Russel and Partners, we take pride in offering comprehensive legal support to our clients, particularly in the complex domain of immigration-related services in Bangladesh. Our expertise spans across work permits, visa extensions, expatriate taxation, and a wide array of immigration-related legal matters. In this blog, we delve into the intricacies of these areas, shedding light on the relevant laws and procedures to ensure a smooth experience for expatriates and employers alike.

Work Permits in Bangladesh: Bangladesh’s primary legislation governing work permits is the Bangladesh Investment Development Authority (BIDA) Act, 2016. Under this Act, BIDA is the principal authority responsible for issuing work permits to foreign nationals working in Bangladesh. In Bangladesh, different government authorities issue work visas depending on the sector or type of work jurisdiction. Here’s an elaboration on each authority responsible for issuing work visas:

1. Bangladesh Investment Development Authority (BIDA):

• Targeted Sector: Non-export processing industries and general foreign investment.
• Jurisdiction: BIDA is responsible for processing work permits for expatriates working in sectors outside specialized economic zones. This includes industries related to manufacturing, services, and other commercial ventures not categorized under special zones or sectors.

1.1. Work Visa Process:

• Foreign nationals employed in BIDA-registered businesses must apply for a work permit through BIDA.
• The company employing the expatriate must submit a formal application, including necessary documentation (employment contracts, proof of need for the foreign worker, etc.).
• Upon approval, BIDA facilitates the issuance of the relevant work visa.

1.2. BIDA provides two primary categories of work permits: Commercial work permits and industrial

work permits. Here’s a detailed explanation of each:

• Commercial Work Permit: A commercial work permit is typically issued to foreign nationals who will be engaged in non-industrial sectors such as trade, services, and consultancy. This permit is designed for individuals working in sectors where there is a business focus rather than manufacturing or production.

Key Features:

• Applicable Sectors: It covers employment in sectors like finance, marketing, IT services, consultancy, retail, and other service-related businesses.
• Eligibility: Employers need to show that the foreign national has the expertise or qualifications that are not readily available in Bangladesh.
• Approval Process: The employer or company must provide BIDA with proof of business registration, financial standing, and justification for hiring a foreign national.
• Duration: Usually granted for an initial period of one year, with the option for extension.
• Renewal: The permit can be renewed upon proof of continued need for the foreign national’s expertise.
• Industrial Work Permit: An industrial work permit is issued to foreign nationals who will be employed in industrial or manufacturing sectors. These permits are usually tied to specific projects or industrial activities, such as production, engineering, or other technical roles in factories or industrial setups.

Key Features:

• Applicable Sectors: This permit covers sectors like manufacturing, construction, engineering, textiles, shipbuilding, pharmaceuticals, and large-scale industrial operations.
• Eligibility: The employer must demonstrate that the foreign worker has specialized skills or technical expertise that is not easily found locally. The need for expatriates in technical or supervisory roles is common.
• Approval Process: Companies seeking to hire foreign nationals must provide documentation of the company’s registration, investment details, and justification for why the foreign worker is necessary. BIDA may require proof of the company’s contribution to industrial growth or investment in Bangladesh.
• Duration: Typically issued for a period of one year but can vary based on the nature of the industrial project.
• Renewal: Extensions can be requested based on continued project requirements and the foreign national’s role.
• Common Requirements for Both Permits:

1. Documentation: Passport copies, employment contracts, business registration documents, and proof of investment in Bangladesh.
2. Justification: Employers must demonstrate the need for foreign expertise, and in most cases, BIDA encourages the transfer of skills to local employees over time.
3. Tax Clearance: Expatriates may be required to show tax clearance or that their employer has fulfilled their tax obligations.

2. Bangladesh Export Processing Zones Authority (BEPZA):

• Targeted Sector: Export Processing Zones (EPZs).
• Jurisdiction: BEPZA is responsible for issuing work permits to foreign nationals employed in industries located within Export Processing Zones. EPZs are specialized areas focused on export-oriented manufacturing and services.

2.1. Work Visa Process:

• Companies operating in EPZs need to apply to BEPZA to hire foreign employees.
• The application should include the employment contract, educational qualifications, and justification for hiring foreign personnel.
• After approval by BEPZA, the foreign national can apply for the work visa.

3. Bangladesh Economic Zones Authority (BEZA):

• Targeted Sector: Economic Zones.
• Jurisdiction: BEZA handles the issuance of work permits for expatriates working in businesses set up within Economic Zones. These zones are designated for a variety of industries that contribute to economic development.

3.1. Work Visa Process:

• Companies in BEZA Economic Zones submit applications to BEZA for foreign hires.
• Required documents include employment contracts, business registration, and justification for expatriate hiring.
• Once approved by BEZA, the foreign worker is eligible to apply for a visa.

4. NGO Affairs Bureau:

• Targeted Sector: Non-Governmental Organizations (NGOs).
• Jurisdiction: The NGO Affairs Bureau oversees work permits for expatriates employed in international and local NGOs operating in Bangladesh.

4.4. Work Visa Process:

• NGOs must apply to the NGO Affairs Bureau for approval before hiring foreign employees.
• The NGO must demonstrate the need for hiring expatriates by providing documentation such as the employment contract, NGO registration, and project details.
• Upon approval, the work visa application is processed.

5. Department of Textiles:

• Targeted Sector: Textile and Garment Industry.
• Jurisdiction: The Department of Textiles is responsible for issuing work permits for expatriates in the textile and garments sector, one of Bangladesh’s largest industries.

5.1. Work Visa Process:

• Companies in the textile industry must apply to the Department of Textiles to hire foreign nationals.
• The application must include the employment contract, business credentials, and other necessary documents related to the expatriate’s qualifications.
• Once approved, the foreign employee can apply for a visa based on the permit granted by the Department of Textiles.

6.General Visa Process: After the respective authority approves the work permit application, the expatriate can apply for a visa at the Bangladesh High Commission or Embassy in their home country. The necessary documents generally include the work permit, an invitation letter from the employer, and other personal details.

Procedure:

1. Application Submission: Employers must apply for work permits on behalf of foreign employees to BIDA. The application must include details about the job, the foreign national’s qualifications, the necessity of hiring a foreigner over a Bangladeshi citizen, and other relevant requirements as per law.
2. Processing Time:

• E-Visa Recommendation is an endorsement or official recommendation letter issued by the relevant Bangladeshi authorities that allows foreign nationals to apply for an electronic visa (e-visa). This recommendation is typically issued after certain documentation and requirements are met, such as approval from government bodies or specific organizations in Bangladesh.

1. Normal Processing Time: It usually takes around 7-10 working days for the E-Visa recommendation to be processed after submission of the required documents. However, this time frame may vary depending on the workload of the immigration department or specific circumstances of the applicant.
2. Expedited Processing: For urgent cases, some applications may be processed faster, especially if handled through diplomatic or official channels. It’s essential to check if priority processing is available and the fees involved.
3. Required Documents: These may include a valid passport, an invitation letter from the Bangladeshi entity, government approvals (if required), and other related documents like financial statements or proof of employment in Bangladesh.
4. Obtaining a Work Permit is a necessary step for foreigners who plan to work in Bangladesh. The work permit is usually issued by the Bangladesh Investment Development Authority (BIDA) or the relevant regulatory bodies based on the nature of the job and sector.
5. Normal Processing Time: The average processing time for a work permit is 15-30 working days, assuming all required documentation is correctly submitted. This process may involve multiple steps, such as obtaining clearance from different government departments, employer verification, and local approval.
6. Required Documents:

• Application form for the work permit.
• Valid passport and visa.
• Employment contract or appointment letter.
• Trade license or business documents of the employing company.
• Employer’s letter to BIDA or respective authority.
• Proof of qualifications and experience.

7. Renewals: Renewing a work permit also requires a similar time frame (15-30 working days), and the process should ideally start before the current permit expires.
8. Challenges & Delays: Any incomplete submission, errors in documentation, or further scrutiny by authorities may delay the processing time.

Visa Extensions: Visa extensions for foreign nationals are primarily governed by the Immigration Act of 1922, and the rules made thereunder as amendment from time to time. The Directorate General of Immigration & Passports (DGIP) is the authority responsible for processing visa extensions.

1. Types of Visas:
   • Business Visa (B Visa): For foreign nationals engaged in business activities in Bangladesh.
   • Employment Visa (E Visa): For foreigners employed in Bangladesh, it is often linked to the validity of their work permit.
   • Investor Visa (PI Visa): Issued to foreign investors and can be extended based on investment and business activities in Bangladesh.
   • Family Visa (FE): The dependent family member will be granted an FE visa to stay with the principal work permit holder. The family visa will also be extended until the work permit expires. The family visa must be applied for to the immigration authority, and an investigation must be performed before extending the FE visa. Generally, it takes three weeks to process the family visa after submitting the complete application.
2. VOA-Visa on Arrival Permission & Conversion:

• Visa on Arrival (VOA) in Bangladesh:

1. Eligibility: Available for nationals from countries without Bangladeshi diplomatic missions or for business, investment, or government purposes.
2. Processing Time: Issued at the airport within 30 minutes to 1 hour.
3. Required Documents: Valid passport, return ticket, proof of funds, invitation letter (for business/investment).

• Visa Conversion in Bangladesh:

1. Purpose: For those on a VOA needing to extend their stay or switch to a long-term visa (e.g., work permit).
2. Processing Authority: Department of Immigration and Passports (DIP).
3. Processing Time: 7-14 working days.
4. Required Documents: Application form, passport, VOA, and relevant documents (e.g., employment, business).

3. Procedure for obtaining the Employment visa extension:
   • Application Submission: Visa extension applications must be submitted to DGIP with relevant documents, including a valid work permit, tax clearance certificate, and a letter from the employer.
   • Processing Time: The extension process usually takes 7-10 working days.
   • Validity: Extensions are typically granted in line with the work permit’s validity.

Key Considerations: Timely application for visa extensions is crucial to avoid penalties or legal complications. It’s advisable to apply at least one month before the visa’s expiration.

Expatriate Taxation: The taxation of expatriates in Bangladesh is governed by the Income Tax Ordinance, 1984, which has undergone several updates, including those in 2023. Here is a summary of the updated tax regulations for expatriates:

1. Tax Residency:
   • A foreign national becomes a tax resident in Bangladesh if they reside for 182 days or more in any income year or for 90 days or more in the income year and 365 days or more over the preceding four years.
   • Residents are taxed on their worldwide income, while non-residents are taxed only on income earned or accrued in Bangladesh.
2. Income Subject to Tax:

• Expatriates are subject to tax on salary, allowances, benefits, bonuses, and any other income derived from Bangladesh, regardless of whether it is paid within or outside Bangladesh.
• Perquisites like housing, transport, and utilities provided by employers are taxable.

3. Tax Rates: The updated tax rates as of 2023 for residents and non-residents are as follows:
   • Resident expatriates are subject to progressive tax rates ranging from 0% to 30%, depending on their income level.
   • Non-resident expatriates are generally subject to a flat tax rate of 30% on income earned in Bangladesh.
4. Exemptions and Deductions:
   • Expatriates may avail deductions such as contributions to recognized provident funds, gratuity funds, and other savings schemes.
   • Certain allowances like per diems for business travel and specific employer-provided benefits may be exempt from taxation, subject to limits.
5. Double Taxation Agreements (DTAs):
   • Bangladesh has entered into DTAs with several countries to prevent double taxation. These treaties may provide relief for expatriates if income is taxed in both their home country and Bangladesh.
6. Withholding Tax:
   • Employers are required to withhold income tax from expatriates’ salaries and remit it to the National Board of Revenue (NBR) on a monthly basis.
   • The withholding tax is adjusted against the final tax liability when expatriates file their tax returns.
7. Mandatory Filing:
   • Expatriates must file their annual tax return with the NBR. The tax year runs from July 1st to June 30th, and returns are due by November 30th of each year.

These provisions reflect the 2023 updates to the Income Tax Ordinance, ensuring that expatriates working in Bangladesh comply with local tax laws while benefiting from applicable treaties and exemptions.

Conclusion:

Navigating the legal landscape of work permits, visa extensions, and expatriate taxation in Bangladesh requires a thorough understanding of the relevant laws and procedures. At Russel and Partners, we are committed to providing our clients with the legal expertise and support they need to ensure full compliance with Bangladesh’s immigration laws. Whether you are an expatriate seeking to work in Bangladesh or an employer looking to hire foreign talent, our team is here to guide you through every step.

For tailored legal advice and support, please get in touch with Russel and Partners. Our experienced legal team is ready to assist you with all your immigration-related needs in Bangladesh.

Best Regards,

Jannatul Ferdaush

Associate

Lawyer

LL.B. (Hons), American International University of Bangladesh