A new bill has been introduced in Nigeria that will require individuals to present a Tax Identification Number (TIN) when opening or operating bank accounts, as part of efforts to enhance tax compliance and boost revenue collection.
The bill, titled “A Bill for an Act to Provide for the Assessment, Collection, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments”, mandates that individuals engaged in banking, insurance, stock-broking, or other financial services must provide a TIN to open new accounts or manage existing ones.
The proposed legislation, dated October 4, 2024, also targets non-resident individuals supplying taxable goods or services in Nigeria, requiring them to register for tax purposes and obtain a TIN.
However, non-residents with passive income from investments in Nigeria are exempted from registration but must provide relevant information.
The bill empowers tax authorities to automatically register individuals who fail to obtain a TIN and issue a notification of registration.
Failure to comply may result in penalties, starting with a fine of N50,000 for the first month of non-compliance, followed by a fine of N25,000 for each subsequent month.
This initiative is part of the government’s broader efforts to streamline tax processes and ensure compliance across various sectors.
