Norms for repatriation of payment for services:
As per the requirements set forth by the company/ firm/ Institutions registered in Nepal and entered in agreement with the service agencies from abroad shall avail the foreign currency exchange facilities, pursuant to Section 12 of the Foreign Exchange (Regulation) Act, 2019 (amended) (FERA) and Section 63 Nepal Rastra Bank Act, 2058 has issued the Circular No. 11/2080 dated January 06, 2024, and it shall be applicable to the Nepal Rastra Bank, Banking and Financial Institutions, Provincial offices as well as Class “A” and Class “B” licensed Banking institutions:
|
S.N. |
Monetary Threshold |
Authorizing Entity |
Documents |
|
1. |
Up to USD 5000 |
Approval is not required. |
a.Company/ Firm Registration Certificate and PAN
b.Tax clearance certificate or Tax details submitted.
c.Evidence of tax filing, including advance tax deposited for the services (TDS)
d.Latest Audit Report
e.Bill of Import of services
f.In case of import of services of contractual nature, the certified agreement entered by the parties.
g.Copy of minutes of the meeting of the board of directors (such other corporate decision) of the remitting entity containing (a) details of the services provided by the foreign entity under the service agreement and agreeing to obtain foreign exchange for the payment of the same, and (b) decision to take responsibility in case of misuse of foreign exchange;
h.Documents evidencing the payments made in foreign currency.
i.If the amount has been received from the employer, documents and bank statements confirming the amount.
j.Recommendation of the regulatory body (except in point a).
|
|
2 |
More than USD 5000 and up to USD 12000 |
·Regulatory Body
|
In addition to the above, the approval/ recommendation from the regulatory body of the Company/ Firm registered In Nepal shall also be obtained and the repatriation shall be made by the Commercial Bank. |
|
3 |
More than USD 12000 |
·Central Bank and
·Regulatory Body
|
In case of the absence of regulatory body, the central banks approval shall be mandatorily required for repatriating the amount of USD 5000 or above. |
|
4 |
USD 50000 or more (In absence of the regulatory body) |
Central Bank (prior approval required) |
All the documents from Point (a) to (i) shall be attached. In addition to that the Department of Industry (DOI) or the registrar of company (ROC) shall provide the relevant information as required by the central bank. |
Foreign exchange facilities to the Airlines Service Operators:
|
S.no. |
Monetary Threshold |
Authorizing entity |
Documents |
|
1 |
USD 100000 or more or INR 100000 |
Regulatory Body- Civil Aviation Authority of Nepal (CAAN). |
a.Company/ Firm Registration Certificate and PAN.
b.Tax clearance certificate or Tax details submitted.
c.Latest Audit Report
d.In case of import of services of contractual nature, the certified agreement entered by the parties.
e.Copy of minutes of the meeting of the board of directors (such other corporate decision) of the remitting entity containing (a) details of the services provided by the foreign entity under the service agreement and agreeing to obtain foreign exchange for the payment of the same, and (b) decision to take responsibility in case of misuse of foreign exchange
f.Documents confirming the completion of work.
g.Approval/ Recommendation of the regulatory body.
|
Note: Notwithstanding anything explained above; for the purpose of receiving technical training (including pilot training) for the technical staff of the Nepal Air Servicing Operating Organization, the limits above shall not be applicable for the payment in exchangeable foreign currency and such facility shall be provided by the Rastriya Banijya Bank Ltd.
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