Anewly proposed bill in Nigeria mandates that individuals involved in financial services, including banking, insurance, and stock-broking, must provide a Tax Identification Number (TIN) before opening a new account or operating an existing one.
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,” the proposal aims to enhance tax compliance and streamline Nigeria’s revenue collection process.
The bill, dated October 4, 2024, and obtained from the National Assembly, stipulates that any person engaged in financial services must present a TIN to ensure proper tax registration. It also extends to non-residents supplying taxable goods or services or earning income from Nigeria, requiring them to register for tax and obtain a TIN.
Non-residents earning income solely from passive investments are exempt from this requirement but must still provide necessary information as per tax authorities’ guidelines. Additionally, the bill gives tax authorities the power to issue a TIN automatically if an individual fails to register, with penalties for non-compliance set at ₦50,000 for the first month and ₦25,000 for each subsequent month of failure to register.
