual reporting, deduction of applicable taxes and payment thereof.
Irrespective of above limit, developers or freelancers are permitted to remit their bona fide business expenses out of balances held in ERQ accounts through digital wallet.