Recently in Nigeria, it is mandated by the new financial bill, which will be in effect by January 2020, for individuals and businesses to have a tax identification number. This is to broaden the tax net and to increase the efficiency of the Nigerian tax system.
Modern technologies have made the tax system a convenient one, as your TIN can be obtained at no cost and at your own convenience, right in your comfort zone. Recent automation of the tax process has increased the efficiency of the Federal Inland Revenue Service (FIRS), as the issue of individual and firms multiple taxations is practically resolved.
What Is a TIN?
Tax Identification Number is a unique number that makes both individual(s) and corporate bodies recognised by law as a registered taxpayer in Nigeria. Existing businesses and those that are newly launched are required by the Nigerian tax law to be registered for tax purposes. This Tax Identification Number is, therefore, a must-have for the successful existence and operations of businesses in this country.
It is essential to obtain a TIN as it is requested to perform and complete some important social and economic activities such as when filing a tax return or when claiming treaty benefits and it is required on a withholding certificate especially if the beneficial owner is claiming an exemption for annuities, effective attached income or tax treaty benefits.
There are steps to be taken in order to obtain your TIN.
The Joint Tax Board spelt out some procedures to be followed to make the generation of this unique number convenient on your own. This Board’s portal requires either of Bank Verification Number (BVN) or National Identification Number (NIN) as one of the prerequisites to obtain the Tax Identification Number (TIN).
An individual without any of these unique number cannot obtain a TIN. For corporate bodies, a Bank Verification Number (BVN) or National Identity Number (NIN) is not required as the requirement for corporate bodies differs from that of individuals.
It’s free of charge to complete & submit the official (legit) application form for TIN in this country. Besides, it’s a legal obligation of each Nigerian. You are expected to pay taxes if you reside & work in your home country.
You should also be familiar with the requirements.
Applying for Tax Identification Number (TIN) online in Nigeria is an easy process. To obtain this unique number, you are only required to fill an application form online, provide the relevant information and follow the due processes or steps as duly prescribed by the Nigerian Federal Inland Revenue Service and that’s all!
How to Apply for Tax Identification Number Online
For individuals, first of all, ensure you have a strong internet connection and follow these steps:
- Go to your preferred browser, (e.g. Chrome) and visit their official website.
- Provide your correct date of birth.
- Provide your National Identity Number (NIN) or Bank Verification Number (BVN).
- Type in your correct mobile number.
- Take a look at the reCAPTCHA Box that confirms you’re human and not a robot.
- Click the submit button and follow subsequent steps as required.
For Businesses, the requirements include the followings;
- Your registered business name.
- Registered address and principal location of the business
- Registered e-mail address of the business.
- Registered phone number of the business.
- Incorporation of the business.
- Date of commencement.
- Sector the business belong (e.g Banking sector).
- Relevant details of directors.
To generate a Tax Identification Number, it takes two days (i.e. 48 hours) after the submission of a Tax Identification Number request. Also, it is only an official taxpayer that can use his or her unique Tax Identification Number. That is, a third party cannot use your Tax Identification Number.
