Things You Must Know About Tax Identification Number (TIN) In Nigeria

Registering a business name, company or a Non - Governmental Organisation (NGO) is not an end in itself. Yes you heard me right… it is not the end to the entire process of registration. Over months of registering various kinds of businesses for clients, I have often discovered that once certificates of registration are presented to clients, they often back out thinking that they have done all that is needed to be done. This however is not the true position of the law as there is always the need to process tax identification number (TIN) thereafter.

What is TIN

It is an identification number given to all businesses and individuals in other to be able to pay their tax to the government. This number is generated electronically and usually assigned to the particular business name or individual that applied for it. It helps you keep all records of payments made to the government as taxation fees through government tax offices spread across the country.

What You Need To Know About TIN

You must know that without tin you cannot adequately carry out any business activity either by yourself or with another business organisation whatsoever. This will only bring about a dent of illegality as there will be no means of record or history of tax payment on the business or individual.

Furthermore, without TIN your business will not be able to have any account in its registered name, which will limit you from striking some deals. This is because most organised businesses would not want to ordinarily transact with any business that does not have its corporate account.  

Tax Offences

There are several offences but the two notable tax offences that are seen every day are:

• Non Registration for Taxes; and
• Refusal to file tax returns.

It is an offence to commence business without obtaining TIN. Where you commence business without obtaining your TIN, you will be in default for the period of time you operated your business without registration and will also be liable to prosecution under the law.  Penalty varies and may include being liable to pay the sum of #20,000 (Twenty Thousand Naira Only) as default fees and a further sum of #2,000 (Two Thousand Naira Only) for each day the default continues and imprisonment for six months.

How Do I Process My TIN

In other to process your TIN, you will need to have the following documents:

If it’s a business name, you need your certificate of registration, the form attached to the certificate and others…

For companies, you would need certificate of incorporation and other documents including FIRS Forms and application letter… The same also applies for NGOs. You may contact us at info@lawaccent.com for more information on the processes involved in obtaining your TIN.