The Federal Inland Revenue Service (FIRS) is the agency responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government of Nigeria
List of Taxes in Nigeria
- Companies Income Tax (CIT)
- Personal Income Tax (PIT)
- Value Added Tax (VAT)
- Capital Gains Tax (CGT)
- Withholding Tax (WHT)
- Stamp Duties
- Custom and Excise Duties
- Education Tax (EDT)
- Petroleum Profit Tax (PPT)
TIN
The tax identification number (TIN) is a unique identifier for an individual or a company for the specific purpose of tax remittance. The TIN number is prepared by the tax office and issued to individuals or registered business / incorporated companies for proper identification and verification.
Non Individuals such as (Limited Liability Companies, Incorporated Trustees, Enterprises, Cooperative Society, MDAs, Trade Association etc) can register for their TIN
Why do I need a TIN?
As a business or individual, TIN is important because that is what shows that you are a registered tax payer in Nigeria, and as you know that tax payment is made compulsory, every company, business, individual must have their own unique tax identification number. After completion of registration with the tax office, the entity or individual is issued a TIN.
How much will it cost me to apply for my TIN?
Applying for TIN is totally free IF YOU DO IT ON YOUR OWN and if you have not incurred any tax penalty based on the time-frame given according to the LAW to obtain your TIN, either as an individual or as a company. There are no fees to be paid unless you intend to employ third parties to assist you in registering and obtaining the TIN.
Nigeria tax administration
This is carried out by the three tiers of government, namely, the Federal Government, the thirty-six States of the Federation and the Federal Capital Territory and the various Local Governments, through the machineries set up by the respective government.
The FIRS is the body statutorily empowered to administer and enforce the various tax laws in Nigeria at the federal level. The States’ Governments administer tax through the various State Boards of Internal Revenue, while the Local Government Revenue Committee of each State administers taxes at the local government areas.
REQUIREMENTS TO OBTAIN & ACTIVATE BUSINESS TIN ON FIRS TAX PROMAX
- Business Application Status/Memorandum of Association(MERMAT)
- Certificate of incorporation
- Utility bill which has the address of the business
- Means of identity of Director/Proprietor
- Business Stamp
- Written Application for TIN and Value Added Tax (VAT)
- Business active Email
How long does it take to obtain my TIN
The TIN generation process is real time and, in any case, should not exceed 48 hours after a TIN request has been submitted. TIN Request can be submitted online via https://tin.jtb.gov.ng
Corporate tax
This is also called corporation tax or company tax, is a direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities.
This is a tax imposed on profit of a company from all sources. It is one of the main taxes administered and collected by the Federal Inland Revenue Service (FIRS). It is a tax paid on the income of incorporated companies. Company’s Income taxes are regulated by the Companies Income Tax Act (CITA), Cap. C21, LFN 2004 (as amended). The rate on this tax is 30% of a company of total profit less all expenses for the period which a company reasonably incurred in generating the taxable profit.
Personal Income Tax (PIT):
This tax is imposed on income of individuals (employees), corporate sole or body of individuals, communities, families or trustees or executors of any settlement as the case may be. It also covers taxation of sole traders, partnership assessment, and taxation of estates. PIT is regulated by the Personal Income Tax Act Cap P8 LFN 2004 (as amended). The relevant tax authority responsible under the law to administer this type of tax may vary from the FIRS to the various State Boards of Internal Revenue.
