The citizens of Bangladesh can register for Tax Identification Number (TIN) for paying income tax and various other purposes. They can also deactivate TIN when it is not required anymore. TIN can be deactivated upon fulfilling some terms. Let’s take a look into the process of deactivating TIN in Bangladesh.
What is TIN?
TIN is a unique alphanumeric code assigned to individuals and businesses by the National Board of Revenue (NBR). It serves as an essential identification and tracking system for tax purposes. The TIN helps the government maintain accurate records, monitor taxpayer compliance, and facilitate efficient tax collection. Whether you are an employee, self-employed professional, or business owner, obtaining a TIN is crucial for fulfilling your tax obligations.
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TIN Certificate Deactivation Terms
Government Announced TIN Certificate Deactivation Terms
The Bangladesh government has recently established six conditions for applying for the cancellation of TIN registration.
i. Those who are not obligated to file tax returns.
ii. Cessation of existence due to death, dissolution, extinction, or similar circumstances.
iii. Permanent departure from Bangladesh with no earning activities in the country.
iv. Duplicate or erroneous registration.
v. Change in legal status.
vi. Any other lawful reason.
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Who Can Deactivate TIN
When a taxpayer's income falls below the taxable limit, their tax liability stops. There may be a risk that the life expectancy of the individual will fall below the minimum income tax liability in the near future. In that case, it is necessary to cancel the TIN certificate in advance.
The proposed taxable income thresholds in Bangladesh for FY 2023-2024 are as follows:
- Above BDT 350,000 per annum for individual taxpayers.
- Above BDT 4,00,000 for females, and elderly persons aged 65 years or above.
- Above BDT 475,000 in the case of a disabled person and third gender person.
- Above BDT 5,00,000 in case of a gazetted freedom fighter wounded in war.
Sometimes, despite having an income lower than this, one may need to present a TIN certificate for other purposes. In such cases, the holder can revoke the certificate if it is not required anymore.
When a taxpayer dies, his or her TIN certificate can be canceled.
After a taxpayer's death, his or her heirs are responsible for canceling the TIN. However, if the deceased had an active business, canceling the TIN requires canceling and renewing all business-related documents. In such cases, the heirs will not be able to cancel the deceased’s TIN number.
If a Bangladeshi citizen works abroad with no taxable income in Bangladesh, he or she is not obligated to pay taxes. In such cases, the Bangladeshi expatriate can cancel his or her TIN registration.
It is essential to remember that a person can only have one TIN certificate. Duplicating or having multiple TINs is not allowed.
If any error occurs in the registered TIN due to mistakes by the registrar or tax officer, canceling the TIN might be necessary to correct the situation.
How to Deactivate TIN in Bangladesh
Necessary Documents
To cancel your TIN certificate, you need to be aware of the following rules. You need to get the necessary documents ready in hand upfront:
i. Your Current TIN certificate: Bring a printed copy of your current TIN certificate as proof.
ii. National Identity Card: Carry your National Identity Card and a photocopy of it.
iii. Acknowledgment of Zero Tax Return Filing: Provide a photocopy of the acknowledgment of receipt for filing zero tax returns for at least three consecutive financial years.
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Application Procedure for Canceling TIN Certificate
Filing Zero Tax Returns for 3 Consecutive Years
Since you need to show acknowledgment of zero returns filed for three consecutive financial years, it's important to prepare for the next three years. File zero returns for three consecutive years and keep the tax return receipts for later use.
Applying to the Tax Circle Office
When filing zero return for the third year, visit your tax circle office. Bring the receipts of returns for the last two years and complete an application form with the cess commissioner there. Clearly explain the reasons for canceling your TIN certificate in the application. Once you have written the application, submit it along with the receipts of the last three years’ returns and the necessary documents.
Note that it is not mandatory for the TIN certificate owner to go to the Income Tax office for submitting the application. If he/she is unable to go, any person can appear at the Tax Circle Office on his/her behalf and submit the application instead.
Tin Certificate Cancellation Fees
There is no cost as announced by the government in the entire application procedures for the cancellation of the TIN certificate. That is, taxpayers can cancel their TIN certificate free of charge.
Post-Application Proceedings for Canceling TIN Certificate
After submitting your application, the Excise Commission officials at your tax circle will register your income tax file. They will thoroughly review the reasons mentioned in your application. If everything is in order, your TIN certificate will be finally canceled.
Bottom Line
TAX Identification Number (TIN) is required for many purposes. However, one can register for TIN and deactivate later, if it is not required in future. Following the TIN certificate deactivation terms, citizens of Bangladesh can apply to cancel their TIN certificates. So far, we have discussed how to deactivate TIN in Bangladesh. Hope it helps!
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