Individuals who are business owners, work in private organizations, or in the civil service in Nigeria are expected to have the Tax Identification Number (TIN), as this is a form of identifying individuals and corporate organizations that are registered taxpayers in the country. It is impossible to open a corporate bank account or pay tax without having a tax identification number.
The Tax Identification Number (TIN) is described as a unique number that individuals, businesses, organizations, and companies receive for the purpose of paying tax. The number, which is generated and issued by the Tax Authority of the Federal Inland Revenue Service (FIRS) in conjunction with the Joint Tax Board (JTB), is to ensure that more people are captured in the tax net. Meanwhile, the State Inland Revenue Service is saddled with the responsibility of issuing taxpayer ID and Tax Clearance Certificates (TCC) to individual taxpayers.
Note that the TCC cannot be obtained without first having the TIN. Individual TINs can easily be generated using the Bank Verification Number (BVN) or National Identification Number (NIN), but registered businesses need to apply for the TIN. However, obtaining a TIN has now been made easy as it can be obtained online for free and without stress.
Also, banks in Nigeria, in compliance with the 2019 Finance Act (as amended), have made it compulsory for individuals and corporate organizations to obtain the TIN, seeing that the TIN is required before an account can be opened. The Finance Acts also require accounts previously opened to provide their TIN for continued usage of the accounts.
Importance Of TIN In Nigeria
Obtaining the Tax Identification Number is important for the following reasons:
- It is needed to obtain a government loan
- It is required for capital importation into a foreign country.
- A TIN is required to open a business account.
- It is a prerequisite for obtaining tax clearance, allowance, waiver, or incentive.
- It is needed to obtain an import, export, or trade license
- TIN is needed for vehicle registration.
Types of Tax Identification Number (TIN)
The creation of TIN is categorized into two, and these are:
- Individual Tax Identification Number
- Business Tax Identification Number
It is important to note that individuals are automatically assigned a TIN based on their BVN or NIN, which means these numbers come in handy while searching for the TIN online.
How To Generate TIN in Nigeria
TIN Registration Process for Individuals
To generate a Tax Identification Number (TIN) online for individuals, follow the steps below:
- Visit the Joint Tax Board (JTB) website.
- Fill in your date of birth.
- Choose a preferred search criteria from the drop-down menu. This could be your BVN, NIN, or your registered number.
- Fill in the figures for the items you chose. That is, if you selected NIN as outlined in Stage Four, fill in your NIN.
- Click on the reCAPTCHA icon to verify that you are human.
- Click on search to bring out your TIN.
TIN Registration Process for Companies & Enterprise
For Non-individuals, like Limited Liability Companies, Incorporated Trustees, Enterprises, Cooperative Societies, MDAs, Trade Associations, and so on, the TIN can be registered by following the steps below;
- The first step is to go to the JTB website at https://tin.jtb.gov.ng/TinRequestExternal.
- Complete the application form that appears.
- Fill out the form completely, especially the fields marked with an asterisk (*), which include: business registration number; business name registration certificate; business name; address, email, phone number; business sector; and date of commencement.
Some others are: the company’s business address; the certificate of incorporation; the location and date of incorporation; the director’s details; and an active email address.
Also, the Non-individual TIN can be searched online using the steps below:
Step One: First, go to the JTB verification portal (https://tinverification.jtb.gov.ng/Template/TINVerification).
Step Two: Fill in the date of incorporation of the company.
Step three: Determine your preferred search criteria.
Step Four: Fill in the number of what was selected in stage three. If you selected a CAC registration number, it should be typed in this format: BN1234 or IT1234 or RC1234 format.
Step Five: Verify you’re human by clicking on the reCAPTCHA
Step Six: Search for your TIN by clicking the search icon.
Once the TIN application has been filled out properly and submitted, the certificate will be automatically sent to the registered email address, or the hard copy can be collected at the FIRS Office.