Bangladesh is one of the world's largest recipients of remittances. The Bangladeshi diaspora in the US, UK, and Middle East sends billions home each year. Bangladeshi nationals who earn US-source income — even temporarily — need an ITIN for proper tax documentation and to avoid unnecessary withholding before sending money home.
Bangladeshi Diaspora and US Income
The Bangladeshi diaspora in the United States includes professionals, students, workers, and entrepreneurs. Many earn US-source income while maintaining Bangladeshi citizenship and sending remittances home. US income sources include:
- Consulting and freelance work for US companies
- Investment income (stock dividends, bond interest) from US accounts
- Rental income from US properties
- Self-employment income
An ITIN ensures proper US tax documentation for all of these income types.
ITIN vs Green Card: Different Tax Situations
A Bangladeshi national with a Green Card is treated as a US tax resident and files taxes differently. An ITIN is for non-resident aliens — Bangladeshi nationals who are not US residents.
If you are on a US visa (work, student, business) and earning US income, your tax situation depends on your specific visa type and length of stay. ITIN Plus handles ITIN applications for non-resident Bangladeshis. Consult a US CPA for advice specific to your visa situation.
Remittance and US Tax: The Connection
An ITIN does not reduce the taxes you owe on US income — it is a Tax ID, not a tax reduction tool. However, it enables you to:
- File a US tax return and claim deductions that reduce your actual tax bill
- Recover excess withholding (e.g., FIRPTA withholding on real estate sales)
- Submit W-8BEN forms that eliminate unnecessary default withholding rates
More after-tax income means more available for remittance to Bangladesh.
ITIN Plus for Bangladeshi Diaspora
Whether you are in Dhaka or Dallas, ITIN Plus handles ITIN applications for Bangladeshi nationals. $99, 8–14 weeks, IRS Certified Acceptance Agent. Email apply@itinplus.com.
Frequently Asked Questions
Does a Bangladeshi diaspora member working in the US need an ITIN?
It depends on your visa status. Non-resident aliens (short-term visa holders) earning US income typically need an ITIN to file US tax returns. US residents (Green Card holders, long-term visa holders who meet the Substantial Presence Test) may use an SSN instead. Consult a US CPA for your specific situation.
Can remittances to Bangladesh be tax-deducted in the US?
No. Remittances to family in Bangladesh are not tax-deductible as a business expense under US tax law. However, having an ITIN and filing a correct US return ensures you don't overpay taxes, leaving more available for remittance.
Do I need an ITIN to open a US investment account as a Bangladeshi?
Yes. Many US brokerages require a Tax ID for account holders who earn dividend or interest income. An ITIN allows non-resident aliens to open US investment accounts and file the appropriate forms (Form 1040-NR for non-residents).
How long does it take to get an ITIN?
8–14 weeks from the IRS submission date. ITIN Plus handles the complete application for $99.
Can I send money to Bangladesh while my ITIN is being processed?
Yes. ITIN processing and international money transfers are completely independent. You can continue sending remittances via bank transfer, Wise, or Western Union while waiting for your ITIN to be issued.