|
Getting your Trinity Audio player ready... |
TIN refers to Taxpayer Identification Number whiles BVN refers to Bank Verification Number. For anyone seeking to start their business in Nigeria, TIN and BVN are two important things you must obtain.
On October 17, 2022, the Central Bank of Nigeria (CBN) which is the apex bank in Nigeria issued a draft guideline on contactless payment, stating that all bank account holders must link their Bank Verification Number (BVN) to contactless payment to ensure effective risk management process. Contactless payment simply means financial transactions done without physical contact. This guideline shows how important having a BVN is in Nigeria.
In this article, we would be looking at how to obtain one as well as a Tax Identification Number (TIN). Every registered business in Nigeria is required to get a Tax Identification Number to open a corporate account and pay for taxes. This also applies to individuals.
What is a Tax Identification Number?
Tax Identification Number is a unique number assigned to registered individuals or businesses for the purpose of paying taxes. The Federal Inland Revenue Service (FIRS) and Joint Tax Board (JTB) are the issuing body for TIN upon successful registration as a taxpayer.
Why is it Important to get TIN in Nigeria?
- It is a requirement for paying tax
- It is a requirement for getting tax clearance, waiver, and incentive
- It is a requirement for getting a government loan
- It is a requirement to open a personal and corporate account
- It is a requirement for import, export, or obtaining trade license
How to Obtain TIN for Individuals in Nigeria?
The applicant will have to visit the nearest FIRS office and complete the application form and submit. The application will then be forwarded to the relevant department for review and approval. For the JTB TIN, application can be done online on the JTB portal and gotten between 24 to 48 hours.
How to Obtain TIN for Non-individuals in Nigeria?
Application can be made on the JTB TIN registration portal by filling the required details on the form and thereafter the TIN would be emailed to the applicant within 24 to 48 hours. Application at the FIRS can be done physically at the nearest office. Due to the number of applications the FIRS has been getting, the time frame cannot be predicted but most times it comes in a week. Generally, the time frame for obtaining TIN can stretch for a long period depending on numerous issues.
What is a Bank Verification Number (BVN)?
BVN is a unique identification number for bank account holders in Nigeria and the issuing body is the bank. Individuals can obtain BVN at any bank.
What is the importance of BVN in Nigeria?
- It is required for opening bank accounts and carrying out banking operations.
- The aim of BVN is to verify the identity of customers and safeguard financial transactions
Conclusion
BVN and TIN are some of the important things required to carry on business successfully in Nigeria. You can always reach out to us for professional help.