Tax Payer Identification Number
              
 
 
EXECUTIVE BRIEF ... Keeping you posted
 
Ref No: MOD/2010/01                                                                      Date: 15TH Jan. 2010  
 
 
A BRIEF CLARIFICATION ON TIN (TAXPAYER IDENTIFICATION NUMBER) AND U- TIN (UNIQUE TAXPAYER IDENTIFICATION NUMBER).
         
In view of the reports from the field offices that the acronyms TIN and U-TIN are being confused by FIRS staff and the general public, it has become necessary to issue a clarification on same. Both TIN and U-TIN are codes used to uniquely identify taxpayers within the existing Database. The only difference between the two acronyms is that, TIN refers to the Taxpayer Database on FIRS WEBPORTAL, while U-TIN is related to the National Taxpayer Database currently being developed by the Joint Tax Board (JTB) under the U-TIN Project. This clarification is further strengthened by the following definitions:
        
·         TIN is the acronym for Taxpayer Identification Number. It is a code that is electronically assigned to every tax payer registered within the FIRS database for the purpose of identification of taxpayers.
·         U-TIN is the acronym for Unique Taxpayer Identification Number. It is a code adopted by the U-TIN Project Committee to uniquely identify any taxpayer in the National Taxpayer Database which covers the three-tiers of tax administration.
 
 
 
 
 
 
BY ABUBAKAR B.T
Program Officer/Change Management & Communication (PO/CMC)

Get Your Taxpayer Identification Number, TIN Today 

What Is TIN?
Taxpayer Identification Number, TIN, is a number, unique to all corporate and individual taxpayers.

TIN is a unique 14 digit sequential number generated electronically as part of the registration process and assigned to a taxpayer: company, enterprise or individual for identification
 

Section 8(q) of the Federal Inland Revenue Service (Establishment) Act 2007 enjoins the Federal Inland Revenue Service (FIRS) to issue taxpayer identification number to every company, enterprise and individual in collaboration with the State Boards of Internal Revenue and Local Government Councils.
 

A Federal Government order contained in the government notice on Value Added Tax Act 1993 dated 25th May, 2007, ordered all current existing bank account holders to have a unique Taxpayer Identification Number, TIN, to be provided by the Federal Inland Revenue Service, in conjunction with states and local governments. 
 

To achieve this, consultations are ongoing with States and Local Government Councils to implement the full provisions of the law.

Commencement Date
The use of TIN has become mandatory from 1st February, 2008 for all taxpayers dealing with FIRS. All banks and financial institutions are to facilitate the implementation of the order on mandatory use of Tax Identification Number (TIN) by all current account holders in accordance with government notice
 

Banks are to direct every taxable person that wants to make payments through pay direct, that is FIRS web portal and has not been assigned a TIN number to visit the nearest FIRS Integrated Tax Office, Large Tax Office or the Regional Coordinator’s Office to be registered and assigned a TIN.
 

The TIN is mandatory for payments using the on-line payment system. TIN is also necessary for correspondence with regards to tax matters, all notices to FIRS, and in cases of tax refunds.
 

Other Uses of TIN
 
Corporate bodies and individuals are enjoined to obtain their Taxpayer Identification Number (TIN). It shall be required by each taxpayer when payments for the following taxes are being made to Collecting Banks.

Petroleum Profit Tax
Companies Income Tax
Capital Gains Tax
Education Tax
Value Added Tax
Withholding Tax – advance payment of tax except for non-residents.
Stamp Duties
National Information Technology Development Fund Levy
Personal Income Tax is restricted to:
Residents of Federal Capital Territory – Abuja
Persons employed in the Nigerian Army, the Nigerian Navy, the Nigerian Air Force, the Nigerian Police Force other than in a civilian capacity.
Officers of the Nigerian Foreign Service
A non resident person who derives income or profits from Nigeria.
 
 
*Note that TIN is not required for payments made with respect to Stamp Duties by companies that are in the process of Incorporation.

 

Minimum Requirement
In order to assign a TIN to a company, an enterprise or an individual, the following information should be volunteered to the nearest FIRS Integrated Tax Office, Large Tax Office or the Regional Coordinator’s Office.

 
For Companies:
Incorporation Number
Name of Company
Business Address
Registered Address
Line of Business
Date of Incorporation
Date of Commencement of Business
Financial year end

 
For Enterprise and Individual Taxpayers:
Name of Individual or Enterprise
Address of Business
Employment Status (Individual or Enterprise)
Employment Type (Police, Army, Consulate or other employment)
Identity Type (National Identity Card, International Passport or Driving License)
Identity Number
Line of Business
Date of Commencement of Business.
 
 
When the minimum information has been supplied, the system generates the TIN automatically.
 

Unique Taxpayer Identification Number (TIN) structure
The TIN structure and usage is as follows:
  • The first 9 digits represent the actual TIN for the taxpayer
  • The 10th digit represents the check digit
  • The last 4 digits represent the branch of the taxpayer
  • The Headquarters has a reserved code of 0001
  • The inheritance concept is adopted. Branch can only be created if and only if the Headquarters has already been created
  • Every unique TIN is attached to a tax office

 
Examples of Unique TIN
  • A conglomerate Bigi Bigi Plc with several branches, a registered Enterprise Ibrahim & Co. with a branch and an individual, Mr. Faruk Uko working at CITI Gate will have the following TINs.

Companies/Persons
Corporate TIN
Branch TIN for Hdqrs
Next Branch
Bigi Bigi Plc
0012345678
0012345678—0001
0012345678—0002
Ibrahim & Co
0023456789
0023456789—0001
0023456789—0002
Uko Faruk
0087654321
0087654321--0001
--
 

 
Why wait?
 
Get your unique Taxpayer Identification Number, TIN today!    
 
TIN is free!
 
Enquiries and clarifications:
Executive Chairman, FIRS or
Ag. Head, Field Operations, Policy and Programmes’ Department (FOPP), Revenue House, Headquarters, Wuse -- Abuja, Telephone Numbers 07028026887 and 07028390157.