Tax Identification number (TIN) is a number issued by the Federal Inland revenue service for enrolling all working individuals and operating businesses to collect tax. TIN has become necessary if you want to get certain services from the Federal and state governments. It is important you get TIN not just as a responsible citizen but because your tax is required to maintain public infrastructure in the country. Tax Identification Number in Nigeria (TIN) is very important for businesses and entrepreneurs.
In this post, we will explain why you need TIN, benefits of TIN, how to process TIN for an individual and business. Let us go straight to the guide.
What's in this guide?
The Tax law and the Tax bodies
Laws brought tax agencies that operate in the state and Federal levels into being, and so their collection and enforcement activities are legal.
The tax law as amended include companies Income Tax Act 2020, personal Income tax Act 2011 and Value added tax act 2020 (Amendment). The Nigerian Federal Inland Revenue Service was established in 1943 to manage tax properly.
The body that regulate tax administration in Nigeria is the Joint Tax Board. While the Agency that issues TIN and Tax clearance certificate for businesses is the Federal inland Revenue Service (FIRS.)
At the state level, you have State Inland Revenue Service whose duties include issuance of Taxpayer ID and Tax clearance certificate to individual taxpayers.
Why do you need Tax Identification Number?
You need TIN for different reason some of which are listed as follows.
- You must present it when you apply for a government loan.
- You need it if you are a contractor that work for the government
- You need it to open a business account in a bank.
- Banks require it when you are processing a loan
- You must present it when you want an import or export trade license
- It is required for registration of a new vehicle.
- You need it to get your tax clearance, waiver or tax allowance or tax incentive
- You need it if you want to do capital importation to another country.
Documents You need for Personal TIN
If you work for yourself, the government, or a firm in Nigeria, it is your duty to pay tax as a good citizen. Below are documents you will need to process your TIN.
- Tax form
- Form of Identification – (Driver’s license, National Identification Number, International passport, or staff ID.)
- Company name and office address, home address, phone number, email address and any other information they need.
How to get tax identification number in Nigeria (TIN) for an Individual
Follow this guide to process and collect your tax identification number.
1. Visit FIRS office
Visit FIRS office near your office or home and obtain an application form. You will need to fill out three copies.
2. Fill application form
Fill the application form for your TIN and include your office address, phone number, email address, and other information they require.
3. Provide identification
Provide a form of identification. (You may use your driver’s license, National Identification Number, International passport, or staff ID.)
4. Return completed form
Return the completed form with copies of documents required and submit the same at the Tax Office.
Note that it could take up to 10 business days after submitting your application for Tax Identification Number in Nigeria. Processing time varies but when your tax identification number is ready, FIRS will notify you.
When you get the Tin you can validate it at FIRS website at https://apps.firs.gov.ng
Documents your business needs for TIN
If you own a business, then the business must have a TIN. See a list of documents below that you will need to process TIN.
- Tax registration form
- Copy of memorandum and articles of association
- Certificate of incorporation and particulars of directors
- Business commencement date, Form CO2 and CO6
- Business office address
- Email address and telephone numbers
- Utility bill as proof of address and other documents needed to fill the form.
How to get tax identification number in Nigeria for a Business
After registering the company with the Corporate Affairs Commission (CAC,) process the TIN because banks may ask for it during the opening of a Corporate bank account for your business.
You must register for income tax by going to the Tax office with original incorporation documents for sighting while you attach copies of the same documents to your application for TIN.
TIN is the company’s identification number for payment of tax to the federal government through the FIRS. FIRS will use the company’s audited financial statement to calculate tax owed each year.
Note that FIRS will register your company for Income Tax and Value Added Tax (VAT) at the same time, with the same documents.
Steps to get tax identification number in Nigeria for a Business
To register for income tax and get a Tax Identification Number (TIN) for your company follow these steps below:
1. Write application letter
Write an application letter with the company’s letterhead to the FIRS.
2. Visit FIRS office
Go to the nearest FIRS office near the company’s office address and submit the application letter.
3. Collect and fill TIN form
Collect TIN application form and fill. Usually they will give you three copies.
4. Attach needed documents
Attach a copy each of memorandum and articles of association, certificate of Incorporation, particulars of directors. Also state business commencement date, business office address, telephone number, email address and add a copy of utility bill as proof of address, and other documents needed to fill the form.
5. Submit form
Submit the form at the tax office and wait for the processing of your application.
You will get response from the Tax office within 10 business days. It could be more depending on your case or less. But when your company TIN is ready FIRS will contact you.
In this post we explained how to get tax identification number in Nigeria (TIN). You can get it by visiting a tax office close to you and filling out the form and submitting the required documents. It is that easy.
Besides, these days tax administration has become simpler due to electronic filing of tax. Individuals and companies applying for either TIN or tax clearance certificate can now check their status through the tax portal and make other online enquiries about tax matters.
Go now and get your TIN today.