Tax Identification Number (TIN): What is Its Importance
Paying taxes 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. A significant portion of the population holds some major misconceptions regarding TIN due to the lack of necessary awareness. Whether you feel good or not, as a conscious citizen or a part of a democratic country, you are bound to pay your taxes, and here comes the importance of the Tax Identification Number (TIN)!
This discussion will not cover technical details explaining how to complete your TIN registration. Instead, we’ll try to explain why you should have a Tax Identification Number!
What is a Tax Identification Number?
In simple words, a Tax Identification Number (TIN) is a number issued by the government to all individuals to track their tax payment status. It is not provided directly to citizens. Rather, every individual must 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 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.
Bangladesh’s government has made massive improvements to the IT sector. Following the wind, online registration for TIN is super easy.
If you want to know the detailed procedure, follow the in-depth guidelines regarding E-TIN Registration in BD!
In the following lines, we have mentioned some key sectors where you can’t move a single step without providing your TIN!
- Company Registration
When you open a business, you need at least land and an apartment where all of your employees will work together to run your company. The government charges a certain percentage of your total revenue per year for occupying the space for business purposes, which is considered your business tax.
And right then, you’ll need a Tax Identification Number, which is mandatory for paying your valuable tax.
- Exporting Products to Abroad and Vice Versa
You need customs clearance for every transaction when you own an exporting/importing business. Without the Tax Identification Number, you can’t get the clearance, and your product will be seized.
The same applies when you import products from abroad. After all, you will need to show your TIN for every transaction.
- 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. However, some necessary verifications are needed during the renewal process. And verifying tax payment status is one of them.
You can renew your trade license only when your tax payment status is clean. To ensure this clearance, you will need your Tax Identification Number.
- Property Buying
Buying property like land, apartments, etc, clearly indicates financial stability. According to government rules, when you are solvent enough to buy property, you will need your TIN and all other necessary documents.
- For Owning a Credit Card
Sometimes, you may have to provide your TIN to the bank authority to receive your desired credit card. Especially when taking a credit card with a big credit threshold for shopping, you must issue your TIN.
After that, the bank authority will verify your TIN. After the successful verification, they’ll start the credit card issuing process.
- Vehicle Registration and Fitness License
If you decide to purchase a car for yourself, you must submit your TIN and prepare all other documents. This thing is applicable for personal usage. But when you buy a vehicle for business, you’ll need 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 must submit your TIN.
Ending Note
Always remember, the government is not a money-making machine! Instead, it depends on you to run all the ministries, pay all the government jobholders, build bridges, and complete all other mega projects.
As a conscious citizen, it’s your job to pay your taxes and help the government. Otherwise, you will get penalized in several ways that are inescapable.