A Tax Identification Number (TIN) is a unique identifier assigned to businesses, individuals, and other entities for the purpose of tax administration. In Nigeria, obtaining a TIN is crucial for businesses to comply with their tax obligations. The process of obtaining a TIN can be done at both the Federal and State levels, depending on the scope of the business’s operations. The Federal Inland Revenue Service (FIRS) handles the TIN registration for businesses with federal tax obligations, while State Internal Revenue Service (SIRS) handles TIN registration for businesses for state taxes.

This article will guide you through the detailed process of obtaining a Tax Identification Number for businesses in Nigeria through both FIRS for federal taxes and Lagos State Internal Revenue Services (LIRS).

What is a Tax Identification Number (TIN)?

A Tax Identification Number (TIN) is an identification number used by tax authorities to track and monitor the tax obligations of individuals, businesses, or organizations. It is used for tax reporting, filing tax returns, and making payments to the relevant authorities.

Uses of Tax Identification Number

For businesses in Nigeria, obtaining a TIN is a prerequisite for:

Paying taxes (including Value Added Tax (VAT), Corporate Income Tax, and Withholding Tax)

Opening a corporate bank account

Engaging in business transactions that require tax clearance certificates

Participating in public tenders and contracts

Getting Tax Clearance Certificate (TCC)

Obtaining Licenses and Permits

TIN Registration with Federal Inland Revenue Service (FIRS)

The Federal Inland Revenue Service (FIRS) is responsible for the administration of federal taxes in Nigeria. If your business operates across multiple states or engages in federal tax obligations such as VAT, Company Income Tax, and other federal levies, you must obtain a TIN from FIRS.

Steps to Obtain a TIN from FIRS

Step 1: Register Your Business with CAC

If your business is newly registered, ensure that you have completed the registration process with the Corporate Affairs Commission (CAC). You need to have a valid CAC registration number before applying for a TIN.

But if your business is already registered with CAC, put together the business registration documents, including the Certificate of Incorporation and the Memorandum and Articles of Association (if applicable)

It should be noted the CAC issues a tentative TIN; however, the TIN issued by CAC is not valid until it is registered with FIRS.

Step 2: Obtain and Fill the FIRS Tax Payer Registration Input Form and TaxPromax update form with the following information:

• Business Name
• CAC Registration Number
• Tentative TIN issued by CAC (if any)
• Date of Incorporation
• Precise Nature of Business
• Business Address
• Contact Information
• Key Contact Persons (e.g., Directors and major shareholders) name and contact information

While filling the form, one should ensure to provide accurate information as any discrepancies can lead to delays or rejection of your application.

Below is an image of FIRS Tax Payer Registration Input Form:

Step 3: Submit the following Documents to the nearest FIRS office:

• Filled FIRS Tax Payer Registration Input Form
• TaxPro Max update form
• Copies of CAC Registration Certificate (Certificate of Incorporation)
• Proof of Address (e.g., utility bills)
• An application for registration

Step 4: Verification and Issuance of TIN

After submission, the FIRS will process your application. This can take a few business days, depending on the volume of applications being processed. You may be contacted by FIRS officials for further clarification or documentation. Once verified, your TIN will be issued. The TIN will be sent to your email.

TIN Registration with Lagos State Internal Revenue Service (LIRS)

The Lagos State Internal Revenue Service (LIRS) administers taxes at the state level. If your business operates primarily within Lagos State or has a taxable presence within the state, it is essential to obtain a TIN from LIRS in addition to the FIRS TIN. LIRS is responsible for taxes such as Personal Income Tax (for employees within Lagos State), Pay-As-You-Earn (PAYE), and other state taxes.

Listed below are the steps to obtain a TIN from LIRS:

Step 1: Visit the LIRS Website

The first step in obtaining a TIN from LIRS is to visit the LIRS official website using the link www.lirs.gov.ng

Step 2: Complete the TIN Registration Form

Navigate to the TIN Registration section of the website.

Fill in the TIN registration form with your business details, including:

• Business Name
• Nature of Business
• CAC Registration Number
• Business Address, and
• Contact Details

Similar to FIRS, accuracy is important at this stage.

Step 3: Submit Documents for Verification

The following documents may will be required for registration

• CAC Registration Certificate (for corporate entities),
• Identity documents for business owners or directors (e.g., National ID, Driver’s License),
• Proof of address (e.g., utility bill, lease agreement), and
• Other documents requested by LIRS from time to time

These documents will be required to verify the authenticity of the business and its registration with CAC.

Step 4: Verification and Issuance of TIN

Once you have submitted the online form and supporting documents, LIRS will process your application and upon successful verification, your TIN will be issued and sent to your provided email address.

Differences between FIRS and LIRS TIN Registration

While both FIRS and LIRS handle tax administration, they serve different levels of taxation.

FIRS TIN is for businesses with federal tax obligations, such as Company Income Tax, Value Added Tax (VAT), and Withholding Tax. This TIN is mandatory for all registered companies.

LIRS TIN is for businesses that are primarily operating in Lagos State or have tax obligations within the state, such as PAYE (Pay-As-You-Earn) for employees and state-level taxes.

If a business operates in multiple states, the may need to obtain both a federal TIN (from FIRS) and a state TIN for all the states the business in operating.

Conclusion

Obtaining a Tax Identification Number (TIN) is an essential step for businesses in Nigeria to comply with tax laws and operate smoothly within the economy. Whether you are applying through the Federal Inland Revenue Service (FIRS) for national tax obligations or through the State Internal Revenue Service (SIRS) for state tax compliance, ensuring you follow the correct steps and submit the appropriate documents is crucial to getting your TIN quickly.

Once your TIN is issued, ensure that you keep it safe and use it for all tax-related activities to avoid penalties or delays. With the right TIN, your business can engage in legal tax activities, access services, and fulfil its obligations to the government.

It is also advisable to engage the service of a professional to avoid any pitfall that may arise as a result of the complexity of the processes involved in TIN registration.

You may also read about obtaining a Tax clearance certificate (TCC) in Nigeria