The Importance of Having Tax Identification Number (TIN)

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Paying tax to the government is one of the most mandatory things for every citizen. But sadly, the majority of them are not big fans of it. Because a significant portion of the total population holds some major misconceptions regarding TIN for the lack of necessary awareness.

You feel good or not, as a conscious citizen or as a part of the democratic country, you are bound to pay your tax, and here comes the importance of the Tax Identification Number (TIN)!

This discussion will not cover any technical things explaining how to complete your TIN registration. Instead, we’ll try to explain why you should have a Tax Identification Number!

What is Tax Identification Number?

In simple words, a Tax Identification Number or TIN is basically a number issued from the government to all individuals to track their tax payment status.

It is not provided directly to the citizens. Rather, every individual is to go through a registration process. After completing the successful registration, a unique number is provided to the person, which is considered his Tax Identification Number.

Top 6 Reasons Why You Should Own a Tax Identification Number

There are so many reasons considering what you must have to own a Tax Identification Number. Because without TIN, you will be compelled to sacrifice enjoying the major facilities from your country that every citizen deserves.

And in Bangladesh, the government has brought massive improvements in the IT sector. Following the wind, online registration for TIN is super easy.

If you want to know the detailed procedure of it, you can follow the in-depth guideline regarding E TIN Registration in BD!

In the following lines, we have mentioned some of the key sectors where you can’t move a single step without providing your TIN!

  1. Company Registration

When you are opening a business, you need at least a land and apartment where all of your employees will be working together to run your company. For occupying the space for business purposes, the government charges a certain percentage of your total revenue per year that is considered as your business tax.

And right then, you’ll need a Tax Identification Number, which is mandatory for paying your valuable tax.

  1. Exporting Products to Abroad and Vice Versa

When you are the owner of an exporting/importing business, you need customs clearance for every transaction. And without the Tax Identification Number, you can’t get the clearance, and your product will be seized.

The same thing is applicable when you import products from abroad. After all, you will need to show your TIN in the case of every transaction.

  1. Trade License Renewing

Every year all the businessmen in the country need to renew their trade licenses. There is a certain process through which they renew their trade license with enough convenience. But in the renewing process, some necessary verifications are needed. And verifying tax payment status is one of them.

You can renew your trade license only when your tax payment status is clean. And for ensuring this clearance, you will definitely need your Tax Identification Number (TIN).

  1. Property Buying

Buying property like land, apartments, etc is a clear indication of financial stability. According to government rules, when you are solvent enough to buy property, you will need your TIN along with all other necessary documents.

  1. For Owning a Credit Card

In some cases, you may have to provide your TIN to the bank authority to receive your desired credit card from them. Especially when you are taking a credit card with a big credit threshold for shopping, you will need to issue your TIN.

After that, the bank authority will verify your TIN. After the successful verification, they’ll start the credit card issuing process.

  1. Vehicle Registration and Fitness License

If you decide to purchase a car for yourself, you’ll need to submit your TIN besides preparing all other documents. This thing is applicable for personal usage. But when you buy a vehicle for business purposes, you’ll need to get a fitness license. And in that particular case, you are also bound to submit your TIN.

Even every year, when you need to renew your fitness license, you will need your TIN to submit.

Ending Note

Always remember, the government is not a money-making machine! Instead, the government is always dependent on you to run all the ministries, pay all the government jobholders, make bridges, and all other mega projects.

As a conscious citizen, it’s your job to pay your tax and help the government. Otherwise, you will get penalized in several ways that are inescapable.