Taxation is the principal source of revenue for any government. As a result, the government issues a Tax Identity Number (TIN), an identification number granted to individuals or businesses to trace tax payments.
The National Board of Revenue (NBR) is the only authority in Bangladesh to provide a TIN Certificate to an applicant. A TIN certificate can be obtained physically or electronically by applying to the NBR (National Bureau of Statistics in Bangladesh).
This article discusses the procedure to complete TIN registration in BD, document requirements, and the benefits of TIN.
Table of Contents
What is E-TIN?
E-TIN refers to obtaining a TIN certificate using electronic means. Regardless of their annual income, every citizen with a job requires obtaining a TIN Certificate.
Besides, all commercial entities, companies, or branch/liaison offices must apply to the NBR for a TIN Certificate. The present government has adopted E-TIN to improve the quality and effectiveness of tax collecting procedures to modernize the country.
Steps to Obtain a TIN Certificate
The methods to obtain a TIN certificate in Bangladesh are as follows; because the process is digitalized, it saves a great deal of time and effort:
- First, go to https://secure.incometax.gov.bd/TINHome
- Provide your phone number.
- You will receive a User ID and password. Open your account using the credentials.
- A code is provided to the phone number, which is used to retrieve the User ID/Password.
- Fill out the TIN Registration form with the applicant’s/relevant company’s details by logging in with their User ID/Password.
- Review the submitted application
- Download your E-TIN (Electronic Tax Identification Number) certificate.
Documents Required for Manual TIN Registration
- A copy of the Trade License Certificate of Incorporation
- Articles of Association and Memorandum of Association (for limited companies)
- A Certificate of Bank/Financial Solvency (If it’s a Proprietorship or a Company)
- Owner’s photograph (If Proprietorship) (3 Copy)
- Managing Director’s photograph (If company) (3Copy)
- Three copies of a passport-sized photograph are required (If Person)
- Copy of Entrepreneur’s National ID/Passport
Benefits of TIN
Following are some of the significant benefits of having a registered TIN:
Submit your tax returns
A TIN registration is required to file taxes if your company is a multi-member LLC, a partnership, or you have workers. It’s the identity you’ll present to the IRS when you submit your company’s taxes at year-end.
The TIN will be related to all financial transactions made on your company’s behalf. You won’t have to worry about missing tax deadlines if you apply as early as possible.
Open Bank Accounts for Your Business
Most institutions demand TIN registration when opening business banking accounts. Another option for keeping your personal and work finances separate is to open a company bank account.
It will make tracking and controlling your professional spending much easier, allowing you to establish more efficient budgeting strategies for your company.
Business bank accounts also give you access to finance specialists and services (such as payroll services and SME loans) that can help you manage your company more efficiently. You can also open a company credit card with its own advantages.
Boost Your Business Credit
A TIN is used to track your business’s credit in the same way your passport tracks your travel history and visas. Establishing good credit will aid in your company’s financial health, and obtaining a TIN is a necessary first step.
Having good business credit can help you get approval for more loans, better interest rates, and a better chance of growing your firm.
Increase Your Chances of Getting More Business Loans
Although a TIN is not essential for all business loans, many lenders prefer a corporation with business accounts that has proved its business credit. If you have good business credit, qualifying for certain loans is higher. You’ll also need a TIN before you can even start building credit.
Tax Returns
Citizens with TIN registrations get better tax returns without much hassle. Since it’s an identification number for the taxpayer, all transactions are included in the record, and it’s less hassle for everyone from you to the National Board of Revenue (NBR).
Associations
You can associate your TIN with your business and use the credit ratings back and forth to get approval for better personal loans, better interest rates, better benefits, and more.
Benefits of Vat registration:
There are many benefits to VAT registration, including:
-You can claim back any VAT you have paid on business expenses.
-You can register for the Flat Rate Scheme, which could save you money on your overall VAT bill.
-You can charge VAT on the goods and services you sell, which may make your business more competitive.
-You will have to keep accurate records of your sales and purchases, which could help to improve your overall business management.
-VAT registration can give your business a professional image and make it appear more established.
As you can see, there are many benefits to VAT registration. If you think your business could benefit from VAT registration, then you should speak to an accountant or tax advisor to find out more.
Final Words
Registering for taxpayer identification number is every employed citizen’s civic duty. Unlike many other government processes, this is significantly beneficial for the government and the TIN holder. Use your TIN to make the most out of the opportunities.
