Key Requirements To Get Tax Identification Number In Nigeria

Last updated on August 5th, 2023 at 09:30 pm

To enjoy government loans and funding in a bigger way, you need to show evidence of tax payment. It’s a WIN-WIN!

To make this possible you must apply for Tax Identification Number. At some point when filling a loan form, you’re requested to fill in your TIN.

In this guide, I’ll show you how to get Tax Identification Number for your business so that you are not left out of the various government loans being rolled out every day.

And if the online platform isn’t working for you, we’ll share with you the contact details of FIRS offices spread across Nigeria to obtain a TIN for your business or as an individual.

What is TIN?

TIN means Tax Identification Number. It’s a unique digit number that’s associated with every earner in Nigeria.

Typically, every Nigeria that has Bank Verification Number (BVN) and the National Identity Number (NIN) has TIN, very easy and simple, unfortunately, some Nigerians don’t know that they already have TIN.

• TIN is free
• It is a legal obligation of every Nigerian
• Paying taxes is mandated to all Nigerians and foreigners who residents in Nigeria

As mandated by the law, you are expected to pay tax of your earnings every year according to the new tax law in Nigeria.

You may want to ask: What’s the essence? Would it affect my loan application? Will it have a negative effect on my earning?

You don’t have to worry about these questions, check below some of the advantages of paying tax to Nigeria’s government.

Benefits of Tax Identification Number in Nigeria:

TIN is the proof you have to show that you are a registered taxpayer in Nigeria. In addition to that, TIN helps you to avoid double taxation because your payment can be traced and verified.

1. It enables you to apply for a government loan.
2. Some foreign-owned companies may ask you to produce it to get payment clearance
3. Do you need an import, export, or trade license? Then you need to have TIN.
4. You need a tax identification number if you are planning to import your capital from a foreign country.
5. You must have a TIN if you wish to open a business account. (corporate account)
6. It is a must when registering your vehicle
7. You also need a TIN to get tax clearance, allowance, waiver, incentive.

Requirements:

• Legal name (not alias or pet name)
• Means of identification (ID) e.g Driver’s license, National ID card, International Passport, Staff ID card.
• Physical address
• Your BVN or NIN (National Identity Number)
• Phone number
• Functional email address
• Functional phone number

How do I pay my tax in Nigeria?

Paying tax in Nigeria has been made easy through the use of technology. Anyone who wishes to remit his tax to the government can do so through the Federal Inland Revenue Service (FIRS).

FIRS is a government agency that is saddled with the responsibility of collecting and accounting for tax on behalf of the Federal Government.

Just as the FIRS is associated with the FG, the States Boards of Internal Revenue (SBIRs) are associated to the 36 state governments while the Local Government Revenue Committees perform similar functions at the grassroots level.

What is JTB?

JTB means Joint Tax Board. The Income Tax Management Act 1961 created the Joint Tax Board (JTB) charged to ensure uniformity of standards and application of Personal Income Tax in Nigeria.

Functions of FIRS

Below are some of the key functions of the Federal Inland Revenue Service

• FIRS collects tax on behalf of the government.
• It has the power to adopt measures to identify, trace, freeze, confiscate or seize proceeds derived from tax fraud or evasion.
• FIRS has the power to direct banks to restrict taxpayers’ accounts on the ground that such taxpayers have outstanding tax liabilities to settle.

With all these explainers, how can I obtain TIN online on FIRS?

How to obtain your Tax Identification Number on FIRS portal

This process is divided into two:

1. Individual
2. Non-Individual

Individual in relation to taxation in Nigeria

Every Nigeria is an Individual under this category and is expected to pay tax on his income or earning.

Individual include:

• Salary earner
• Market women
• Service provider
• Hawkers etc

Non-Individual in relation to paying tax in Nigeria

• Sole proprietorship
• Incorporated trustee
• Foreign companies
• Limited by guarantee
• Partnership business
• Private Limited Company
• Private Unlimited Company
• Public Limited Company
• Cooperative Societies
• Trade associations
• Business name etc

How to request TIN online (For Non-Individual)

Follow these steps to get your TIN online

• Step 1: Access the official portal of JTB at tin.jtb.gov.ng/TinRequestExternal
• Step 2: Fill the form by selecting organisation type, line of business, business registration number and registered name etc.
• Step 3: Provide details of directors: full name, phone number, email, address, shares. You could click add to provide details of other directors of the company.
• Step 4: Hit submit to generate your tax identification number (TIN).

Or simply use the FIRS TIN Verification System at https://apps.firs.gov.ng/tinverification/

Note: Your TIN has to be Join Tax Board TIN only

FIRS TIN Requirements for a Corporate Business

The latest update on FIRS official website says, Certificates of Incorporation of companies registered under Part A of CAMA now bear the Tax Identification Numbers (TIN) upon completion of business registration.

It is part of Nigeria’s policy on the Ease of Doing Business Initiatives launched by President Muhammadu Buhari, a committee chaired by Vice President Yemi Osinbajo

In a situation where your business was registered before the ease of doing business initiative, you can apply for TIN with the following documents at FIRS closer to you

• Certificate of Incorporation: CAC2, CAC7
• Utility bill of one of the directors
• Application letter on company letter headed paper
• The company seal (stamp)
• Memorandum
• Articles of Association
• Duly completed TIN Application form

Make photocopies of the above documents and ensure to take the originals along with you for verification purposes. They would be returned to you.

How to request TIN online (for Individual)

The process is quite different from the one outlined above, follow the process below:

• Step 1: As an individual, you need to visit the FIRS office closer to you or JTB branch near you
• Step 2: Tell the receptionist you need TIN
• Step 3: Fill the form that will be given to you.
• If the officer is charge has lesser tasks on his table, you should get it within a few minutes. Very easy.

Photo credit: Olga DeLawrence of unsplash.com