The tax identification number (TIN) is a unique identifier for an individual or a company for the specific purpose of tax remittance. The TIN number is prepared by the tax office and issued to individuals or registered business / incorporated companies for proper identification and verification.
Table of Interests
What Is A (Tax Identification Number) TIN?
The TIN registration system is among the tax reforms presented in the Finance Bill by the Ministry of Finance. The Finance Bill which was passed by the National Assembly amends sections 33, 49, and 58 of the Personal Income Tax Act. I had to under line that cause it is Personal now and not just Business.
Meaning individuals are required to produce their TIN before they can operate new or existing bank accounts in Nigeria.
However, this provision is mainly for corporate customers. Banks would be required to obtain TIN from corporate customers as a pre-condition for opening or maintaining bank accounts. While this is the practice, the amendment gives a legal basis to the practice.
For individuals, two of the resolutions reached by the JTB at the meeting in July is empowering Nigeria Immigration Service to make it mandatory for the presentation of Tax Clearance Certificate (TCC) for issuance of immigration facilities. Issuing or renewal of international passports, for instance, would require the presentation of the TCC.
Secondly, the JTB resolved that the Federal Road Safety Corps (FRSC), Vehicles Inspection Officers (VIOs) and other agencies would enforce the presentation of Taxpayer Identification Number (TIN) as a requirement for the resolution of a road traffic offence.
Given the development, the FIRS is collaborating with the state internal revenue services to make the presentation of TCC a requirement for processing of drivers’ license and number plates.
The tax identification number (TIN) is a unique identifier for an individual or a company for the specific purpose of tax remittance. The TIN number is prepared by the tax office and issued to individuals or registered business / incorporated companies for proper identification and verification.
Why Do I Need TIN?
As a business or individual, TIN is important because that is what shows that you are a registered tax payer in Nigeria, and as you know that tax payment is made compulsory, every company, business, individual must have their own unique tax identification number. After completion of registration with the tax office, the entity or individual is issued a TIN.
Yes , I will have to stress on this information again.
Finance bill currently passed by NASS amends section 33,49,and 58 of all personal income tax. Hence individuals are required to provide Tax identification Number before the can operate a new or existing acct in Nigeria
The bill will take effect on the 2nd of 2020. This means banks will ask customers for TIN before accessing their bank account.
Apart from registration for TIN being mandatory, there is a long list of other things, which you need a TIN for:
- Opening a corporate/business bank account
- Government loans,
- Foreign exchange,
- Application for trade licenses,
- Import and export licenses
- Registration of motor vehicles,
- Application for certificate of occupancy, etc.
A TIN is also necessary to get a tax clearance certificate for your business. You will need this as evidence that you are paying your taxes as due.
Types Of TIN and Requirements
1. INDIVIDUAL/PERSONAL TIN NUMBER
(PLEASE ALSO NOTE I INCLUDED THE WORD “PERSONAL”)
It is expected that working class individuals or those who own a bank account are to have their personal TIN number bearing their names.
Requirements for INDIVIDUAL/PERSONAL TIN NUMBER
- A duly completed form at FIRS Office
- Full name
- Registered phone number
- Address
- e-mail address
- NIN or BVN (Best use NIN -National Identity Number.)
2. BUSINESS TIN
This is based on types of business, be it sole proprietorship, partnership, limited liability or Enterprise.
It is expected that they have their own TIN NUMBER separate from their PERSONAL TIN provided that they have Business bank account number.
Requirements for Business TIN Number
Depending on the business (Endeavor that your Business is registered with CAC before approaching FIRS Office).
- Name of Company
- CAC number
- Registered Office
- Business Address
- Precise Nature of Business
- Date of Incorporation
- Date the Company Commenced Business
- Accounting Date
- Name and Address of Banker(s)
- Particulars of Major Shareholders
- Particulars of Directors
- Name and Address of Auditors
- Name and Address of Tax Representative
- CAC number.
As part of the documentation, you are required to submit the following document:
- Two copies of Certificate of Incorporation. You are to bring the original for sighting.
- One copy of Certified True Copy of Memorandum and Articles of Association
- One copy of Form CAC 2 (CO2) and CAC 7 (CO7)
If your documentation is complete, you will then be issued Tax Identification Number (TIN). This can be completed immediately. At times, it may take few days depending on some factors such as the volume of application received, availability of power supply and access to network.
You are required to supply your Tax Identification Number (TIN) each time you have anything to do with the tax office. Tax Identification Number (TIN) is now one of the requirements for opening business bank account.
You will also be issued a permanent VAT registration number and this qualifies you to become a VAT agent. Your Tax Identification Number (TIN) and VAT registration number have to be displayed on all your invoices. Please note the Federal Inland Revenue Service now operates Integrated Tax Office which means that you can collect your Tax Identification Number (TIN) and VAT registration certificate in the same tax office. While individuals can handle this on their own, it is advisable that you engage a tax consultant to help you handle your tax matters
How Much Will I Be Charged For Applying For My TIN?
Applying for TIN is TOTALLY FREE IF YOU DO IT ON YOUR OWN and if you have not incurred any tax penalty based on the time-frame given according to the LAW to obtain your TIN, either as an individual or as a company.
There are no fees to be paid unless you intend to employ third parties to assist you in registering and obtaining the TIN. However, WATCH OUT FOR SCAMMERS.
How Long Does It Take To Obtain My TIN?
The TIN generation process is real time and in any case should not exceed 48 hours after a TIN request has been submitted. There would be an instant slip after successful registration.
Please bear in mind that Your BVN and NIN has your TIN automatically attached to it.
How To Apply A TIN
There are two methods to go about this: Online and going physically to their office.
1. Online Method
For Individuals
Individuals are automatically assigned with a TIN based on their BVN (Bank Verification Number) or NIN (National Identity Number). To get a TIN as an individual, you need to have a NIN or BVN.
ALSO READ:Â How to Check If Your National Identity Card (NIMC) is Ready for Collection
Non-Individuals
Non-Individuals such as (Limited Liability Companies, Incorporated Trustees, Enterprises, Cooperative Society, MDAs, Trade Association etc) can register for their TIN online by clicking here.
You can check online to see if you have an existing TIN by clicking  here.
2. How Locate FIRS Office Address Closest To You For TIN Registeration
Below is a link that contains the closest FIRS office near you.
Remember, TIN is Free.
