Taxpayer Identification Number: All You Need to Know

The First Inland Revenue Service (FIRS) is the government agency that is responsible for tax collection and remittance into the coffers of the Nigeria Government. To improve on their mandate, the agency brought forward TIN which means Taxpayer Identification Number. An innovation to help ease the collection of taxes and generate a database for taxpayers in the country. 

TIN is a good innovation that has proven successful over the years since it was put into use. We all understand the reasons for paying taxes, therefore it only makes sense that we are all aware of the data that will enable us to file and keep track of our taxes.

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We must understand what TIN includes and how it will help us as it is a component of the FIRS’ innovation. As a result, the post includes details that will enable us to comprehend what TIN is, how to obtain one and the advantages of doing so.

What is TIN?

TIN simply means Taxpayer Identification Number and it is a special number that is assigned to every registered taxpayer in Nigeria by the FIRS.

The number is not only for individuals but also for Companies to help ensure that they pay their taxes. Your TIN shows that you are a registered taxpayer and obeying your civic duties to the country. 

The taxpayer identification Number (TIN) has 11 digits where the first three indicate the TIN issuing office while the next seven digits are the unique set of digits assigned to the holder (individual or business).

Finally, the last digit is just for validation purposes. However, the former format for TIN was 12 digits before they changed to the latest format now.

History of TIN 

The Tax Identification Number (TIN) system in Nigeria dates back to the early 1990s when the government started putting several tax reform initiatives into place to enhance tax compliance and revenue collection.

The implementation of a TIN system was one of these steps, which was intended to make it simpler for the government to identify and trace taxpayers.

The Federal Inland Revenue Service (FIRS) first implemented the TIN system in 1992 as an identification number for people and enterprises for tax reasons. The TIN was created to act as a special identification number that would facilitate tracking and managing tax compliance for the government.

Before becoming required for all people and businesses to obtain a TIN to file their taxes and engage in other transactions with the government, the TIN was formerly voluntary.

The TIN system has grown in complexity and scope throughout time, reflecting the changing demands and expectations of the public, taxpayers, and other stakeholders. The implementation of the TIN system has increased tax compliance and improved the government’s attempts to collect income.

Benefits of TIN 

In this section, we will discuss the reasons why you should get your TIN as an individual and also if you are establishing or running a business in Nigeria. 

The following are the benefits of why you need to get your TIN as an individual and company.

• Tax Clearance: Having a TIN makes it easy and simple to get your tax clearance done anytime you want it. There is no way you get to do your tax clearance without having. your TIN. 
• Record Keeping: TIN is a unique number for each taxpayer hence you get to see your taxpayer records when you want them as the FIRS holds a database for you when you register and validate your TIN. 
• Filing for Tax Returns: You have the liberty to fill in tax returns as long as you have your TIN which shows your legitimacy as a registered taxpayer of the Federal Republic of Nigeria. In addition, you also have the access to file for other tax-related matters. 
• Register for Corporate Account: As a business owner, you can register for a corporate account with your TIN. 
• Apply for Government loans and grants: Businesses with TIN can get through with applications for grants and loans as it is one of the requirements in most cases.

How to register for your TIN 

The registration process for getting your TIN can either be online or offline. Also, there are not so many differences between the two processes. You can register for TIN and verify it through the JTB (Joint Tax Board). 

The Federal Inland Revenue Service (FIRS) and the 36 State Boards of Internal Revenue (SBIRs) formed the Joint Tax Board (JTB) to promote consistency and uniformity in tax administration and to improve cooperation between the various tax authorities.

The JTB is tasked with formulating policies and suggestions for the collection and administration of certain taxes, such as the Value Added Tax (VAT), Personal Income Tax (PIT), and Companies Income Tax (CIT).

Registering for TIN online as an individual or business owner 

As an individual, you need your NIN or BVN to use for registration for the TIN. Visit the JTB website to start your registration process and get your TIN and certificate in no time.  

When you begin registration, you will be prompted to either fill in your NIN or BVN. Once you complete that, you will fill out the provided application form. Note that it is important for you to fill in the correct information to avoid future problems. 

You will receive a confirmation email to attest that you have completed the registration and you will get your TIN and the TIN certificate too.

However, if you are registering your business, you are going to provide your CAC certificate to begin the registration process. However, if you do not have a CAC certificate then you need to register your business before you can begin the process.

After you provide your CAC certificate, you will fill in the necessary information in the application form provided. 

Furthermore, you can send an email to JTB if you did not get your TIN mailed to you and have waited more than a week. Ensure you add your tax request ID to the mail so the processing will be fast enough.

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How to verify your TIN 

You can verify your TIN on the JTB website with just two to three steps. For an individual, you can either use your BVN, NIN, or your registered phone number to verify your TIN on the portal. In addition, you will need to provide your date of birth as well.

On the other hand, if you want to verify your business, you will provide your CAC registration number, TIN, or registered phone number. However, the first required information is the date of incorporation of the business. 

Final Notes on Taxpayer Identification Number

TIN is a unique number dedicated to each registered taxpayer in the country. Every Nigeria that wants to pay taxes must have one.

The registration process is open for individuals and businesses and can be completed on the Joint Tax Board’s official website. Getting a TIN has its benefits and every taxpayer will enjoy them when they get their TIN.

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