According to the Finance Ministry, a Tax Identification Number (TIN) doesn’t automatically make someone liable for income tax; the obligation arises only when income exceeds the annual tax exemption limit of Rs. 1.2 million for those above 18.
However, submitting the TIN is mandatory when opening a current account, requesting building plan approval, registering a motor vehicle, renewing a license & registering title to land from Feb. 01, the President’s Media Division states.
In a statement, the Inland Revenue Department (IRD) had previously stated that it is mandatory for persons at the age of 18 or more, or who turn 18 years on or after 01 January 2024, to register and obtain a TIN.
It also states that those who exceeds the annual tax exemption limit should also register for the income tax.
Those who not register in this manner will be subjected to a penalty not exceeding Rs. 50,000, the IRD notice states.
