NEW BILL PROPOSES MANDATORY TAX ID FOR BANKING AND FINANCIAL SERVICES IN NIGERIA
1. Proposed Bill Overview: A new bill has been proposed in Nigeria requiring individuals involved in financial services (banking, insurance, stockbroking, etc.) to provide a Tax Identification Number (TIN) as a condition to open or operate a bank account.
The bill is officially 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."
2. Objectives: This legislation aims to enhance tax compliance and improve the country's revenue collection system.
3. Non-Residents and Tax Compliance:
Non-resident persons supplying taxable goods or deriving income in Nigeria are required to register for tax purposes.
However, non-residents earning passive income from investments in Nigeria are exempt from registration but must provide relevant information.
4. Automatic Registration: The bill allows relevant tax authorities to automatically issue a TIN to individuals who are supposed to register but fail to do so. The authority will notify them of their registration.
5. Penalties: Failure to comply results in penalties: N50,000 in the first month of non-compliance and N25,000 for each additional month.
This bill is part of broader reforms for tax policy in Nigeria led by Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms.
1. Proposed Bill Overview: A new bill has been proposed in Nigeria requiring individuals involved in financial services (banking, insurance, stockbroking, etc.) to provide a Tax Identification Number (TIN) as a condition to open or operate a bank account.
The bill is officially 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."
2. Objectives: This legislation aims to enhance tax compliance and improve the country's revenue collection system.
3. Non-Residents and Tax Compliance:
Non-resident persons supplying taxable goods or deriving income in Nigeria are required to register for tax purposes.
However, non-residents earning passive income from investments in Nigeria are exempt from registration but must provide relevant information.
4. Automatic Registration: The bill allows relevant tax authorities to automatically issue a TIN to individuals who are supposed to register but fail to do so. The authority will notify them of their registration.
5. Penalties: Failure to comply results in penalties: N50,000 in the first month of non-compliance and N25,000 for each additional month.
This bill is part of broader reforms for tax policy in Nigeria led by Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms.