A Tax Identification Number (TIN) is essential to make safe and trackable money transactions. It also turns you into a potential tax-paying citizen. Beyond that, you get the right to claim many government-provided conveniences. Banks and brands want their consumers to provide TIN numbers when opening an account or making a transaction. If you want to obtain a Tax Identification Number (TIN) in Bangladesh, this guide will be a great help.
What is a Tax Identification Number (TIN)?
A Tax Identification Number (TIN) is a 12-digit identification number. The Bangladesh Revenue Board (NBR) assigns this number to an individual or business upon request. The TIN allows the government to track records of tax payments, filings, and relevant money transactions of that individual or business.
Since 2023, the Bangladesh government has made it compulsory for every eligible citizen to register for a TIN certificate. Though the primary objective is to ensure tax returns from every eligible individual, the country is also awarding certain benefits in exchange.
Why Do You Need a TIN Certificate in Bangladesh?
Getting a TIN number is your responsibility as a concerned citizen. Also, it is like answering the country’s call to duty. But beyond turning you into a good tax-paying citizen, a TIN number will allow:
To File Income Tax: Income tax is only payable when you have an e-TIN or TIN number. So, it’s essential to get one the moment you cross the minimum eligibility threshold. It allows you to submit tax return online or offline.
To Register a Business: Businesses must register for an NBR TIN certificate to get their trades licensed.
To Get Involved with a Company: Companies often run partnership programs and sell shares. To get onboard with this program and buy shares, TIN certificates are a primary requirement.
To Get a Loan: If you have ever tried to get a loan from a bank, you must have been aware of the countless pages of documents you must submit. One of them is your TIN certificate.
To Purchase Real Estate: Providing the TIN certificate during the transaction of real estate comes with certain benefits. You get a discounted tax and can prevent fraud, like money laundering and tax evasion.
To Register Vehicles: BRTA paperwork for registering a vehicle, like a motorcycle or car, demands the TIN.
Who Needs a TIN in Bangladesh?
Many individuals often get confused thinking whether they should apply for a TIN certificate or not. Honestly, it’s not something to worry about. The process is easy and free of cost. So, if you are an adult according to the country’s law, it won’t hurt you to register for it.
Still, to clear your confusion, let’s learn for whom the TIN is necessary:
Eligible Individuals: Anyone with a basic annual income over BDT 3,50,000 (the minimum tax payable threshold)
Business Owners: To ensure legally protected and trackable transactions, business owners should get a TIN certificate under their companies’ names
Online Workers, or Freelancers: Professionals involved in freelance work or businesses can use a TIN certificate to demonstrate their identities.
Bank Clients: The banks may want their clients to provide a TIN for opening specific types of accounts and cards.
Documents Required for TIN Registration
NBR TIN registration requires only basic documents. Businesses or individuals, any interested party, have to submit:
Businesses
- A copy of the Trade License
- A copy of the Memorandum of Association (MOA) and Articles of Association (AOA)
- Bank solvency certificate
- Three copies of the photograph of the owner (If proprietary)
- Three copies of the photograph of the Managing Director (If the company)
- The company’s incorporation number
- The company’s incorporation date
- Authorized person’s name
Individuals
- A copy of the National Identification Number (If an individual)
- Three copies of a photograph of the person
- Mobile phone number
Steps to Obtain a TIN Certificate Online
Making your access to TIN certificate services effortless, the National Revenue Board (NBR) launched an online TIN registration system in 2013. Here is a detailed guide on how you can use the system:
Meeting Eligibility Criteria
For a certain class of people, like a jobholder, business owner, or freelance worker, the government has made the acquisition of a TIN certificate mandatory. In general, anyone above the minimum threshold to be an adult under the country’s law can get their tax identification number.
Visiting the e-TIN Portal
You can visit the official NBR portal for e-TIN registration https://secure.incometax.gov.bd/ anytime of the day. Registering through this portal:
- Allows you easy access to your TIN without contacting official staff
- Provides instant TIN acquisition
- Doesn’t require submission of a hard copy of any of the documents
Creating an Account
Once you get on the portal’s home page, you will find two login and sign-up options. As a new applicant, you must register on the portal first. The process will ask you for:
- Setting a user ID
- Setting a unique password
- Picking a security question and setting an answer; (Make it personal and private as the answer may be required for future login or password restoration)
- Your phone number
- Your email address
Filling up the Registration Form
Once signed up and logged in to the portal, you can go directly to the e-TIN registration form. You have to fill up the form with your honest personal information, income details, and bank account information.
Uploading Required Documents
The registration form will need you to upload your NID or Passport details, info about the source of income, trade license, and other relevant details.
Submitting the Application
Finally, the registration process will let you verify your provided information. Once you declare them as honest and accurate, press the submit button. It will complete the registration process and create your TIN.
Getting TIN
An option on the portal dashboard will appear as “View TIN Certificate.” Clicking on it will direct you to your TIN Certificate.
Offline Process to Get a TIN (If Applicable)
Regardless of how streamlined the online registration is, some people may find it difficult to navigate, especially the elderly and people with limited technical knowledge. For them, the best decision would be to visit the nearest Tax Office. The registration process is also straightforward there. It entails:
Getting a Copy of the Application Form: Ask the on-duty staff for a copy of the TIN application form.
Filling Up the Form: Apart from usual personal details, depending on your purpose of use, individual or business, you have to provide information, like Incorporation No, VAT Registration No, and more.
Attaching Essential Documents: Completion of the form will require you to attach copies of essential documents, like a trade license, NID, and others.
Submitting the Application: The last step of the offline process is submitting the form to the official.
It may take a couple of days or less for the office to deliver the TIN certificate. While it’s a more delaying process than online, both are equally viable.
How Long Does It Take to Get a TIN Certificate?
Through online registration, the TIN becomes instantly available for use. In contrast, the offline registration may take a maximum of two days.
Cost of Obtaining a TIN Certificate in Bangladesh
The National Board of Revenue (NBR) has kept TIN registration totally free of charge. You can get your TIN from the official NBR portal or in person from the NBR office without paying a dime.
Maintaining and Updating Your TIN Information
Yes, your TIN certificate needs maintenance, and there may come a time when you will need to update your TIN information. For most situations, storing your TIN certificate somewhere safe, or if online, securing your password from falling into the wrong hands, will do. Deactivating a TIN when it’s not required anymore is also a valid maintenance step.
Upgrading TIN Information
You can change or edit the information given in your TIN certificate both online and offline. Here is how you can do it.
Online Update:
- Log in to your dashboard in the e-TIN portal
- Find the “Edit/Correct Update” button
- Change your provided information
- Submit the form
Offline Update:
- Go to your nearest Tax Center
- Get of copy of a Tax Amendment Form
- Fill up the form marking changeable information
- Attach documents
- Submit the form to the official
Penalties for Not Having a TIN Certificate
Though not having a TIN certificate is not a punishable act, it may create unforgiving situations. One notable example is failing to pay income tax, which will lead you to face penalties. Here are a few common grounds on which you may have to pay penalty money:
Failing to Pay Income Tax
Unreturned tax will:
- Charge a person with a penalty cash, a minimum of BDT 1000, or 10% of the tax on the last income
- Delayed return will cost an additional BDT 50 for each day
- If the person is never assessed, it will cost him BDT 5,000
- If previously assessed, the person must pay a minimum of BDT 1000, or 50% of the tax on the last income
Withholding Tax Return
As it’s not possible for a person to pay income tax without a TIN certificate, their tax gets withheld. They may be charged:
- A minimum of BDT 5000 or 10% of the tax on their last income
- A BDT 1000 for every month of delay
Using False TIN
Paying income tax under a false tax identification number will penalize the taxpayers under the Direct Tax Code. It may result in a cash penalty.
Common Challenges and How Bangladesh Consultants Can Help
Registering for a TIN certificate is not a difficult job. It takes only a few clicks online and requires submissions of a few basic documents. But even the easiest process won’t help you if you encounter a technical difficulty or don’t understand how to follow the steps. It’s not surprising that most people in Bangladesh:
- Are unaware of the purpose and importance of the TIN certificate
- Don’t know how business and personal TINs vary
- Who are professionals, especially working as freelancers or online, don’t know how to identify themselves while registration
In addition, a TIN certificate is mandatory to access hundreds of conveniences: opening bank accounts, buying and registering properties and businesses, registering vehicles, and financing for study abroad, and so on. Misuse or failing to use may invite unnecessary hassles.
Bangladesh Consultant is a team of experts who provide advice and support regarding registration of and everything doable with a TIN certificate. Their in-depth knowledge of NBR guidelines and an insider’s take on the overall procedure make them the most reliable source to seek help from.
Why Choose Bangladesh Consultant for TIN Registration Services?
It should be clear to you by now that dealing with TIN registration can be dangerous sometimes. As it’s directly related to the Tax return, any wrong turn can cause penalties. The registration process, whether online or offline, may feel challenging to some people.
Choosing a trustworthy Bangladeshi Consultant, like Bangladesh Consultant, can save you from the mysteries and dangers around a TIN certificate and related services. You will get:
- Expert consult regarding the rules and guidelines set by the Income Tax Act 2023
- Fast and accurate processing of eTIN or offline registration
- Legal help with issues surrounding TIN acquisition and tax filing
- Special consult for foreign citizens who need a TIN; perhaps for investing, transferring a business’s ownership, or claiming inheritance
- Help and guidance in post-TIN services, like filing year-end income tax, auditing for tax compliance, and solving issues related to the Bank, and other conveniences
- Assists in communicating with NBR or any local tax circle
Final Words
A Tax Identification Number (TIN) creates a unique TAX ID for you as a responsible citizen. The new Income Tax Act, 2023, has made it a must-have for every earning individual. Though it’s possible to get the TIN through via online or offline, the process may not be easy for everyone.
Moreover, failing to maintain the TIN and its misuse can induce legal penalties. To keep safe, consulting a TIN certificate service, like Bangladesh Consultant, will be the best decision.
FAQs about the TIN Certificate in Bangladesh
Is TIN mandatory for all?
According to the National Revenue Board, anyone with a minimum earning above the tax-free threshold, BDT 350,000 for males and BDT 400,000 for females and senior citizens, must have a TIN.
Can Foreigners Apply for a TIN?
Yes, foreigners who fall into categories: non-resident individuals or business presenters can apply for and receive a TIN certificate.
Can I Apply for a TIN without an NID?
Yes, if you are a foreigner, TIN acquisition won’t require an NID, but your passport, visa, work permit, or other relevant information. For Bangladeshis, while an NID is the standard identification medium, in special cases, like for expatriates and adults awaiting NID delivery, they may use authorized documents like a birth certificate.
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