A new bill has been introduced in Nigeria that would require individuals involved in banking, insurance, stock-broking, and other financial services to provide a Tax Identification Number (TIN) before opening or operating any account. The legislation aims to enhance tax compliance and boost revenue collection across the country.
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 proposed law seeks to strengthen Nigeria’s tax system by making TIN a prerequisite for accessing financial services.
According to the bill, which was obtained from the National Assembly and dated October 4, 2024, all individuals involved in financial services in Nigeria must supply a TIN to engage with banks or other financial institutions.
Additionally, the bill outlines that non-resident individuals who supply taxable goods, services, or earn income from Nigeria must register for tax purposes and obtain a TIN. However, those who only earn passive income from investments will not be required to register, but they must still provide relevant information to tax authorities.
The legislation also gives tax authorities the power to automatically register individuals for a TIN if they fail to do so themselves. In such cases, the authorities would notify the person about their registration and provide them with their tax ID.
Non-compliance with the new rules would result in penalties, including a fine of N50,000 for the first month of non-compliance and an additional N25,000 for each subsequent month.
The bill, if passed, is expected to strengthen tax enforcement and improve Nigeria’s revenue collection efforts.
.png)
No comments:
Post a Comment