This article will specifically help you understand what a Taxpayer Identification Number (TIN) is; why you need to have one; and the exact steps and resources required to get it.
You will find it very beneficial if you own a business/organization in Nigeria, and you plan to build a corporate face or explore international opportunities.
You will also learn about the limitations you might face if you do not get your TIN.
PS: This post is particularly for TIN for small businesses or corporate bodies, not for individual taxpayers.
Content
- What is a TIN
- Why is TIN Important?
- Who Needs a TIN in Nigeria?
- How do I Go About Getting a TIN
- What Do I Need To Get TIN?
- Some Frequently Asked Questions
What Is a TIN?
A Taxpayer Identification Number or TIN is a unique number assigned by the Nigerian government to every registered business owner in the country, for the purpose of taxation.
Think of a TIN as a tracking/ID number allocated to each establishment for everything tax-related that they need to do.
Just like you have your account number, bank verification number, national identity number, etc., a TIN is a peculiar identity number for every taxpayer in Nigeria.
Why Is TIN Important?
A TIN is highly useful for business owners who want to take their establishment to a corporate level where the government officially recognizes them.
If you’re not interested in having your establishment acknowledged and endorsed as a corporate entity in Nigeria, then you may not be needing one.
Without a TIN, you will not be accountable as a taxpayer, which means you get to keep almost every profit or income from your business including the tax payments you could have given to the government.
Sounds smart right? But as they say, you can’t eat your cake and have it.
If you don’t have a TIN, your business is heavily restricted in its operations in Nigeria.
Below are some implications of not having a TIN in Nigeria in 2022:
- You cannot open an official bank account for your business, company, or nonprofit. Even if you have registered your establishment with the Corporate Affairs Commission, if you don’t get a TIN, you still can’t open a bank account.
- Your business or organization cannot qualify to access any governmental opportunities that arise for registered companies such as contracts, loans, grants, etc. This is rightly so since the government doesn’t have your records as a bonafide entity in their books.
- You need a TIN for various international dealings like corporate foreign exchanges, importation & exportation, licenses, etc., so without a TIN, your enterprise is exempted from many international opportunities.
What Kind Of Establishments Need A TIN In Nigeria?
Years ago, TIN was necessary for only registered companies, but recently, both small businesses and nonprofits are all required to have a TIN to enjoy optimal operations.
So, if your small or large-scale business or organization is something you view in a corporate light, then you need a TIN.
Worthy of note is that in July 2020, the Nigerian government announced here https://www.cac.gov.ng/tax-identification-number/ that every company that is registered under the CAC will get their certificate with their TIN printed on it.
So, if you registered your company after July 2020, then you have your TIN written on your CAC certificate.
Business names and incorporated trustees still need to apply for it because their certificates do not come with a TIN.
How To Get TIN In Nigeria In 2022
Firstly, to get a TIN for your establishment, you will need to have registered it with the CAC and obtained your certificate of registration. Only then can you be eligible to get a TIN.
Now, there are two ways to get your TIN in 2022. One is by applying for it online, and the other way is by visiting the FIRS office closest to you to apply in person.
Remember that the FIRS (Federal Inland Revenue Service) is the governmental body that oversees tax in Nigeria. If you need a TIN, they are the one you would be looking for; not the revenue service of any state.
How To Get TIN Online
FIRS has collaborated with the Joint Tax Board (JTB) to process services concerning TIN. So log onto https://tin.jtb.gov.ng/TinRequestExternal and fill in all the necessary information carefully and submit to get your TIN.
How To Get TIN In Person
The in-person method seems to be the more reliable method, so if you are unable to get it online, waste no time by going physically. This approach has worked for me and several other persons I know.
To begin the in-person procedure, you need to locate the closest FIRS office to you. This shouldn’t take more than a few days or a week to conclude. You can even Google for the one nearest to you.
Simply walk in and tell any officer you find inside the complex that you want to obtain your TIN.
At the FIRS office, you will be given some forms to fill which you’d submit along with other documents. The process is pretty much straightforward.
List of Things You Need To Get TIN
- The CAC registration certificate of your business or organization
- Application letter for TIN
- Supporting documents given to you by the CAC alongside your certificate
- Utility bill
- Valid identification such as a permanent voters card, Intl passport, or National ID
For all documents, endeavor to go with the original for sighting and two photocopies for submission. As of 2021, you get to submit only one copy, but I suggest you go with more so you’re prepared for any surprises.
Frequently Asked Questions
1. How Much Does It Cost To Get TIN?
Getting a TIN in Nigeria as of 2022 is FREE. You do not need to pay a dime to get your TIN.
2. How Long Does It Take To Get TIN?
It usually takes about 2- 5 working days. If anything, it should not take you more than a week. However, we know how these things happen around here, so brace up and don’t be surprised if it takes a little more than that.
3. How Do I Verify My TIN?
To ascertain that your TIN is accurate, log onto https://apps.firs.gov.ng/tinverification/ and select ‘TIN’ in the field provided for your choice of criteria. Enter your TIN where you see ‘value’ and then click on search for a response.
4. Must I Have TIN Before Opening A Corporate Account In Nigeria?
Yes. It is now mandatory for all corporate entities in Nigeria to get a TIN before opening a bank account.
