If you’re doing business in Nigeria or earning income there, you have to get a tax identification number TIN. The Federal Inland Revenue Service in Nigeria requires it. Don’t sweat it, though; getting a TIN is a straightforward process; just have your documents in order and apply online, in person, or through your tax agent. A TIN will make paying taxes smoother and help you avoid penalties.
We’ll go through everything you need to know to get your TIN number in Nigeria in 2024. From who needs one and how to apply, we’ve got you covered.
What is a Tax Identification Number (TIN)?
A Tax Identification Number (TIN) is a unique alphanumeric code issued to identify taxpayers. The TIN is generated by the Joint Tax Board for PIT, WHT on individuals, instruments and Stamp duties on individuals; while FIRS TIN is generated by the Federal Inland Revenue Service for all taxes. The TIN allows the government to identify taxpayers and match them to their tax obligations and payments.
A TIN can come in two formats:
- the 12-digit number issued by the FIRS (01234567-8999)
- the 10-digit number issued by the JTB (01234567).
The best way to acquire a TIN number online is to go through the JTB website. The registration process is free of charge. You should keep your TIN information safe, as it will be required for all your tax obligations and transactions going forward.
Why Do You Need a TIN?
As a Nigerian resident or business owner, you need a TIN for several reasons:
- It allows you to file tax returns and pay the correct amount of tax due. Without a TIN, you cannot file returns or make tax payments.
- It helps prevent tax evasion and ensures you pay the right amount of tax. The TIN links you to information on your tax obligations, income, deductions, and payments.
- It may be required to obtain government services like business permits, land title documents, etc. Some banks may also request your TIN to open corporate accounts.
- It establishes your identity as a taxpayer and provides access to tax administration services. With a TIN, you can log in to tax portals to file returns, make payments, and view your tax details.
In accordance with CIT Acts Section 10, Subsection 2, as amended by the 2019 Finance Acts. Banks in Nigeria are required to get Tax Identification Numbers (TINs) from both individuals and corporate organizations before opening an account for them. The clause also requires banks to ensure that all accounts opened previous to the Act submit such Tax Identification Number (TIN) information as a condition for the ongoing use of their bank accounts.
This is done to link the taxpayer banking and tax databases in order to improve tax compliance and simplicity of administration. This will also broaden the tax base to include more people and the informal sector.
Who Needs a Tax Identification Number in Nigeria?
As a resident of Nigeria, you are required by law to pay your taxes. To do so, you need a Tax Identification Number (TIN), also known as a taxpayer identification number. The TIN is a unique number issued to individuals and corporate organizations by the Federal Inland Revenue Service (FIRS) for the purpose of identifying taxpayers.
Individuals
If you earn an income in Nigeria, whether as an employee or self-employed, you need to obtain a TIN. This includes:
- Employees: If you work for an organization or company in Nigeria, your employer will require your TIN for tax deduction purposes.
- Business owners: As a self-employed individual or business owner, you need a TIN to file your business income taxes.
- Professionals: Professionals like lawyers, doctors, accountants, etc., who offer professional services need a TIN for their practice.
Companies and Organizations
All companies, partnerships, enterprises, and corporate organizations in Nigeria are required to obtain a TIN. Some examples include:
- Limited liability companies: All private and public limited liability companies need a TIN to file company income taxes.
- Partnerships: Partnerships like general partnerships, limited partnerships, etc. need a TIN for the partnership’s tax obligations.
- Non-profits: Non-profit organizations, charitable organizations, churches, mosques, etc., need a TIN despite being tax-exempt.
- Government agencies: Government ministries, departments, and agencies need to obtain TINs for their operations.
In summary, if you generate taxable income or operate a business in Nigeria, you need to obtain a TIN from the FIRS for tax compliance purposes. The TIN allows the tax authority to identify, access, and match your tax records for efficient tax administration.
Documents Required to Obtain TIN Number in Nigeria
To apply for a TIN number in Nigeria, you will need to provide certain documentation to verify your identity and eligibility. The specific documents required will depend on whether you are an individual or a business.
As a business owner, you’ll need the following before you can begin your TIN registration process:
- CAC certificate
- NIN card
The Corporate Affairs Commission certificate is most commonly used to determine the registration number, email address, and date of business commencement.
If you’re enrolling as an individual, all that’s needed in the right format is the following:
- Email address
- BVN number
Providing the necessary documentation will ensure a smooth TIN application process. If everything is in order, you will have your new TIN number before you know it.
How to Generate Tax Identification Number Online
In Nigeria, your TIN is administered by the Federal Inland Revenue Service (FIRS) and the Joint Tax Board (JTB). They are in charge of processing your individual registration, business registration, or corporation TIN. You will need your NIN or BVN number to complete this process.
How to Generate a Tax Identification Number Online for Individuals (Freelancers)
Tax payment is required for a freelancer who provides services and earns money on foreign platforms such as Fiverr. This freelance platform pays VAT costs in accordance with country rules. If you do not have a Tax Identification Number, you risk having your earnings taxed extra.
Individuals can apply for TIN online using their Bank Verification Number (BVN) To get a TIN as an individual, you need to have a NIN or BVN.
To register for TIN as an individual, click here or follow the steps stated below:
- Visit the TIN registration portal, tin.jtb.gov.ng
- Go to the [individual] section, click on it, and start creating your TIN request form
- You’re expected to fill in details like your BVN, date of birth, and name.
- The validation page comes up to confirm that the details are filled in correctly.
- The form page comes next, where you attach your passport and other necessary information that didn’t autofill from your database.
- Submit the document and take note of the reference number, which is useful for lodging complaints if need be.
Your request will be verified and approved. TIN Certificate will be sent automatically to the registered email.
How to Generate a Tax Identification Number Online for Non-Individuals (Businesses)
As a business owner, relying solely on your CAC certification is insufficient to fully secure your firm. A Tax Identification Number is required to ensure that your organization is compliant with government requirements.
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 or following the steps listed below:
- Login to the JTB website at www.jtb.gov.ng.
- Select the business option at the top to create a TIN request.
- Start filling out the form by selecting your type of organization.
- Input your business name and registration number as they appear on your CAC certificate.
- Automatically, other details appear, and you complete whatever’s left.
After successfully submitting the TIN request form, you get a notification with your request ID. Your request will be verified and approved. TIN Certificate will be sent automatically to the registered email.
How to Verify Your Tax Identification Number
You can check online to see if you have an existing TIN by clicking here or follow the steps below:
How to Verify TIN For Individual Taxpayers
- Step 1: Select your Date of Birth (Optional).
- Step 2: Select your preferred search criteria from the Select Criteria Dropdown-TIN or BVN or Registered Phone Number
- Step 3: Provide the appropriate value based on the search criteria in Step 2 above
- Step 4: Confirm you are not a robot by checking the reCAPTCHA Box
- Step 5: Click the Search button
How to Verify TIN For Non-Individual Taxpayers
- Step 1: Select the Organization’s Date of Incorporation (Optional).
- Step 2: Select your preferred search criteria from the Select Criteria dropdown-TIN or CAC registration Number or Registered Phone Number.
- Step 3: Provide the appropriate value based on the search criteria in Step 2 above.
- Step 4: Confirm you are not a robot by checking the reCAPTCHA Box.
- Step 5: Click the Search button
Note: To retrieve your full information, you need to provide your date of birth or the organization’s date of incorporation.
How long does it take to obtain a TIN number in Nigeria?
After successfully submitting your request form, it typically takes three weeks or less to receive your taxpayer ID. If you experience a delay that exceeds this time frame, please submit a request email to contactus@jtb.gov.ng as a reminder.
This reminder must include your request ID and business name or your name if it is an individual request.
How to Recover Your TIN Number
In the event of a loss, you can still recover your TIN online using the FIRS page at firs.gov.ng or the JTB website at tin.jtb.gov.ng.
The retrieval process is simple; you only need to enter your date of birth or CAC registration number on any of the websites. This process is dependent on the initial registration method and applies to everybody in the country.
Frequently Asked Questions About Tax Identification Number Nigeria
If you earn income in Nigeria, you need a TIN. This includes income from investments, freelancing, business, or any other source. The TIN allows the government to identify your tax obligations and ensure you pay the correct amount of tax on your income.
Here are some frequently asked questions and answers about Tax Identification Number Nigeria:
Is the TIN the same as a tax clearance certificate?
No, a TIN and tax clearance certificate are not the same. A TIN is simply a number used to identify you for tax purposes. A tax clearance certificate is an official document issued by the FIRS certifying that you have paid all taxes due. It is often required for important business transactions like opening a corporate bank account, bidding on government contracts, etc.
Do I have to renew my TIN?
No, a TIN does not need to be renewed. It is issued once and used for life. However, you will still need to file tax returns and pay income taxes annually as required. Failure to do so can result in penalties.
Does a TIN expire if not used?
No, a TIN does not expire, even if you do not use it for filing tax returns or other purposes. As long as you remain a taxable person in Nigeria, your TIN will remain valid.
Conclusion
Getting a Tax Identification Number Nigeria in Nigeria might seem complicated, but it’s really just about following the right steps. TIN registration helps build our economy and communities. We’re all in this together. When more people pay taxes, we will have better roads, schools, healthcare, and more. Do your part by getting a TIN; together, we can make Nigeria even greater.