Why is it necessary to register for income tax?
A taxpayer is identified as a taxpayer through registration (Taxpayer Identification Number-TIN). Registration is required if the income limit of individual taxpayers (including non-resident Bangladeshi), Hindu joint family, partnership firm, individual association, and artificial person created by income tax law is above Tk. 3,00,000 / =. The registered taxpayer calculates the annual income, expenditure, and savings by submitting the return at the end of the year.
Income tax registration is required in the following cases:
- Opening of debentures for the purpose of import;
- Time of application for the purpose of obtaining Import Registration Certificate;
- When renewing a trade license in a corporation or municipal area;
- The contract is effective, at the time of submission of tenders for the purpose of providing goods or services;
- At the time of filing an application for membership of a club registered under the Companies Act, 1994;
- At the time of enrollment or license receipt or renewal as a general insurance surveyor;
- If the contract value of land, building or apartment located in any municipality area of a city corporation or district headquarters is more than one lakh rupees, then at the time of registration of purchase of that land, building or flat.
- If the purchaser of any land, building or apartment located within the City Corporation area is a non-resident Bangladeshi of Bangladesh, the provision of (f) shall not be applicable at the time of registration of his purchase;
- Change of ownership of car, jeep or microbus or renewal of fitness registration;
- In case of disbursement of loan of more than Rs. 5 (five) lakhs to any person by any commercial bank or leasing company;
- Credit card issuance time;
- At the time of approval of professional license of doctor, chartered accountant, hardship and management accountant, lawyer or income tax professional;
- When being a director of a company or a sponsor shareholder of a company;
- The provisions of (k) shall not apply to non-residents who are not citizens of Bangladesh;
- At the time of issuing license to the Registrar of Marriages under the Muslim Marriage and Divorce (Registration) Act, 1984. Provided, however, that in the case of a person who has already obtained a license as a marriage registrar, the TIN certificate must be collected;
- In renewing membership or applying for membership of any trading company;
- At the time of submission of plan for construction of houses for approval of Capital Development Authority (RAJUK), Chittagong Development Authority (CDA), Khulna Development Authority (KDO) and Rajshahi Development Authority (RDA);
- When issuing drug licenses;
- At the time of application for gas connection on commercial basis between City Corporation, Municipal Council or Cantonment Board area;
- At the time of application for commercial based electricity connection between City Corporation, Municipal Council or Cantonment Board area;
- Registration of hired buses, trucks, prime movers, lorries, etc. during registration, change of ownership, fitness renewal and playing for hire;
- At the time of issuance or renewal of certificates for launches, steamers, fishing trawlers, cargo, coasters, dump-barges, etc., including rented water vessels.
- At the time of registration or renewal of the certificate as an agent of the insurance company;
- Permission or renewal of permission for manufacture of bricks by the office of the Deputy Commissioner or by the Department of Environment;
- At the time of submission of nomination papers of candidates for Upazila, Municipality, City Corporation and National elections;
- Due to being a parent or guardian at the time of admission of students in English medium school according to the international curriculum located in any city area of a city corporation or district headquarters.
Now in Digital Bangladesh lot of financial work must have a TIN and without TIN it’s made impossible to do so. When you have a TIN, you have to submit a Tax Return at the end of every income year.