Nigerian Companies and TaxPayer Identification Number (TIN)Tax Identification Number is crucial for Nigerian businesses

Nigerian Companies and TaxPayer Identification Number (TIN)

What is a TIN? TIN is the acronym for Taxpayer Identification Number. It is a number that give you a unique identity as a person or a company as rega

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What is a TIN?

TIN is the acronym for Taxpayer Identification Number. It is a number that give you a unique identity as a person or a company as regards payment of taxes. In Nigeria like almost every country, payment of taxes is a civic duty that is mandatory for every individual and company. We all need our unique TIN.

Why Companies Need a TIN

When a company is incorporated or registered as a limited liability company in Nigeria, it must a unique TIN because they are expected to make tax remittances.

Uses of TIN

So, we now know having a TIN is mandated by law. Here are other important things that your business will need a TIN to:

  • Open a corporate bank account
  • Tax Clearance Certificate as evidence of tax payment
  • Access Foreign Exchange (FX)
  • Register Company Vehicles
  • Apply for Government grant or loans
  • Apply for Trade Licenses to import and export
  • C of O Application etc

How To Apply For TIN

When your incorporated company wants to apply for a TIN at the Corporate Affairs Commission (CAC), visit the Federal Inland Revenue Service (FIRS) office nearest to your registered address. Their addresses can be found on the FIRS website
Visit them with the original and 2 photocopies each of the following documents of your company:

  • Application letter on company letter-headed paper
  • Filled TIN Application form
  • Certificate of Incorporation
  • CAC2 and CAC7 forms
  • Memorandum plus Articles of Association
  • Company seal
  • A Utility bill like PHCN bill or water bill

They will only sight the originals so don’t give them to the officer in charge, a copy of the documents will submitted to the FIRS, and the second copy is to be stamped and signed by an FIRS official as proof of your an application.

If your business is a registered business name meaning the registration number starts with BN and not RC, all you need to do is to apply for VAT registration, this will be used as your TIN number until you upgrade to a limited liability company.

Cost of obtaining a Taxpayer Identification Number in Nigeria

Application for your company’s TIN IS FREE if you handle it in-house. There is no need to pay any fee to obtain it or hire anyone to apply for it on your behalf.
If, you however choose to use a 3rd party’s service in obtaining it, then expect to pay.
Your bank MAY also help you. When we applied for our  TIN, First Bank of Nigeria just informed us to apply for a TIN while Stanbic IBTC Bank went ahead to give contact details of FIRS officials and their addresses. This was very impressive and of course we became more loyal to them.

Length of Time to get Your TIN

In a normal scenario, getting your TIN should be an instant thing or within 24 hours. However, it many FIRS offices are battling with backlogs due to poor technology and even mix up people’s TIN number as it was in our case.
So, it is a regular thing to wait for a few days to a few weeks so the earlier you start the better. Don’t wait till you need the TIN before you apply to avoid frustrating delay.

Conclusion

Payment of Taxes is your civic responsibility if your company does business or plans to do business in Nigeria so apply for your TIN.

Disclaimer

This information is for general informational purposes only. It is NOT a substitute legal advice.
DemandSupplier does not offer legal advice. We only provide economic and related information you can profit from on and business opportunities in Nigeria. Make sure you hire or consult a qualified lawyer in Nigeria. If you require legal advice, please consult with a qualified lawyer. If you need assistance in contacting a lawyer, watch out for our post on lawyers we recommend.

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