From the trade license of a business to buying a savings certificate, participating in the tender, registering land/flats, making a credit card, being a candidate in the election, etc, you need a TIN certificate for all of these activities, and it is necessary.
It is unnecessary to pay tax for all the TIN certificate holders; there’s a tidy rule for paying taxes according to the yearly income. You should know when it is mandatory to pay income tax if you’re holding a TIN certificate.
If the annual income is more than Tk. 3 lakhs, tax will have to be paid; under 3 lakh, no tax will be applicable. But when it’s about women, third-gender people, and above 65 citizens, the tax will be applied to pay more than 3.5 lakhs of yearly income.
What Is the TIN Number In Bangladesh?
The full form of TIN is a Taxpayer Identification Number. It is an income tax registration certificate. The concerned tax office gives this special number certificate.
The purpose of numbering the certificate is to identify taxpayers in Bangladesh. But yes, not just for taxes; since the TIN certificate will be useful for various needs, the number you carry as a taxpayer will often serve as a state-recognized document.
This special charter of ten (10) numbers has an interesting matter again. You’ll want to know what it is! The first three digits refer to the taxpayer’s area, and the middle three mean his rank. And with the last four numbers, the taxpayer is especially identified.
Suppose you are employed in a government or private organization or are a businessman, and your annual income exceeds the taxable income limit. In that case, you must be registered by taking the TIN. The National Board of Revenue (NBR) has introduced the TIN registration system as a taxpayer to speed up and facilitate the registration process as a taxpayer.
A taxpayer is identified as a taxpayer through the income tax registration number. The registered taxpayer describes the annual income-expenditure and savings by submitting the return at the end of the year. A taxpayer can easily avail of the TIN registration service online at home.
In addition to paying taxes, there are different types of tin certificates depending on the application. This is like –
- Used to create social security cards – SSN.
- Required in business matters – EIN.
- Useful for residential, non-residential, residence and marital status, etc. – ITIN
Tax Payer Identification Number BD
We have to pay taxes for the betterment of our country and help the government to initiate every citizen service. For this, we are provided a Tax Payer Identification Number(TIN) Certificate BD. According to Income Tax Ordinance (1984), Tax Payer Identification Number BD is a 12-digit number, issued to a person who has taxable income during the year. TIN certificate BD contains the 12-digit Tax Payer Identification number.
NBR TIN Certificate BD
The full meaning of NBR is the National Board of Revenue. NBR is the department that has the authority to provide TIN Certificate BD to the applicants. If you need a TIN Certificate, either manually or electrically, you have to apply under the board of NBR. The TIN certificate BD is known as NBR TIN Certificate BD.
The Necessity of a TIN Certificate BD
You need a TIN certificate in Bangladesh to do lots of activities, some these are going to be listed below, check it out.
- In the case of issuing a credit card.
- To register the import letter in case of import.
- To renew trade licenses in city corporations or municipalities.
- For any trade tender.
- For registration of any land or building under the City Corporation.
- For company registration and to be a shareholder of the company.
- for a drug license.
- To become a business association/ organization member or to renew membership.
- For car, jeep, or microbus registration or fitness license.
- To take a loan from a bank or financial institution above 500,000 takas.
- To get a license to practice any professional work, such as lawyers, doctors, engineers, etc.
- Gus, for commercial work, gets the line of electricity.
- To renew the permit or license of the brick kiln.
- To submit the nomination papers for the election.
- These are all the advantages you can have through TIN Certificate.
Do You Have to Give A Return If You Have a TIN Certificate BD?
If the taxpayer’s(having TIN Certificate BD) taxable income is more than Tk 2,50,000 per annum, he must give a return. Women and male taxpayers aged 65 years and above must file returns if their taxable income exceeds Rs 3 lakh annually. (*** May change over time) However, whatever the amount of income, some individuals must file returns. Their list is given below:
- The return must be filed if the taxpayer’s taxable income in the income year exceeds the tax-free limit.
- Having ownership of a motor vehicle (jeep/microbus).
- Membership of a club registered under the Value Added Tax Act, 1991.
- The return must be submitted if you have a trade license to conduct business in the city corporation, municipality, or union parishad.
- Doctors, income tax lawyers, lawyers, chartered accountants, cost and management accountants, engineers, architects, surveyors, or all persons engaged in similar professions must submit the returns.
- All members of the Chamber of Commerce and Industries or any trade association.
- All candidates for the post of the municipality, city corporation, or Jatiya Sangsad elections.
- All persons or institutions participating in the tender for government, semi-government, autonomous organization, or local authority contract work.
- The return must be submitted if the basic salary of government, autonomous, or private jobs is Tk 16,000 or more.
- If a shareholder of a company is a director.
Whose Income tax Return is not Mandatory?
Apart from the above 10 categories of people, if the total taxable income in one income year does not exceed the tax limit for three consecutive years, then it will not be mandatory for them to pay income tax from the fourth year.
Income that Does not Have to Be Taxed( TIN Certificate BD)
- A person’s income only in the agricultural sector is up to Rs 2 lakh in the agricultural sector of the taxpayer.
- There is no income tax on income up to the first Tk 10 lakh in case of income earned from poultry, fish farming, and fish hatchery.
- Suppose the government servant taxpayer gets any special allowance, benefit, or gratuity for performing the job duties. Government employees will be taxed only on basic salary, bonus, and festival allowance.
- There is no income tax on the money received from the pension fund.
- There is no income tax on the money received from the approved Provident Fund, Super Annuation Fund, or Workers’ Participation Fund.
- Income received from any provident fund constituted under the Provident Fund Act of 1925.
- There is no income tax on income up to 50% of the income received from the export business.
- Dividend income up to Tk 25,000 from unit funds and mutual funds.
- Cash dividend sector income received from a company listed on the stock exchange is up to Tk. 50,000/-. There is no income tax on the capital gains earned by the taxpayer from the sale of shares of a company listed on the stock exchange.
- Gratuity income up to Rs 2 crore 50 lacks.
- The income earned abroad by a citizen of Bangladesh is brought in foreign currency in accordance with the prevailing laws of the country.
- There is no income tax on the income arising from the export of handicrafts.
- There is no income tax on income in the pension sector.
- SME businesses involved in producing any product whose annual turnover is less than Rs 50 lakh, there is no income tax on the income of these organizations.
- For a certain period, income was received from the poultry industry, cinema halls, rice brine oil, corn/sugar beet, etc.
- Interest income from wage earners’ development bonds, US dollar premium bonds, EES dollar investment bonds, pound sterling premium bonds, pound sterling investment bonds, euro premium bonds, and euro investment bonds.
Through the above information, you have got a clear idea regarding TIN Certificate in Bangladesh and Its’ importance. TIN Certificate is a document including a 12-digit number to identify the people having that amount of income to pay tax. Now you think, are you capable of paying Tax? If you are, apply for TIN Certificate under the board of NBR.