The Inland Revenue Department (IRD) has underscored the necessity of acquiring a Tax Identification Number (TIN), warning that failure to do so incurs a penalty of Rs. 50,000. Effective January 1, 2024, any individual aged 18 or above, or those reaching 18 after this date, are mandated to register with the IRD and obtain a TIN.
While the possession of a TIN doesn’t automatically indicate an obligation to pay income tax, individuals earning an annual income exceeding Rs. 1.2 million are required to pay income tax as per the stipulations.
The Ministry of Finance clarified that a TIN is now mandatory for several activities, including opening a current account, obtaining building plan approvals, registering a motor vehicle, renewing a license, and registering land title deeds.
To facilitate registration, the public can opt for various methods, as outlined by the IRD:
- Online Registration: Individuals can visit the IRD website and navigate to e-Services, where they should click on “Access to e-Services” and select “Taxpayer Registration.” After filling and submitting the application form, a certificate containing the TIN and a one-time PIN will be emailed upon departmental review.
- Registration by Post or In-person: Applicants can complete the Registration Application Form and submit it to the Primary Registration Unit at the IRD Head-office (2nd Floor) or any nearby Regional/Metropolitan Office.
For online registration, a PDF of the National Identity Card (both sides scanned) needs to be uploaded. In cases where the address on the NIC has changed, an appropriate document validating the new address must also be uploaded. The IRD encourages compliance with these requirements for smooth registration.
