PayPal is not officially supported in Bangladesh for personal accounts, but many Bangladeshi entrepreneurs and freelancers use business PayPal accounts linked to US entities. If your PayPal account receives US-source income, PayPal may require a Tax Identification Number. An ITIN is the correct ID for Bangladeshis who earn through PayPal from US clients.
PayPal and US Tax Reporting Requirements
PayPal is required by the IRS to issue a Form 1099-K to account holders who receive more than $600 in payments during a calendar year. For non-US persons, PayPal may also require a W-8BEN form — which needs your ITIN — to confirm you are a foreign national and not subject to US backup withholding.
If you operate a US LLC and use PayPal as a business tool, your EIN handles the tax reporting. But if you're using PayPal as an individual receiving US payments, an ITIN is the right identification number.
Bangladesh and PayPal: The Current Reality
Personal PayPal accounts are restricted in Bangladesh. However, many Bangladeshi entrepreneurs operate US LLCs and use PayPal Business accounts connected to those entities. In this case, the LLC's EIN covers PayPal reporting requirements.
If you receive royalties, consulting fees, or other US-source income through PayPal as an individual (not via LLC), you need an ITIN to complete W-8BEN and avoid backup withholding of 24% or more. ITIN Plus can help you get your ITIN in 8–14 weeks.
ITIN vs EIN: Which Do You Need for PayPal?
Use an ITIN if you are earning as an individual (sole proprietor, freelancer) from US clients and need to complete W-8BEN on PayPal. Use an EIN if you have a US LLC and are operating PayPal as a business account under that entity.
Many Bangladeshi entrepreneurs need both: an EIN for the LLC and an ITIN for their personal US tax identification. ITIN Plus can help you obtain both — the ITIN costs $99, and EIN service is available separately.
How to Apply Through ITIN Plus
Email us at apply@itinplus.com with your documents (passport, government ID, address proof). We handle Form W-7 preparation and submit directly to the IRS as an IRS Certified Acceptance Agent. No US travel required. Processing takes 8–14 weeks.
Frequently Asked Questions
Do I need an ITIN or EIN for PayPal in Bangladesh?
If you earn as an individual from US clients via PayPal, you need an ITIN. If you operate a US LLC with PayPal as a business account, your LLC's EIN handles the tax reporting. Many Bangladeshi entrepreneurs need both.
Will PayPal withhold taxes without my ITIN?
PayPal may apply backup withholding (up to 24%) if you cannot provide a valid Tax ID and certify your status with a W-8BEN. Providing your ITIN and a completed W-8BEN eliminates this withholding for foreign persons.
How long does it take to get an ITIN?
8–14 weeks from the date ITIN Plus submits your application to the IRS.
Is PayPal available in Bangladesh?
Personal PayPal accounts are restricted in Bangladesh. Business PayPal accounts connected to a US LLC are commonly used by Bangladeshi entrepreneurs. An ITIN is needed if you receive US income as an individual, while an EIN is needed for US LLC operations.
What is the cost of getting an ITIN?
ITIN Plus charges a flat fee of $99. No hidden fees. Includes document review, Form W-7 preparation, and direct IRS submission.