The Inland Revenue Department (IRD) has announced that individuals who fail to obtain a Tax Identification Number (TIN) face a penalty of Rs. 50,000.
It is mandatory for individuals aged 18 or above, or those who attain the age of 18 on or after January 01, 2024, to register with the IRD and obtain a TIN.
Those with an annual income exceeding Rs. 1.2 million are obliged to pay income tax.
Having a TIN does not automatically imply liability for income tax.
TIN is mandatory for activities like opening a current account, seeking building plan approval, registering a motor vehicle, renewing a license, and registering land title deeds.
Registration can be done online via the IRD website or by post/visiting the IRD offices.
The IRD emphasises that a PDF of the National Identity Card (NIC) should be uploaded for online registration, and a change of address requires supporting documents.