Do you require Taxpayer’s Identification Number (TIN) certificate?
Do you know if your monthly salary exceeds BDT 16,000 then you have to obtain TIN certificate from NBR in Bangladesh?
Or have you approached for trade license from City Corporation or registration of vehicle but asked to submit TIN certificate by the service provider?
Or are you employed in the management or administrative function or in any supervisory position in the production function and have to obtain TIN?
The section 184A requirement of twelve-digit Taxpayer’s Identification Number in certain cases has been replaced by the finance act 2017.
Every year income tax changes by passing finance act during national budget session. Hope, you have read my previous article “Salient features of income tax of Bangladesh in 2017-18”. You will get the overview of major changes in income tax after passing finance act 2017.
Guess you are thinking, your income does not exceed the tax exemption threshold.
So then whether you have to obtain TIN from NBR?
Who require to obtain TIN certificate?
You have to collect TIN from NBR if you meet any of the criteria from the below list of this article.
Now the question is all right, you have collected TIN from NBR but whether you have to submit return of income and pay income tax to the NBR?
Don’t be afraid.
The person has collected TIN certificate but all of them do not require filing return of income.
NBR has specified the criteria when any person will require furnishing TIN certificate to get particular services in the section 184A of the Income Tax Ordinance (ITO) 1984.
And the person who requires to file return of income is mentioned in the section 75 of the ITO 1984.
Besides this, there is also benefit of having TIN certificate. The person who holds TIN enjoys reduced TDS rate in certain cases.
A separate article “TDS rates with section references in income tax of Bangladesh for 2017-18” has been published in last week. From this article you will find the full list of TDS rates with references applicable for income year 2017-18.
Anyway, now you are thinking who are those persons to require filing return of income?
Yes I am assuring you in next week you will get a full article on return of income.
From now, you will get important tax issues on this blog which are necessary in your daily financial routine work.
The weekly update will be shared in my facebook page.
So you have to furnish TIN certificate if you fall in any of the following criteria.
What is the rule of NBR and type of TIN?
In particular cases NBR by own also issue a TIN certificate.
If any income tax authority found that any person has taxable income in any year and not applied for the TIN then NBR will issue that person a twelve –digit TIN certificate.
And if any person has already TIN certificate but NBR may issue an order to the person to furnish necessary documents for re-registration for issue a new TIN certificate.
Moreover, if any person holds ten-digit TIN or Temporary Registration Number (TRN) then in that case that person has to obtain twelve-digit TIN certificate before the last date of submission of return of income.
TRN normally issued when income tax authority found any person having taxable income in any year but failed to apply for TIN certificate.
Guess you have heard another TIN certificate “Unified Taxpayer’s Identification Number (UTIN)’.
UTIN is given by the NBR if an assessee has TIN when registered with VAT authority and obtained a Business Identification Number (BIN).
If an assessee having income from business or profession and has obtained TIN certificate from NBR then he has to display the certificate at a conspicuous place of such business premises.
How will you obtain TIN certificate?
You may apply for TIN in either manually or electronically through NBR website.
There is a prescribed form by NBR. You have to fill up the form and apply for the TIN.
But electronically TIN collection process is hassle free.
You don’t require going to NBR office for several times to submit or collect TIN.
So it’s better to submit the application through online.
Before starting the input of information into the application form either in manually or electronically please collect the necessary required documents and information.
Then it will help you to complete the whole process in one attempt.
What are the necessary documents or information?
You will require following necessary documents or information during fill up of the application form:
1. Passport size photograph of the assessee (soft copy if you apply electronically)
2. Name and TIN of the:
a. Business (in the case of sole proprietorship)
b. Partners (in case of a firm)
c. Sponsor Directors (in case of a company)
3. Incorporation no/registration no (wherever applicable)
4. Incorporation/registration date (wherever applicable)
5. Post code of current address
6. Post code of permanent address
7. National ID/Passport number
After completion of the form fill up you will see the following declaration in the form above the assessee signature place:
I hereby affirm that all information given above is correct and complete and I have not taken any Tax payer’s Identification Number.
So be careful during providing information in the form.
Please be patience when you will submit application through NBR website electronically.
You may need to attempt several times to complete the whole process.
But if you are a lucky one you may get it by one chance!
I was not so lucky.
I had to attempt several days to obtain the TIN certificate.
But though I prefer to process electronically rather going physically in NBR office several days.
The most benefit by electronically is that after successfully submitting the application form you will get instant a PDF version of your TIN certificate.
Save the file.
And whenever you will require you could be able to print it.
What information will contain in your TIN?
Your TIN certificate will contain the following information:
- Father’s Name (for individual)
- Mother’s Name (for individual)
- Present address
- Permanent address
- Name of the business/employer (if applicable)
- Registered office address (for company & others)
- Previous (10 digit) TIN (if any)
So you have completed your job.
Whenever you will submit your TIN for any services mentioned in the below list then the responsible person’s job will be started.
What is the procedure to verify fake TIN certificate?
Guess you have heard about fake TIN certificate.
To prevent the use of fake TIN certificate, NBR has specified the tasks to perform by the responsible person to proof the authenticity of holding TIN.
The authenticity shall be completed electronically through NBR website.
But before that the responsible person requires to register in NBR website for user identification electronically.
If the person find fake TIN has been submitted by the customers during checking of authenticity of TIN electronically in NBR website then the person has to be informed NBR electronically through NBR website including detailed information mentioned in the said website.
On receiving the information, NBR shall take appropriate action as per income tax ordinance against the person who has submitted a fake TIN.
What will be the penalty for fake TIN?
Without reasonable cause, if any person use another person TIN or submitted TIN on a return of income or submitted where required then DCT may impose penalty upto BDT 20,000.
After that if the person deliberately uses or used a fake TIN or TIN of another person then it is a guilty of an offence punishable with imprisonment for a term which may extend to three years or with fine up to BDT 50,000 or both.
And what will be the penalty if any responsible person failed to verify TIN?
The size of amount is large than the fake TIN provider.
The DCT or any other income tax authority authorized by the NBR may impose upto BDT 200,000 if the responsible person provides any services without TIN certificate as required from the NBR.
Or upto BDT 50,000 if the person to whom the proof of holding TIN is furnished but failed to verify the authenticity as specified by the NBR.
So the responsible person should be more careful during proof of authenticity.
But the responsibility begins from the side of the person who will submit TIN for particular services.
So you have to obtain valid authentic TIN certificate to avoid penalty and also relieve to responsible person from penalty.
The list of person that require obtaining TIN certificate
The proof of holding twelve-digit TIN shall be furnished in the cases of unless the NBR exempted any person to do so by a general or special order:
(i) opening a letter of credit for the purpose of import;
(ii) applying for an import registration certificate or export registration certificate;
(iii) obtaining the issuance or renewal of a trade license in the area of a city corporation or paurashava;
(iv) submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service;
(v) submitting application for the membership of a club registered under Companies Act 1994;
(vi) obtaining the issuance or renewal of license of or enlistment as a surveyor of general insurance;
(vii) obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney of a land, building or an apartment situated within a city corporation or a paurashava of a district headquarter, where the deed value exceeds one lakh taka;
(viii) obtaining registration, change of ownership or renewal of fitness of a bus, truck, prime mover, lorry etc., plying for hire;
(ix) applying for a loan exceeding five lakh taka from a bank or a financial institution;
(x) obtaining a credit card;
(xi) obtaining the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession;
(xii) being a director or a sponsor shareholder of a company;
(xiii) obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974);
(xiv) obtaining or maintaining the membership of any trade or professional body;
(xv) submitting a plan for construction of building for the purpose of obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority;
(xvi) obtaining or maintaining a drug license;
(xvii) obtaining or maintaining the commercial connection of gas;
(xviii) obtaining or maintaining the connection of electricity for commercial purpose in a city corporation, paurashava or cantonment board;
(xix) registration, change of ownership or renewal of fitness of a motor vehicle;
(xx) obtaining or maintaining a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster and dump-burge etc., plying for hire;
(xxi) registration or renewal of agency certificate of an insurance company;
(xxii) obtaining the permission or the renewal of permission for the manufacture of bricks by Deputy Commissioner’s office in a district or Directorate of Environment, as the case may be;
(xxiii) participating in any election in upazilla, paurashava, city corporation or Jatiya Sangsad;
(xxiv) obtaining the admission of a child or a dependent in an English medium school, providing education under international curriculum, situated in any city corporation, district headquarter or paurasabha;
(xxv) receiving any payment which is an income of the payee classifiable under the head “Salaries” by an employee of the government or an authority, corporation, body or units of the government or formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more;
(xxvi) receiving any amount from the Government under the Monthly Payment Order (MPO) if the amount of payment exceeds taka sixteen thousand per month;
(xxvii) receiving any payment which is an income of the payee classifiable under the head “Salaries” by any person employed in the management or administrative function or in any supervisory position in the production function;
(xxviii)obtaining or maintaining the agency or the distributorship of a company;
(xxix) receiving any commission, fee or other sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of mobile phone account;
(xxx) receiving any payment by a resident from a company against any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service;
(xxxi) submitting a bill of entry for import into or export from Bangladesh.