
- By Gias Uddin CAP, ITP
- 0 Comments
- Fiscal Incentives, Information Technology
- Tags: 10% incentive for software exporters, Bangladesh Bank IT export policy, Bangladesh IT export subsidy, BASIS incentive process, Cash incentive Bangladesh ICT, export cash subsidy Bangladesh, export incentive documentation, hardware export benefits BD, ITES export benefits, Software export cash incentive
Cash Incentive for Export of Hardware, Software & ITES in Bangladesh
This initiative is part of the broader vision to boost foreign exchange earnings and strengthen the country’s digital economy under “Digital Bangladesh”.
Bangladesh’s ICT sector is rapidly growing, with tech entrepreneurs and software companies expanding their reach globally. To encourage and support this growth, the Government of Bangladesh provides cash incentives for the export of hardware, software, and IT-enabled services (ITES).
✅ What is a Cash Incentive?
A cash incentive is a direct financial reward from the government provided to exporters based on the value of their eligible exports. It aims to enhance competitiveness in the global market and encourage higher export volumes.
📦 Eligible Export Sectors
Exporters in the following categories are eligible for the cash incentive:
✅ Software Development
✅ IT-enabled Services (ITES) such as BPO, call centers, remote customer support, etc.
✅ Mobile Application Development
✅ Game Development
✅ Website Design and Development
✅ Embedded Systems & Hardware Solutions
✅ Cloud-based Solutions, SaaS
✅ Export of ICT Devices & Equipment (under specific conditions)
Current Incentive Rate
As of the most recent government circular:
- Cash Incentive Rate: 6% on the net FOB (Free On Board) value of the export proceeds. (for updated rate please read the latest Bangladesh Bank cash incentives circular)
- The rate is subject to periodic review and may vary depending on export volume and government policies.
Processing Time
- Submission Time: Within 180 days from the realization of export proceeds.
- Processing Time: Around 30–90 working days, depending on the bank and required verification.
- Delays may occur if documents are incomplete or discrepancies arise.
Processing Time
- Submission Time: Within 180 days from the realization of export proceeds.
- Processing Time: Around 30–90 working days, depending on the bank and required verification.
- Delays may occur if documents are incomplete or discrepancies arise.
📝 Required Documents for Application
To apply for the cash incentive, the following documents must be submitted through your Authorized Dealer (AD) bank:
- Application Form (as per Bangladesh Bank guidelines)
- Export Proceeds Realization Certificate from Authorized Dealer (AD) bank
- Commercial Invoice
- Form-C
- Packing List (for physical goods)
- Bill of Lading or Air Waybill (for physical goods)
- Customs Export Declaration-EXP Form (for physical goods)
- Copy of the Contract or Work Order
- Certificate from BASIS or BCS
- Undertaking Letter in Stamp
Auditor may also ask for following legal documents:
- TIN and VAT Registration Certificate
- Export Registration Certificate
- Trade License
- Audit Report or Bank Solvency Certificate
- Board Resolution (if applicable)
🏦 How to Apply for the Cash Incentive
Here’s a step-by-step guide:
Step 1: Export & Realize Proceeds
- Complete your software, ITES, or hardware export and receive the foreign currency through a banking channel.
Step 2: Collect Required Documents
- Gather all documentation including Export Proceeds Realization Certificate, invoices, form-c, shipping details, and contracts.
Step 3: Collect Certificate from BASIS or BCS
Submit a copy of above documents to trade association like BASIS or BCS to get Certificate in prescribed form.
Step 4: Apply Through Your Bank
After getting association’s certificate, submit the cash incentive application and documents to your authorized bank (the one through which the export proceeds were received) within 180 days from swift date.
Step 5: Verification & Certification by Auditor
The Auditor reviews and verifies all the submitted information. They may seek clarification or additional documents if needed. They may also physically visit your business location and verify your overall product or services, export process.
After successful verification, the Auditor will issue individual cash incentive certificate relating to your application.
Step 6: Disbursement
The bank then claims reimbursement from Bangladesh Bank. Bangladesh Bank usually reimburse the payment on timely basis.
🧾 Important Notes
- Companies must maintain proper documentation and declare their exports legally to qualify.
- Export payments must be received through official banking channels.
- Any false declaration or forged document can lead to disqualification and legal action.
- Government authorities like CAG may audit at any time.
The cash incentive program for ICT exports is a major boost for Bangladesh’s growing digital economy. With a reward on export proceeds, it creates financial motivation for entrepreneurs, startups, and tech companies to expand globally.
Whether you’re an established exporter or a new tech startup, understanding and utilizing this incentive can help you scale faster and invest in growth.