The Nigerian government has proposed a new bill mandating the use of a Tax Identification Number (TIN) for individuals engaging in banking, insurance, stock-broking, and other financial services.
This legislation, officially titled "A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters," aims to streamline tax administration across the country.
The bill stipulates that all individuals involved in financial services must provide a TIN as a prerequisite for opening new bank accounts or operating existing ones. This requirement extends to non-residents who supply taxable goods or services within Nigeria, necessitating their registration for tax purposes and acquisition of a TIN.
However, non-residents earning only passive income from investments are exempt from this registration but must still furnish relevant information to tax authorities.
The proposed legislation is designed to improve the efficiency of tax collection and ensure better accounting of revenues at federal, state, and local levels. By mandating TINs, the government seeks to close loopholes in tax compliance and increase transparency in financial transactions.
The bill also empowers tax authorities to automatically register individuals for a TIN if they fail to do so voluntarily, with notifications sent to inform them of their registration status.
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