Ever wondered what TIN means? 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.
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.