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Cancellation of Work Permits for Foreign Nationals in Bangladesh

Table of Contents

When a foreign national’s employment in Bangladesh ceases, whether due to contract completion, resignation, termination, or transfer, it is legally mandatory to formally cancel their existing work permit. Failure to do so can result in penalties for the employer and potential complications for the foreign national regarding future visas or employment in Bangladesh.

The cancellation process varies slightly depending on the authority that initially issued the work permit:

  1. Bangladesh Investment Development Authority (BIDA): For permits issued to employees in private sector companies, branch offices, or liaison offices outside EPZs.
  2. Bangladesh Export Processing Zones Authority (BEPZA): For permits issued to employees within EPZs.
  3. NGO Affairs Bureau (NGOAB): For permits issued to employees of NGOs.

This guide primarily details the cancellation process managed by BIDA.

Work Permit Cancellation Process (BIDA)
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The sponsoring company (employer) is responsible for initiating and completing the work permit cancellation process through BIDA’s online portal. A crucial prerequisite is obtaining the final tax clearance for the departing foreign national.

Steps for Cancellation:
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  1. Obtain NBR Tax Clearance: The first and most critical step is to settle all outstanding income tax liabilities of the foreign national with the National Board of Revenue (NBR) and obtain an official Income Tax Clearance Certificate. This certificate is mandatory for the cancellation application.
  2. Gather Other Required Documents: Once tax clearance is secured, collect the remaining necessary documentation (see list below).
  3. Prepare Application Letter: Draft a formal application letter addressed to BIDA requesting the cancellation of the specific work permit. This letter should state the reason for cancellation (e.g., end of contract, resignation), the effective date, and confirm that tax clearance has been obtained.
  4. Submit Online Application: Log in to the BIDA online service portal, navigate to the work permit cancellation section, fill in the required information, and upload scanned copies of the NBR Tax Clearance Certificate and all other necessary documents.
  5. BIDA Review: BIDA officials will review the submitted application and documents, paying close attention to the tax clearance certificate. They may raise queries if information is missing or unclear.
  6. Issuance of Cancellation Letter: Upon satisfactory review and confirmation of tax clearance, BIDA will issue an official work permit cancellation letter or order.
  7. Inform Relevant Parties: The employer should provide a copy of the cancellation letter to the foreign national and retain a copy for their records.

Documents Typically Required for BIDA Cancellation:
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  • Up-to-date Income Tax Clearance Certificate for the foreign national from NBR (Mandatory Prerequisite).
  • Formal application letter from the employer requesting cancellation, printed on the company letterhead, attested by the authorised signatory (e.g., MD, CEO, Country Manager), and mentioning the obtained tax clearance.
  • Copy of the original Work Permit issued by BIDA.
  • Copy of the foreign national’s passport (relevant pages showing identity and visa/arrival stamps).
  • Copy of the employment contract and release letter/resignation acceptance letter/termination letter.
  • Board Resolution of the company authorising the cancellation (if applicable, particularly for senior positions).
  • Any other documents specifically requested by BIDA.

Note: Ensure all copies are clear and attested by the company’s authorised representative.

Cancellation Process for BEPZA and NGOAB Permits
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While the principle of cancellation remains the same, the specific procedures and required documents for work permits issued by BEPZA and the NGOAB may differ.

  • BEPZA: Employers within Export Processing Zones must follow the cancellation procedures outlined by BEPZA, typically involving submission through their specific channels or portals.
  • NGOAB: NGOs must apply for cancellation through the NGO Affairs Bureau, adhering to their specific requirements, which often involve project-related clearances.

Companies and NGOs operating under BEPZA or NGOAB should consult the respective authority directly for detailed cancellation guidelines.

Importance of Timely Cancellation
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Prompt cancellation of the work permit upon cessation of employment is crucial for compliance. It formally concludes the employer’s sponsorship responsibility and ensures the foreign national’s departure or transition to another visa status (if applicable) is properly recorded.

Key Contact

Navigating the work permit cancellation process requires careful adherence to regulatory requirements. For professional assistance with cancelling work permits for foreign nationals in Bangladesh, please contact: