How to Cancel TIN in Bangladesh

Legal Provisions Under the Income Tax Act, 2023

A Tax Identification Number (TIN) is required for individuals and businesses who have taxable income in Bangladesh. However, in certain situations, a taxpayer may no longer need to remain registered. In such cases, the law allows for cancellation (deregistration) of TIN, subject to specific conditions.

This article explains when and how a TIN can be cancelled, as per the Income Tax Act, 2023.

Why Taxpayers May Want to Cancel Their TIN

A person may seek cancellation of their Income Tax Registration (TIN) for several valid reasons, including:

• Complete closure or loss of business or income source

• Long-term absence of taxable income

• Change in business structure (e.g., sole proprietorship converted into a company)

• Wrongful or unnecessary registration

• Administrative burden of filing returns despite no income

• Risk of penalties due to non-filing

• Permanent departure from Bangladesh

To address such situations, Section 262 of the Income Tax Act, 2023 provides the legal framework for TIN cancellation.

Legal Grounds for TIN Cancellation

Under the law, a taxpayer may apply for cancellation of registration if any of the following conditions apply:

1. No Obligation to File Return

If the taxpayer is no longer required to file an income tax return under:

• Section 264, and

• Is no longer considered a “taxpayer” under Section 2(22)

2. Nil Taxable Income for Three Consecutive Years

If:

• Taxable income has been nil for the last three consecutive years, and

• There is no likelihood of future taxable income due to physical disability or any other reasonable cause

3. Not Required to File Under Section 166

If the taxpayer falls outside the scope of mandatory return filing under Section 166.

4. Death or Dissolution

Cancellation may be applied for in cases of:

• Death of the taxpayer

• Dissolution of a business or organisation

• Any event that causes the entity to cease to exist

5. Permanent Exit from Bangladesh

If the taxpayer has permanently left Bangladesh and is no longer engaged in any income-generating activity within the country.

6. Erroneous or Unnecessary Registration

If:

• The TIN was issued by mistake

• The taxpayer’s legal status has changed

• Registration was not legally required in the first place

7. Other Reasonable Grounds

The law allows cancellation based on any other valid and reasonable cause, subject to verification by the tax authority.

Conditions That Must Be Met Before Cancellation

Even if valid grounds exist, TIN cancellation will not be approved unless all of the following conditions are met:

• ✅ No outstanding tax liabilities

• ✅ All due taxes have been paid

• ✅ No pending tax assessments

• ✅ No income tax disputes in any forum

• ✅ The reason for cancellation is truthful and properly supported

Power of the National Board of Revenue (NBR)

The Income Tax Act also gives authority to the National Board of Revenue (NBR) to cancel a taxpayer’s registration on its own initiative in certain cases, including:

• Lack of a legitimate source of income

• Fraudulent or misleading registration

• Use of TIN for financial crimes or money laundering

• False or incorrect information provided during registration

What Happens After TIN Cancellation?

Cancellation of TIN does not mean deletion of records.

According to the law:

• The tax authority may preserve the taxpayer’s records for a prescribed period

• Records may be used for future audit, verification, investigation, or legal purposes

In legal terms, “deregistration” means deactivation or dormancy of the TIN, not erasure of historical data.

The TIN cancellation provision offers relief to individuals and businesses that no longer have taxable income or legal obligations. At the same time, it protects the tax system by ensuring transparency, record retention, and prevention of misuse.

This balanced approach promotes:

• ✅ Orderly tax administration

• ✅ Accountability

• ✅ Prevention of tax evasion

If you believe your TIN is no longer required, you should apply formally to the income tax authority with proper justification and supporting documents.