/ सम्पति फिर्ता प्रावधान

सम्पति फिर्ता प्रावधान

अध्यावधिक मिति २०७८ बैशाख ९ गते बिहीबार

As per the Foreign Investment and Technology Transfer Act, 1992, a foreign investor making investment in foreign currency shall be entitled to repatriate the following amounts outside the Nepal:

  • a) The amount received by the sale of the share of foreign investment as a whole or any part thereof,
  • b) The amount received as profit or dividend from foreign investment,
  • c) The amount received as the payment of principal and interest on any foreign loan.
  • d) The foreign investor or a foreign technology supplier is also entitled to repatriate the amount received under the agreement for the technology transfer in such currency as set forth in the concerned agreement as approved by the DOI.

Foreign national, working in any industry with prior approval of the Department of Labour and who is from a country where convertible foreign currency is in circulation, may repatriate his/her salaries, allowances, emoluments etc. in convertible foreign currency in an amount not exceeding seventy five percent of such salaries, allowances and emoluments.

Required Documents:

Repatriation of Sales of Shares

For the repatriation of the sale of shares of the foreign investor, he/she or the concerned company must apply to the Department of Industry for recommendation to the central bank with the following documents:

  • a) Proof of investment made and number of shares owned, (the proof of investment could be a certificate from the commercial bank through which the investment was brought into Nepal.)
  • b) Letter from the company stating the completion of the transfer of the related shares duly certified by the Company Registrar's Office or such competent body.
  • c) Prior approval of DOI, if the share was transferred to any foreign national.
  • d) Tax clearance certificate.
  • e) Custom declaration form and the approval letter if the investment was made in the form of plant, machinery and equipment.
  • f) Copy of the Board of Director's resolution.

Repatriation of Dividend

Any foreign investor, wishing to repatriate his dividend from his investment as per the FITTA 1992 has to obtain a recommendation from the DOI. The foreign investor or the company has to apply to the DOI with the following documents:

  • a) Documentary proof of investment made which is issued by the commercial bank. This document is needed only for the first time and again only when further investment is made by the investor,
  • b) Custom declaration certificate of the import of plant machinery and equipment if the investment by the foreign investor has been made in the form of capital equipment,
  • c) Auditor's report including balance sheet and profit and loss account,
  • d) Tax clearance certificate.
  • e) Proof of dividend declaration.

Repatriation of Loan and Interest

The industrial unit with foreign loan has to apply to the DOI for sending out the principal and interest on foreign loan obtained with the approval of DOI along with the following documents:

  • a) Certificate from the commercial bank regarding the transfer of the loan amount into Nepal,
  • b) Custom declaration certificate and invoice of the plant machinery if the loan was obtained in the form of machinery,
  • c) Letter of approval of the loan agreement,
  • d) Tax clearance certificate.

Note : Income tax on interest on foreign loan should be deducted at source as per prevailing law and deposited at the Tax Office.

Repatriation of Technology Transfer Fees:

The industrial unit with approved technology transfer agreement, trademark license agreement, management agreement, technical assistance agreement can apply to the DOI for the transfer of fees as per the agreement. The company has to submit the calculation of the amount due to the foreign technology supplier certified by the auditor along with the certificate of payment of income tax on royalty as per the prevailing tax rate.

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