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NRB Circular on Repatriation of Salary of Expatriate

May 12, 2017

1.      Nepal Rastra Bank (NRB) has issued a circular on September 08, 2015 (2073-05-23) relating to foreign exchange facility of foreign expiates working in Nepal ("Expatriates") with various companies and organizations to repatriate their income ("Repatriation Circular"). The Repatriation Circular authorized the Commercial Banks and Development Banks at national level (“Banks”) for providing such exchange facilities subject to the conditions set out in the Repatriation Circular.

 

2.      The Banks can directly provide the exchange facility to Expatriates to repatriate their salary and benefits. The Expatriates can repatriate up to 75 % their salary and benefits after tax to their own country. They can repatriate the entire amount of provident fund or retirement fund after tax. However, the repatriation facility is subject to the amount restriction.

 

3.       In accordance with the Repatriation Circular the Expatriates are allowed to repatriate USD 3,000 per month or USD 36,000 in a year. The restriction on amount does not apply to the Indian nationals to repatriate their salary in Indian Currency.

 

4.      The Repatriation Circular does not deal with the amount exceeding the ceiling. There has been no clarity as to the repatriation of the additional amount. Specific approval of NRB may be required for the Expatriates to repatriate the additional amount.  

 

5.      The Repatriation Circular specifies the documents required for such exchange facilities. The document requirement list varies for Indian nationals and other foreign foreign nationals. The foreign nationals other than Indian nationals are required to submit: (a) application of the concerned employee, (b) recommendation letter of the employer firm or organization, (c) work permit issued by the Department of Labor, (d) contract/appointment letter and Identity Card of an employee, (e) receipt of payment of employment tax, (f) evidence regarding validity period of the visa.

 

6.      The Indian nationals can repatriate their income in Indian currency on the submission of the following documents (a) application from the Expatriates, (b) recommendation from the employer, (c) employment letter/contract/identity, and (d) receipt of the payment of employment tax. 

Disclaimer: This Pioneer Law Briefing may necessarily deal with every important aspects if the subject matter. This Briefing is intended for general information only and not to be construed as legal or other advice.

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