The Importance Of The Nigerian Taxpayer Identification Number (TIN) For Individuals And Businesses

The Nigerian Taxpayer Identification Number (TIN) is not just a random number; it is a vital tool for anyone engaging in business or financial activities within Nigeria. This unique identifier is assigned to both individuals and companies registered as tax-paying entities, ensuring that everyone contributes to the nation’s revenue system. The Federal Inland Revenue Service (FIRS) issues this number, which serves as a crucial part of a taxpayer's identity in the eyes of the law.

Understanding the significance of TIN is essential for anyone looking to navigate the financial landscape in Nigeria. It streamlines numerous processes, from opening a business account to applying for government loans. Moreover, the TIN is a requirement for several essential transactions, making it an indispensable element for business operations.

In this article, we will explore the TIN's role in Nigeria, including why it is necessary, who needs it, and how to obtain one. With insights from Kazeem Kayode Lawal, a seasoned tax professional, we will delve into the practical implications of having a TIN for both individuals and businesses. This knowledge will empower you to comply with tax regulations effectively and leverage the benefits associated with being a registered taxpayer.

The FIRS is responsible for assessing, collecting, and accounting for the money collected in taxes as well as other revenue accruing to the Nigerian government. Therefore, all Nigerian individuals and companies that sell products or services, work for the government, other public entities, private companies, or freelance systems are required by law to have a Taxpayer Identification Number (TIN).

In an interview with Kazeem Kayode Lawal, an experienced tax professional, he informed Legit.ng that the obligation to register and obtain a TIN extends to every person, including both natural and legal persons, irrespective of whether that person is exempted from paying taxes in Nigeria. Lawal clarified that legal persons pertain to corporate entities established through registration with the Corporate Affairs Commission (CAC).

He emphasised that the TIN serves as a unique identifier assigned to each person, playing a crucial role in facilitating the administration of their fiscal responsibilities.

How to get TIN number in Nigeria

Here is a look at the process, requirements, and benefits of getting the TIN.

Why do I need to get the TIN?

Here are some of the most common reasons you need to apply for a Tax Identification Number.

• It is required when you apply for a government loan.
• It is a must-have when you wish to open a business account.
• It is a must-have if you need an import, export or trade license.
• It is necessary when you register your vehicle.
• It is needed for getting tax clearance, allowance, waiver, or incentive.

Will I pay for the application?

No, the entire application process is free of charge. The application process is quite straightforward and only requires you to visit an FIRS office (for individuals). You will be asked to fill out the application form in three copies. You will not have to pay anything.

Things to note for TIN applicants and holders

Here is some important information for those looking to apply for their TIN.

• You must ensure the address and name lines include no more than 200 characters (per field).
• Ensure you provide the correct 11-digit phone number.
• Each applicant must provide an active email address.
• You need to fill out all the fields marked as * in the TIN application form.
• Only the official taxpayer can use his or her TIN (no third-party persons are allowed).
• Usually, you don’t have to apply for TIN if you are an incorporated trustee (but laws can change, so double-check this information at the FIRS office).
• Each Nigerian should get TIN if his or her business receives revenue.
• You can validate your TIN on the official FIRS site.

How to apply for TIN in Nigeria

How do I apply for a TIN? Typically, applicants are either individuals or companies. Here is how to get a TIN number for the different types of entities.

How does an individual apply for tax identification number in Nigeria?

Here is a look at how to get the TIN for individuals in Nigeria.

1. The applicant will have to visit the nearest FIRS office.
2. Ask for a TIN application form from the reception or customer service desk.
3. Complete the application form, ensuring you fill out every space with an asterisk symbol.
4. Append your signature on the document once you are done filling it out.
5. Ensure you have correctly attached all the documents that are required.
6. Submit it to the relevant person at the FIRS office.
7. Your application will be forwarded to the relevant department for review.
8. The FIRS will then contact you regarding the issuance of a TIN.

How companies get a TIN

Non-individuals such as limited liability companies, incorporated trustees, enterprises, cooperative societies, MDAs, and trade associations are required to apply for TIN online. Here is a look at how to get a Tax Identification Number online in Nigeria.

1. Visit the JTB (Joint Tax Board) TIN registration portal.
2. Enter the required details in the respective fields.
3. Make the respective selections that apply to your business and complete the application form.
4. After completing, click the 'Submit' button. You will be redirected to another page on which you will be required to upload the documents listed in the 'required documents' section of the page.
5. Follow the onscreen instructions and then proceed to submit the duly filled form.
6. The application will be approved once the information and documents you have provided have been verified.
7. The officials will then process the TIN for issuance. In case of any issues, the applicant will be contacted and asked to provide the correct information or documents.
8. After about ten business days from the date of application, your non-individual TIN will be emailed to the applicant. Keep in mind that this period might often stretch to about two months, depending on numerous issues.

Modern technologies implemented

Lawal highlighted the modern technologies implemented by the federal government to streamline the process for individuals and businesses to obtain a TIN. The list includes:

1. Every company in Nigeria needs to enrol on the TaxPro Max (an initiative by the FIRS for tax administration in Nigeria) and validate their TIN