A large number of people in Bangladesh have no idea or misleading information when it comes to income tax and submitting returns. Read this article to know the benefits of the tax identification number.
You can also find an expert guideline to prepare your e TIN registration in Bangladesh here.
Why do You need TIN?
In the contemporary governing system, a state determines a fee (tax) for all its member (citizens). It is crucial for maintaining the various social expenses, funding for welfare sectors, and developing infrastructure.
Bangladesh is encouraging its eligible citizens to register for TIN. It will ensure a smooth flow of economic progression and social development without any interruption.
Income Range for Taxation Eligibility in Bangladesh
The tax-free income range changes each year. At the same time, your income tax rate changes based on your total wealth and yearly income.
The table below is the guideline for the 2021-2022 fiscal year.
|Sl. No||Segments of People for Taxation||Starting Range for Taxable Yearly Income (equal/more)|
|1||Male Individual Earning||3,00,000 BDT|
|2||Female and third-gender individuals earning||3,50,0000 BDT|
|3||Gazetted war-wounded freedom-fighter||4,75,0000 BDT|
|4||Taxpayer individual with special needs (disabled)||4,50,000 BDT|
Note: The amount is calculated for yearly income.
When is it required to get a tax identification number?
According to the Income Tax Guideline 2021-2022, you are required to have the TIN when you have an earning of taxable income. And you are compelled by the income tax and other financial laws to submit a tax return.
Additional situations that require you to have a TIN and regularly submit returns are stated below.
- You have already opened a 12-digit TIN
- Your total income has crossed the tax-free income limit
- When the taxpayer is a shareholder of a company or a shareholder-employee
- If you have a partnership in a firm
- If you are an owner of a motor vehicle
- When you want to receive a trade license to operate a business
- If you are a registered service professional (like a doctor, lawyer, charted accountant, or dentist, etc.) under a professional organization
- If you want to participate in government, semi-government or non-governmental tender.
- To own a licensed firearm
- If you have a saving certificate valued at more than 2,00,000 BDT
We recommend that you adhere to Income Tax Guideline 2021–2022 to know more about when it is compulsory to have a TIN.
Benefits of Tax Identification Number
Having a TIN is not only about taking extra civil responsibilities. You will also enjoy many facilities from having a tax identification number.
Some common benefits of tax identification numbers are noted below:
- You are an esteemed taxpayer.
- If you have a bank account linked with your TIN, then only 10% tax is deducted from your deposit. (Without TIN, 15% is charged from your deposit.)
- If you receive any prize money, then only 10% is deducted from your amount with TIN. Otherwise, the charged payable is 15%.
- You can apply for a bank loan.
- You can avail yourself of incentives and other advantages occasionally offered by the government.
- You will have legal validation of all your wealth and income.
- You can compete as a candidate in a public vote.
- You can apply for a “letter of credit” (LC) in the import business.
- You can ask your bank to issue you a credit card.
- You can be a director of a company.
If you meet the criteria for having TIN under the latest income review, you should register for a TIN. It will save you from many legal obstacles later.
Importance of Keeping Your TIN updated
As a responsible taxpayer, it is your duty to update your income information and pay taxes accordingly. The process of keeping your income tax certificate updated and valid is simply known as a return/income tax return.
Based on Bangladesh’s income tax rules and regulations, you have to file/submit an income tax return from 1st July to 30th November of a fiscal year. You are supposed to file the return within this time each year.
You can submit the return by physically going to your designated income tax office (circle). Your TIN certificate has all the necessary details about your return information. In addition to that, you can submit the tax return at an income tax fair.
There are many benefits of a tax identification number (TIN). If you are having difficulties deciphering legal instruction of income tax laws and rules of Bangladesh, we recommend you consult an expert on this matter.
So, are you a tax-paying citizen?