Foreign Investment and Technology Transfer Act 2075

Chapter-3 Approval and Repatriation of Foreign Investment

Section 20: Repatriation of Investment and Earnings
1) A foreign investor may, if it so wishes, repatriate its investment from Nepal by selling wholly or partly of the shares or industry having its investment in accordance with the prevailing Nepal law after paying all such taxes as may be leviable in accordance with the prevailing Nepal law.
2) A foreign investor may repatriate the following amount in the same foreign currency in which the investment has been made or other convertible foreign currency with the approval of the Nepal Rastra Bank tax-related after paying the tax related liabilities under the prevailing law:
(a) Amount received from the sale of shares with foreign investment,
(b) Amount of profit or dividend received from foreign investment,
(c) In the case of liquidation or winding up of the industry or company, the amount remaining after paying all liabilities following the liquidation or winding up,
(d) Amount of royalty received under the technology transfer agreement,
Provided, however, that in the case of the royalty or fee for the use of a trademark under the transfer of technology in a liquor industry other than a liquor industry exporting cent percent of liquor, the amount of such royalty shall not exceed five percent of the total selling price, as prescribed, excluding the prevailing tax.
(e) Amount of lease rent under the lease investment,
(f) Amount received as damages or compensation, if any, received from the final settlement of a law suit, arbitration or any other legal process in Nepal,
(g) Amount that can be repatriated in accordance with the prevailing law.
3) In repatriating amount in a convertible foreign currency in accordance with sub-section (1) or (2), it shall be repatriated by making conversion at the prevailing exchange rate.
4) Where any foreign investor has lent a loan to any industry or company against the pledge or mortgage of a movable or immovable property situated in Nepal and the movable or immovable property pledged or mortgaged required to be auctioned or forfeited because of non-repayment of the principal or interest of such a loan, the institution lending such a loan may repatriate the principal and interest of the loan by auction of such property as if it were a bank or financial institution of Nepal.
5) In the case of termination of a lease agreement because of non-payment in accordance with the lease agreement or breach of its terms, the foreign investor may repatriate its investment and the property invested in the lease.
6)  A foreign investor who wishes to repatriate the foreign investment or amount earned therefrom in accordance with this Section shall make an application, in the form as prescribed, to the foreign investment approving body for approval to that effect.
Provided that such an application shall be made to the Single Stop Service Centre if the Government of Nepal, by notification in the Nepal Gazette, grants to the Single Stop Service Centre the power to the body to give approval relating to the repatriation of foreign investment or the amount earned therefrom.
7) If, in examining an application received pursuant to sub-section (6), it appears that the foreign investor has fulfilled the terms and liabilities referred to in this Act, prevailing law and the agreement made in relation to foreign investment, the foreign investment approving body shall give the approval to repatriate the foreign investment or amount earned therefrom not later than fifteen days of the date of receipt of the application.
8) After obtaining the approval pursuant to sub-section (7), the foreign investor may make an application to the Nepal Rastra Bank for the foreign currency exchange facility.
9) The Nepal Rastra Bank shall, upon receipt of an application in accordance with sub-section (8), provide the exchange facility to the foreign investor for the repatriation of foreign investment.
10) Where the amount of investment is to be repatriated by selling wholly or partly any industry with foreign investment or upon revocation of the registration of the industry or company for any reason, repatriation of the remaining amount may be made only after the payment or settlement of all liabilities including the tax payable by such industry.
11) Notwithstanding anything contained elsewhere in this Section, a foreign investor may, in repatriating foreign investment made in any industry in accordance with this Act or profit earned therefrom, repatriate such investment or profit only to the extent of the ratio of the portion of its investment in the concerned company.
12) If any foreign investor is not satisfied with a decision made by the body giving such approval in the course of repatriation of the amount of its investment, the investor may make an application to the Ministry. The Ministry shall make a decision on such an application within thirty working days.