Obtaining a Tax Identification Number is next after incorporation with the CAC

The tax identification number in Nigeria is a unique identifier for an individual or a company for the specific purpose of tax remittance. Individuals, Registered Business or Incorporated Companies for proper are expected to obtain a TIN for identification and verification. As a business or individual, TIN is important as it shows that you are a registered tax payer in Nigeria. TIN is usually requested for at various stages of contracting businesses for proper verification and assertion that the other party is a registered tax payer.

HOW CAN I GET MY TAX IDENTIFICATION NUMBER ONLINE IN NIGERIA?

An Individual or a corporate entity may apply for a TIN in the Federal Inland Revenue Service Office closest to the address of the individual and in the case of an entity, the registered address of the business. TIN Application can as well be done online but for some unforeseen issues, it is preferable to go to their office to apply.

The following are the steps involved in the application for a TIN:

Step 1:

Visit the nearest FIRS Office to your Registered Office Address and obtain a form for the application of your TIN and the required accompanying documents.

Step 2:

The form is to be completed by filling necessary details such as: name of company, registered address, date of incorporation, nature of business, date of commencement of business, particulars of directors.

Step 3:

Having completely filled the form, it is to be submitted with the required documents depending on the applicant either a Company or Enterprise/Individual.

For a Company:

  1. Upon completing the form, the following accompanying documents are to submitted with it:

  2. Two copies of the Certificate of Incorporation and the original for sighting;

  3. Photocopies of the Memorandum and Association of the Company;

  4. Application letter to be registered as a Vatable Person on the company letter head addressed to the Tax Controller of the FIRS Office;

  5. Utility Bill of the Registered Address of the company.; and

  6. Answers to a standard questionnaire on the company letter head also addressed to the Tax Controller of the FIRS Office with details including:

  • Registered address of the company,

  • Nature of business,

  • Date of commencement,

  • Accounting date,

  • Particulars of shareholders and Directors,

  • Auditor/ Tax Consultant,

  • Email address and Phone Number, and

  • BVN of Director.

For an Enterprise/ Individual:

  1. The form is to be completed by filling necessary details such as name of enterprise/ individual, registered address, date of registration, nature of business, date of commencement of business, particulars of proprietor/ individual.

  2. Upon completing the form, the following accompanying documents are to submitted with it:

  3. Two copies of the Certificate of Registration and the original for sighting;

  4. Photocopies of the Memorandum and Association of the Company;

  5. Application letter to be registered as a Vatable Person on the enterprise letter head addressed to the Tax Controller of the FIRS Office;

  6. Utility Bill of the Registered Address of the enterprise/ individual.

NOTE

The Company or Enterprise/Individual official stamp or seal must be affixed on the application letters and form in the space provided for same.

Step 4:

After completion of registration with the tax office, the entity or individual is issued a TIN. The application will usually take about 3 to 5 days.

FIRS TIN NUMBER

FIRS will issue a TIN in form of an approval of your registration as a vatable person. The effect of registration is that the vatable person is henceforth under an obligation to file all Tax Returns (Company Income Tax, education Tax, Value Added Tax, Capital Gains Tax where applicable) to the FIRS office. The Vatable person is also required to keep proper books of accounts, notify change of address, issue Value Added Tax Invoice for all sales, indicate TIN on all correspondences with the FIRS and file monthly VAT/WHT returns and Company Income Tax according to the Tax Laws.

FIRS TIN VERIFICATION

The TIN issued by the FIRS can be verified online Here

SAMPLE APPLICATION LETTER FOR TIN NUMBER IN NIGERIA 

Find Here sample application letter for Tax Identification Number and  Here Application for VAT registration. All letters must be on letterhead and duly stamped. Also take Stamp to FIRS office.


NEW SYSTEM AND OBTAINING THE TAXIDENTIFICATION NUMBER IN NIGERIA

The Corporate Affairs Commission and the Federal Inland Revenue Service have integrated part of their systems, thus, for business entities, upon registration with the CAC, a TIN is automatically indicated on the certificate. Thus, there is no requirement to manually register with the FIRS. However, for older companies that have been registered before the integration, an application still has to be made.

WHAT IS REALLY NEXT?

The Federal Inland Revenue Service (FIRS) mandates all taxable persons to immediately register for Value Added tax purposes upon commencement of business. The penalty for failure to register has been reviewed by the new Finance Act as follows:

1.      First month of default, from N10,000 to N50,000

2.     Subsequent months in which failure continues from N5,000 to N25,000.

 

We also advise clients to obtain a Tax Clearance Certificate within Six (6) Months of incorporation. At this stage, the FIRS does not request for stringent financial documentation.


JTB TAX IDENTIFICATION NUMBER

The Joint Tax Board (JTB) TIN is a 10-digit tax identifier which is designed to replace the FIRS TIN. It is uniform, unique and not limited to only FIRS taxpayers. The JTB TIN was developed to consolidate a national unified taxpayer’s database. In other words, taxpayers' information will be integrated into the central database, and various tax authorities can access the information.

Individuals can apply on the JTB website with NIN or BVN (Bank Verification Number) while Non Individuals such as Limited Liability Companies, can register for their TIN on the JTB website with Certificate of Incorporation and Director’s BVN or NIN, and a valid ID of Directors.


WHY SHOULD I OBTAIN A TIN?

The relevance of obtaining a TIN will be highlighted below:

  1. Banks require it when applying for loans as a government employee.

  2. It is a requirement to open a business account.

  3. TIN is needed for motor vehicle registration.

  4. It is needed for getting tax clearance, tax allowance, tax waivers and tax incentives.


SIDEBRIEF

We are a private one-stop shop that helps businesses and start-ups manage statutory and regulatory compliance, engage with regulators and stakeholders and automate recurrent compliance process. We understand that ease of doing business in Nigeria can be an illusion, but we are helping to change the narrative by letting businesses focus on their customers, whilst we focus on their compliance in Nigeria. We are able to help Companies with the process of obtaining Tax Identification Number in any part of Nigeria for just a token of N10,000 Only.

We are happy to discuss how we may help your business.

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