Bangladesh’s 7.5 Million TIN Holders Do Not File Tax Returns: What the Law Says

Bangladesh has more than 12.5 million holders of Taxpayer Identification Numbers (TINs), but only around five million file income tax returns each year, leaving approximately 7.5 million who do not submit returns, according to a report published by Prothom Alo on October 26, citing National Board of Revenue (NBR) officials.

The figures highlight a challenge for Bangladesh’s tax administration: identifying people who are legally required to file but fail to do so, while distinguishing them from TIN holders who may not have a filing obligation under the law.

A TIN alone does not automatically mean that a person must submit a return in every circumstance. However, filing is compulsory for people whose income exceeds the applicable tax-free threshold and for certain other categories specified under the Income Tax Act 2023. These include some company directors, business partners, public servants and other individuals covered by the law.

Returns are also required to access a range of public and private services. As a result, the number of TIN holders is substantially larger than the number of people who file returns annually.

Penalties can go beyond a fine

Failure to file when legally required can carry financial and administrative consequences. Depending on the circumstances, penalties may include a monetary fine, additional charges on unpaid tax and the loss of certain tax benefits.

The law also provides for measures that can affect access to essential services. Tax authorities may have the power to order utility connections disconnected in qualifying cases, while some employees may face restrictions on salary or allowances if they fail to provide the required return documentation.

The exact consequences depend on the applicable legal provision and the taxpayer’s circumstances. A person who is unsure whether filing is compulsory should check the current rules rather than assume that either possessing a TIN or not having taxable income settles every question.

The enforcement question

The headline figure of 7.5 million non-filers does not establish how many people have deliberately evaded their obligations. The NBR has not provided, in the reporting cited here, a breakdown showing how many of these individuals were legally required to file but did not.