A new bill proposed in Nigeria mandates that individuals involved in banking, insurance, stock-broking, and other financial services must provide a Tax Identification Number (TIN) as a prerequisite for opening or operating bank accounts.
The new bill 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,” the legislation aims to improve tax compliance and enhance the country’s revenue collection.
According to Naijassador, the bill is dated October 4, 2024, and this requirement is part of broader efforts to ensure proper tax registration for all individuals and entities engaging in financial activities.
Additionally, non-resident persons supplying taxable goods or services in Nigeria or earning income from the country must also obtain a TIN, except those deriving only passive income from investments.
The bill empowers tax authorities to automatically register individuals who fail to obtain a TIN, notifying them of their registration. Non-compliance carries penalties, including an N50,000 fine for the first month and N25,000 for each subsequent month of failure to register. This legislation underscores Nigeria’s commitment to improving tax collection and compliance across all sectors.
