ABUJA: The federal government has proposed A new bill that would make getting a Tax Identification Number a requirement for anybody working in banking, insurance, stock broking, or other financial services before they can open a new account or use an existing one.
The goal of this legislation is to improve tax compliance and the nation’s revenue collection process, according to the bill 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.
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The bill, obtained from the National Assembly and dated October 4, 2024, stated, A person engaged in banking, insurance, stock-broking, or other financial services in Nigeria shall make the provision of a tax ID, a precondition for opening a new account or operating an existing account.
This requirement is a part of larger initiatives to make sure that all people and organizations involved in financial transactions are correctly registered with the government.
The bill further states that a non-resident must register for taxes and get a Tax ID in order to sell taxable products or services to any individual in Nigeria or to receive revenue from the nation.
Non-resident people who basically get passive income from investments in Nigeria, however, will not be needed to register; instead, they would just need to supply the pertinent data as directed by the relevant tax body.
In addition, the proposed legislation gives the appropriate tax authority the ability to automatically register and issue Tax IDs to anyone who should have applied for them but didn’t.
Furthermore, the proposed legislation gives the appropriate tax authority the ability to automatically register and issue Tax IDs to anyone who should have applied for them but didn’t receive it
In such situations, the tax authorities must notify the person of their registration and the tax ID’s issue as soon as possible.