Registration for TIN (Tax Identification Number) in Nigeria Made Easy
New Policy for TIN Registration in Nigeria
Registration for TIN (Tax Identification Number) in Nigeria is now easy. Before now, people usually complained about the stress they go through before they can register for TIN (Tax Identification Number) in Nigeria. If you happened to go to a particular office of the Federal Inland Revenue Service, the agency charged with TIN registration, you could face a lot of frustrations. You might be redirected to visit the office of the Federal Inland Revenue Service that is closest to your residence or the registered address of your business.
The registration for TIN and VAT registration are usually done simultaneously. While TIN registration is free, you can be asked to pay the sum of N25,000 (Twenty five thousand Naira) as penalty for late registration for VAT if it is not done within the six months of the incorporation or registration of your business. With the new Finance Bill 2019, small businesses with an annual turnover of 25 million Naira and below are no longer required to register for VAT nor file monthly VAT returns. But individuals and businesses still need to register for TIN.
In order to make the registration for TIN in Nigeria easy for businesses, the TIN registration is now done simultaneously with the business registration at Corporate Affairs Commission (CAC). This means that, if you are just registering a new business, you will no need to go through another stress of registration for TIN. Shortly after your business registration is successful, you will receive a letter in your email address which you indicated in the Business Registration Form that you submitted, informing you that you have been registered for TIN. In the letter, you will be intimated about the different taxes in Nigeria. Some of these tax may not be applicable to everyone of course. Find below the sample of the letter to expect after your TIN registration has been completed.
NEW TAX IDENTIFICATION NUMBER (TIN) NOTIFICATION
We are pleased to welcome you to the Joint Tax Board (JTB) and Federal Inland Revenue Service (FIRS), the Federal Agencies responsible for helping you achieve your business goals while meeting your tax obligation to the Government.
Please find here, your new Taxpayer Identification Number (TIN) – XXXXXXXXXX. The date of issue of your TIN is DD/MM/YYYY, and the Tax Authority is FIRS. Your TIN is Free.
We would also like to provide you some useful information and guidance in how to best manage this new and promising lifetime relationship.
What is this much talked about Taxpayer Identification Number – TIN
The TIN is a unique number allocated and issued to identify a person (individual or company) as a duly registered tax payer in Nigeria. It is for use by that tax payer ALONE. Registration for tax purposes is a legal obligation of every person who is required to pay tax in Nigeria.
Important information on Tax Filing:
Below are some of taxes to be paid by a Company at Federal (FIRS) and State (SBIR) levels.
| S/N | TAX TYPE | EXPLANATION | FEDERAL | STATE |
| 1 | Companies Income Tax (CIT). | Companies Income Tax (CIT) returns shall be filed not later than six months after the end of the Accounting Year or 18 months after incorporation of business whichever comes first. The tax is charged on companies at either 20% or 30%. The lower rate is for taxpayers with turnover below 1,000,000 in specified business lines | Applicable. Annually | NA*** |
| 2 | Withholding Tax | This is not a tax type parse but an advance payment of Companies Income Tax. It is charged on taxable payments at the rates of 5%, 10% or 15% | Applicable. As and when required based on chargeable transactions from Companies or MDAs | Applicable. As and when required based on chargeable transactions from Individuals and enterprises |
| 3 | Petroleum Profit Tax | This is the tax charged on upstream operations of oil companies at the rate ranging from 50% for PSC and 65.75% / 85% for JVC respectively for business within the first 5 years and those above 5 years. | Applicable. Monthly for installmental payments and filed once | NA*** |
| 4 | Value Added Tax | Note that you must file VAT returns and make payment not later than 21st of the month following the month of reporting | Applicable. Monthly | NA*** |
| 5 | Education Tax* | The tax is charged at 2% of assessable profit of companies | Applicable. Annually | NA*** |
| 6 | Capital Gains Tax* | The tax is charged on chargeable gains at 10% | Applicable. Annually for companies and MDAs | Applicable Annually for individuals and enterprises |
| 7 | Stamp Duties | The duty is charged on chargeable transactions / instruments at either Flat rate or Advalorem rate. Please visit www.stampyduty.gov.ng for Rates and how to pay | Applicable. As and when required based on chargeable transactions on Companies and MDAs | Applicable. As and when required based on chrgeable transactions on individuals and enterprises |
| 8 | Information Technology Levy* | This Levy is charged at 1% of the profit before tax of the following companies provided the turnover is 100 million and above:
|
Applicable. Annually | NA*** |
| 9 | Pre-OPERATION Levy (POL) | This is a levy charged on companies who request for Tax Clearance Certificate and have not commenced business after 6 months of incorporation. The first year is charged at 20,000 and subsequent years at 25,000 until the companies commence business. | Applicable when requesting for TCC after 6 months of incorporation | NA*** |
| 10 | Personal Income Tax (PAYE) | Personal Income Tax in respect of:
|
NA*** | Applicable. Annually and as defined by State |
| 11 | Business Premises Tax | Business Premises Registration fee in respect of:
|
NA*** | Applicable. Annually and as defined by State |
| 12 | Certificate of Occupancy fees on Lands | Certificate of Occupancy fees (R of O) on lands owned by the State Government in urban areas of the State. | NA*** | Applicable. As and when required as per transactions |
| 13 | Rights of Occupancy fees on Lands | Rights of Occupancy fees (R of O) on lands owned by the State Government in urban areas of the State. | NA*** | Applicable. As and when required as per transactions |
| 14 | Road Taxes | Various road related taxes levied by States | NA*** | Applicable. As and when required as per transactions |
| 15 | Market taxes and levies | Market taxes and levies where State finance is involved. | NA*** | Applicable. As and when required as per transactions |
| 16 | Name of Street | Name of Street registration fees in State Capital. | NA*** | Applicable. As and when required as per transactions |
| 17 | Withholding VAT(Citizen as an Agent of Government) | This is a VAT collection mechanism where every company is by law an agent of the Government in VAT collection. Company collects from their vendor and remits to FIRS | Applicable. As and when required as per transactions | NA*** |
For items 11-16, filing dates and rates vary depending on the State. Please check with the relevant State Board of Internal Revenue (SBIR) for other applicable taxes as well as your filing dates and rates.
Read Also: Checklist for Starting a Company
It is possible for you to file and pay all Federal taxes online. This can be done by completing the e-filling access application form, obtainable from (www.firs.gov.ng) which you should subscribe to and submit at your tax office.
To obtain your Tax Clearance Certificate (TCC), please go to our site and apply online once you have paid all your taxes, you will be updated on the status of the application.
For further enquiries, please contact:
Federal Inland Revenue Service (FIRS)
Taxpayer Service Department
15 Sokonde Crescent, Wuse Zone 5, Abuja
Phone: 09074444441, 09074444442 ; 09072111111; 09073777777
Email: taxpayer.service@firs.gov.ng
tpsa@firs.gov.ng
complaints@firs.gov.ng
enquiries@firs.gov.ng
servicom@firs.gov.ng
Website: www.firs.gov.ng
Joint Tax Board (JTB)
Head Office
Plot 1863, Lee Kuan Yew Street Asokoro District
(Off Mohammed Mahatir Street) Asokoro, FCT, Abuja
Phone: 08039187289
Email: enquiries@jtb.gov.ng