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
Originally published November 5, 2022
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.