NBR
How to Deactivate TIN in Bangladesh: A Comprehensive Guide
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.
Read more: Universal Pension Probash Scheme: Registration Process for Expatriate Bangladeshis
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.
Read more: e-TIN: Online registration process in Bangladesh
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.
Read more: Surokkha Universal Pension Scheme: Registration Process for Bangladeshi Self-Employed and Non-Institutionalized Workers
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.
Read more: Smart NID Card in Bangladesh: Online Application Process, Documents Needed, Fees
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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Appellate Division orders Dr Yunus to pay NBR Tk 12 crore tax on donations
The Appellate Division of the Supreme Court today (July 23, 2023) ordered Nobel laureate Dr Muhammad Yunus to pay Tk 12 crore tax on donations to the National Bureau of Revenue (NBR) after dismissing a leave-to-appeal in this regard.
A four-member bench of the Appellate Division, headed by Chief Justice Hasan Foez Siddique, passed the order after hearing the leave-to-appeal submitted by Dr Yunus against a High Court verdict.
Attorney General AM Amin Uddin represented the state during the hearing, while Fida M Kamal and Barrister Abdullah Al Mamun stood for Dr Yunus.
Earlier on June 21, a leave-to-appeal was filed against the High Court verdict. On July 9, the chamber court set July 17 for hearing in the Appellate Division.
Read: HC asks Dr Yunus to pay over Tk 12 crore as donation tax
On July 17, the Appellate Division adjourned till July 23 the hearing on the appeal against the High Court verdict.
According to the petition, NBR served three separate notices claiming Tk 12,28,74,000 tax against Tk 61.57 crore donation during 2011-2012 fiscal year, Tk 1.60 crore tax against Tk 8.15 crore donation in FY 2012-2013, and Tk 1.50 crore tax against Tk 7 crore donation in FY 2013-2014 as per the Donation Tax-1990.
Read: Trial against Dr Yunus to continue in labour court: Appellate Division
Dr Yunus challenged the validity of NBR's notices and filed a case in the Appellate Tribunal. According to him, NBR cannot claim tax against donations as per law.
On November 20, 2014, his application was rejected. Then in 2015, he filed three income tax reference cases in the High Court.
After that, the High Court ruled on May 31 that the tax imposed by the NBR against the money that he had donated to three trusts was valid.
After the verdict on May 31, Attorney General AM Amin Uddin told reporters that Dr Yunus had donated Tk 77 crore to three institutions. “The petitions were dismissed. Now the tax demanded by the NBR will have to be paid. The NBR had demanded more than Tk 15 crore. He (Dr Yunus) has already given around Tk 3 crore. Now the remaining Tk 12 crore will have to be paid in taxes.”
Read more: HC stays labour law violation case against Dr Yunus for 6 months
Land and property registration cost doubles
The tax on property registration has been doubled under the Income Tax Act 2023 in all areas of the country including Dhaka, Chattogram, Narayanganj, and Gazipur.
Whether transferring immovable property or land and flats in any area of Bangladesh, acquisition of ownership requires double taxation, as per the new Income Tax Act.
Under the Income Tax Act 2023, the National Board of Revenue (NBR) has fixed the new tax in the source tax rules. After taking the final decision in this regard on June 26, the Act was published in the gazette on July 3.
Also read: Tk 2,000 min tax for TIN holders won't be imposed; Finance Bill 2023 passed in parliament
The owners of immovable property in Gulshan, Banani, Motijheel, Dilkusha, North South Road, Motijheel and their extended areas, and Mohakhali area of the capital have to pay the highest amount as registration tax.
For buying property in these areas, a buyer has to multiply 8 percent tax per Katha or Tk 20 lakh, whicever is the maximum will be taken into consideration in taxing for registration of land, flats, or any other structures. This is considered as the highest property tax ever.
According to Section-6 of the Income Tax Act 2023, entitled 'Collection of Tax on Transfer of Property', property registration, tax has been increased from 4 percent to 8 percent in various areas of Dhaka, Chattogram, and Narayanganj.
Also read: JS passes bill to curb discretionary powers of income tax officers
Besides, the tax has been increased from 3 percent to 6 percent in Gazipur, Munshiganj, Manikganj, Narsingdi and Dhaka, and Chattogram areas outside the City Corporation and municipal areas.
Apart from this, the property tax under the jurisdiction of any municipality in Bangladesh has been increased from 2 percent to 4 percent and in other areas from 1 percent to 2 percent.
Earlier on June 1, the finance minister made a proposal in this regard in his budget speech. And that proposal was included in the new rules.
Also read: Building owners to get 10 percent holding tax rebate for rooftop gardening: LGRD Minister
A senior official of NBR told UNB that to achieve the revenue collection target; it is natural to increase the tax rate.
“In our jurisdiction, this sector has huge revenue generation opportunities. Moreover, the difference between the real value and deed value of almost all land or flats across the country including the capital is huge. Although, we have increased the tax rate on deed value,” the official said.
Those who have the ability to buy immovable property in the capital, have the ability to pay that tax, he said.
Also read: Income Tax Bill 2023 placed in Parliament
HC asks Dr Yunus to pay over Tk 12 crore as donation tax
The High Court on Wednesday (May 31, 2023) asked Nobel Laureate Professor Dr Muhammad Yunus to pay over Tk 12 crore as donation tax to the National Board of Revenue (NBR).
The HC bench of Justice Muhammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir passed the order after rejecting the petition of Dr Yunus challenging the notice of NBR.
Barrister Mostafizur Rahman stood for Dr Yunus while Attorney General AM Amin Uddin represented the state.
Read more: ACC sues Dr Yunus, 12 others in case over misappropriation of about Tk 25 cr
On May 23, Dr Yunus filed a petition challenging the notice issued by NBR claiming tax Tk 15 crore on donation.
The HC fixed May 31 for hearing the petition.
According to the petition, NBR served three separate notices claiming Tk 12,28,74,000 as tax against Tk 61.57 crore as donation during 2011-2012 fiscal year, Tk 1.60 crore tax against Tk 8.15 crore as donation in 2012-2013 FY and Tk 1.50 crore as tax against Tk 7 crore as donation in 2013-2014 FY as per the Donation Tax-1990.
Read more: Yunus, Clooney address German Postcode Lottery Charity Gala in Germany
Budget FY23-24: Focus should be on tackling macroeconomic challenges, says Dr Atiur Rahman
Bangladesh's upcoming national budget for FY23-24 should focus on macroeconomic challenges such as taming inflation, better revenue collection, rein in growing defaulted loans and IMF-suggested reforms.
This was stated by Dr Atiur Rahman, former governor of Bangladesh Bank in conversion with UNB on the expectations from the budget to be placed in parliament on June 1.
Dr Atiur said budget will certainly have to address a number of macroeconomic challenges. The foremost is, of course, the inflation which is still running high at more than nine percent.
“Bringing this down to 6.5 percent in the next fiscal year may not be easy unless we go fast towards market-based solutions of major macroeconomic challenges arising out of administratively controlled indicators like rate of interest and foreign exchange rates,” he said.
Read more: Tk337.60 crore budget for FY2023-24 approved for placing in Parliament
Thanks to the IMF programme, the budget may encourage regulatory authorities to go for an ‘interest rate corridor’ and a ‘single exchange rate’ that are long overdue. If we could have followed this time- tested path of market-driven macroeconomic management many of the ongoing challenges would have been addressed by now, said the development economist.
“Yet, it is better late than never,” he said adding “Of course, some sectors like agriculture, export and remittances would still need fiscal support and they must continue to get it.”
This, he said, will be desired support to the real economy which can contribute towards easing supply-side constraints to reduce inflation to some extent.
However, constraining demand pressure by raising interest rates still remains a major move to reduce inflation. “I hope the macroeconomic managers would like to take this prudent path in the next fiscal year without any hesitation.”
Read more: Curbing inflation without destabilising macroeconomic situation presents challenge for budget: Selim Raihan
He said the rich are currently enjoying huge advantages of negative rate of interest when adjusted against inflation rate may raise political economic hurdles against such a move. But the gains of long-term macroeconomic stability must guide the policy makers to overcome such pressures, said Dr. Atiur.
“I think one must not look at IMF conditionalities negatively as the budget makers have also been flagging such reforms for quite some years. The local economists in general have also been arguing for a more balanced budget with manageable deficits,” he said.
Bangladesh, of course, has done pretty well in maintaining budget deficits around five percent. This year it may go above five percent (5.3%) which is not that bad.
“To maintain this level of budget deficit we need to raise our domestic resources by reforming our tax administration system through higher levels of digitalization and a more efficient tax system,” Dr Atiur said.
Read more: Tk 75,000cr revenue shortfall to widen current fiscal’s budget deficit: CPD
The banking system has been well digitised in the meantime. Why should the NBR not take advantage of this modernisation of the money market and replicate a fully digital revenue administration system?, he questioned.
Since the inflation remains very high, the fiscal measures for higher levels of social security for the extreme poor and lower income groups in terms of higher food subsidies and support for agriculture must continue in the upcoming budget as well. Strategic support for digital infrastructures for making the economy smarter must also be the cornerstone of the next budget, he pointed out.
“Simultaneously, we must keep our budget as cautious as possible to restrain the inflationary outlook,” he noted.
Read more: Inflation, revenue shortfall, dollar crisis the major challenges for economy ahead of election-year budget
IMF team due in Dhaka on April 25 to discuss 2nd tranche of $4.7b loan
A team of the International Monetary Fund (IMF) is due to arrive in Dhaka on April 25 to discuss the progress in the use of the first tranche of its US$4.7 billion loan programme for Bangladesh and the release of the second installment.
The Ministry of Finance sources told UNB on Wednesday that during its April 25 to May 2 visit the mission will hold meetings with the officials of the Ministry of Finance's Finance Division, Financial Institutions Division, Economic Relations Division (ERD), Bangladesh Bank, and National Board of Revenue (NBR).
IMF Asia and Pacific Division Head Rahul Anand will lead the team comprising three to four members, the ministry sources said speaking on condition of anonymity.
Read More: World Bank spring meeting begins in Washington today, announcement on $50bn allocation to face global crisis likely
Bangladesh received the first tranche of US$476.2 million of the $4.7 billion loan approved by the IMF on January 30.
The entire amount of the loan will be paid in seven installments in three and a half years until 2026. As such there are six more installments left.
A senior official of the ministry said the IMF usually reviews various aspects of compliance before disbursing each tranche. Accordingly, an IMF team will come next September to review the fulfillment of loan conditions before disbursing the second tranche.
Read More: Following IMF advice BBS to calculate inflation on a new base year from March
Usually before each budget announcement, an IMF mission comes to Dhaka to discuss budget assistance. Now that the loan programme is going on with them, besides the budget assistance, the issues of fulfilling the loan conditions will also come up for discussion, said the sources.
Commerce, Home ministries coordinating govt's tough stance on price gouging ahead of Ramadan
This year's Ramadan is still a couple of days away, but a segment of traders already appears eager to increase profit margins by raising the prices of different commodities.
The government of Bangladesh however claims to be on to them, and has taken various initiatives to keep the market stable during the holy month.
Prime Minister Sheikh Hasina has directed officials to increase surveillance across the country so that dishonest businessmen cannot make excessive profits. She particularly instructed the field-level administration to be on alert. The Commerce Ministry has said it will keep an eye on the traders so they cannot destabilize the market by creating any artificial crisis.
Even detectives from the law enforcement agencies under the Home Ministry have been instructed to keep their eyes open so that unscrupulous syndicates do not create an artificial crisis in Ramadan.
Read: Dates, fruits to be more costly during Ramadan due to LC opening crisis
In the past, it was noticed that traders increased the prices of goods several times before the start of market supervision ahead of Ramadan. Just before Ramadan, the demand for items like edible oil, sugar, pulses, chickpeas, spices, and so on increases. Traders take this opportunity and raise the prices of in-demand items. It is no different this time.
“Ramadan is a few days away. Like last year, I have bought sugar, pulses, and chickpeas at a much higher price. Every year the same thing happens. There is also an upswing in the vegetable market,” Wahid Fakir, a resident of Bhatara New Market, told UNB.
The prices of sugar, oil, ginger, onion, and other essential goods have all increased in the last week. Vegetables, fish, and meat prices are also going up. Although there is also no shortage of edible oil in the market, daily essentials are selling at an increased price rate every week.
"This year we are already on alert from before. No one will be spared, if there is an artificial crisis in the market. We, the local administration, including the law enforcement agencies, and consumer rights protection directorate, will continue to monitor the market with mobile courts,” Commerce Minister Tipu Munshi told UNB.
Read: People forced to return home with bags half full due to higher prices of chicken, meat, fish
“As preparation for Ramadan, I have had meetings with businessmen one to two months ago. That's when we asked them to increase imports. In particular, instructions have been given so that the banks open the LCs quickly for the import of food products,” he said.
“The government has taken all kinds of necessary initiatives to keep the prices of goods under control during Ramadan. We have warned the traders about the preparations in advance this year. Controlling commodity prices was a challenging affair at this time of global crisis and rise in dollar rate,” he also said.
“Despite this, dollars have been provided for import of all food products commonly used in Ramadan. Besides, the ministry has requested the NBR to reduce the duty and VAT to reduce the prices of commodities like sugar and edible oil,” said the minister. “In addition, we are taking several other programmes to control the prices of goods during Ramadan. Apart from the family card allocated for 1 crore families, sugar and chickpeas will be sold in truck-sales in Dhaka and divisional cities. NBR has also extended the time for import of rice by three more months."
“Hopefully, the prices of goods will be stable during Ramadan. The government's preparation in this regard is good enough,” added Tipu Munshi.
Read More: Have enough stock, no scope of price hike during Ramadan: Tipu
Asked about the role of law enforcement agencies in keeping the market stable during Ramadan, Home Minister Asaduzzaman Khan said, "The law enforcement agencies have been instructed to prevent the rise in the prices of goods.”
“Detectives have already been instructed to keep an eye so that unscrupulous syndicates do not create any artificial crisis around Ramadan and make the market unstable. Several strict steps have been taken, including conducting mobile courts, to control the prices of consumer goods by suppressing syndicates,” he said.
“Various strategies are being formulated to prevent artificial crises in the market and to take action against those who stockpile goods. Along with the police, the law enforcement agencies and consumer rights department, including RAB, will be active in the field, the intelligence surveillance will also be increased,” he also said.
Cabinet Secretary Mahbub Hossain said, “If there is an abnormal situation in the market, we can enforce the law. Every deputy commissioner has been told about this. They will monitor it very strictly. We will also monitor from here.”
Read More: Make marginal profit in Ramadan, Munshi urges businessmen
1250MT sugar on 42 trucks from India stuck at Benapole for a month
Forty-two trucks loaded with 1,250 tonnes of sugar from India remain stuck at Benapole port for the past 28 days, as the local customs authorities allegedly imposed a higher tariff than stipulated by the government of Bangladesh.
According to the port officials, a total of 84 trucks carrying 2,500 tonnes of sugar imported in six consignments by Setu Enterprises arrived at Benapole port on December 25 last year.
Of six consignments, three were released after paying a tariff of $430 for each tonne of sugar as per the rate set by the National Board of Revenue (NBR), said Abdul Latif, the clearing and forwarding (C&F) agent of Setu Enterprises.
Read More: Gold worth Tk 1.5 cr seized at Benapole
However, customs authorities then imposed a higher tariff of $570 per tonne for the remaining 1,250 tonnes of sugar following a complaint by the Bangladesh Sugar Refinery Association.
In its complaint, the association stated that sugar is being released from the port by showing lower values than their actual worth.
"The importer is paying demurrage of Tk2000 per truck for every day. There are port charges too. If it is not resolved soon, the importer will suffer a huge loss," he added.
Read More: 26 rescued Bangladeshi fishermen return from India
Indian truck driver Ashish Sarkar said he has been living in his truck for 28 days.
"I don't know how many more days I will have to pass here fighting a severe cold," he added.
In this regard, Joint Commissioner of Benapole Custom House Md Shafayet Hossain said that three consignments of sugar were released from the port following procedures. Since we have received a complaint, the higher authorities will look into the matter, he added.
Read more: Trade halted at Benapole land port
5% cut in VAT on imported edible oil extended till April 30
The government has extended the reduced 5 per cent value-added tax (VAT) on edible oil until April 30, 2023.
The extension will be effective from January 1, after the date of the earlier notice in this regard that expired on December 31, said a notification issued by the Finance Ministry on Monday.
Read more: 50 percent edible oil to be produced in country by next 3 years: Agri Minister
The National Board of Revenue (NBR) slashed the VAT on soybean oil and crude palm oil from 15 per cent to 5 per cent during imports and exempted the VAT at the production and trading stages in March last year.
The government decided to cut VAT on edible oil amid growing concern among consumers over price hike in edible oil and essential commodities.
Reform must to reduce indirect tax burden on lower income groups: Speakers
Speakers at a dialogue said that the income inequality in Bangladesh is widening due to indirect tax burden to lower income groups, while rich people are paying less comparing to their income and wealth.
The speakers said this while speaking at a policy dialogue on ‘Using direct taxation to tackle inequality and boost revenue’ held at BRAC Inn in the capital on Wednesday (December 28, 2022).
Dr. Mohammad Abdur Razzaque, Chairman of Research and Policy integration for Development (RAPID) presented a keynote paper on the topic.
Former chairman of NBR Dr Muhammad Abdul Mazid, Director General of BCS (Tax) Academy MM Fazlul Haque, Professor of DU Dr Abu Eusuf, Finance Division (budget) joint secretary Dr Mohammad Abu Yusuf, ERD Joint Secretary Md Anowar Hossain, among others, spoke in the function.
Read more: Tax return submission deadline extended to January 1, 2023
RAPID Chairman Dr Razzaque explained in the keynote paper that income inequality is widening in society despite growth in manufacturing, agriculture, and other sectors due to an unjust taxation system.
This income discrimination would be more if the reform in the taxation system is not done with a strong commitment to the nation, he pointed out.
“Comparing the small GDP of many other economies in the world, Bangladesh earns only 35 percent of its revenue from direct tax while it is 65 percent from indirect tax. It is expected to be 70 percent revenue from the direct tax, considering the volume of the country’s (Bangladesh) economy like some other countries,” he added.
Dr Razzaque said that recently the NBR announced to increase the share of direct tax from 35 to 70 percent of total revenue – which is a welcome initiative and will drive economic growth and strengthen the government’s ability to provide essential public services.
Read more: Present tax system is not in favour of industrial development: BCI
But the implementation of the target is far behind the projected time, he said.
Dr Abdul Mazid said, “The NBR must be established as a state agency, and not a government agency. As such, NBR should not be dependent on the government. Rather, it should be an independent operator on behalf of the state.”
He emphasized long-term planning to increase revenue collection by reforming Bangladesh's taxation system and the NBR.