New bill: Tax identification Number a precondition for opening bank accounts<\/p>\n
By<\/p>\n
Sami Tunji<\/p>\n
A new bill has been proposed in Nigeria that will require individuals engaged in banking, insurance, stock-broking, or other financial services to provide a Tax Identification Number as a precondition for opening a new account or operating an existing one.<\/p>\n
According to the bill, titled \u201cA 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\u201d, this legislation aims to enhance tax compliance and improve the country\u2019s revenue collection process.<\/p>\n
The bill, obtained from the National Assembly and dated October 4, 2024, stated, \u201cA 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.\u201d<\/p>\n
This requirement is part of broader efforts to ensure that all individuals and entities participating in financial activities are properly registered for tax purposes.<\/p>\n
The bill also outlines that any non-resident person supplying taxable goods or services to any individual in Nigeria or deriving income from the country must register for tax purposes and obtain a Tax ID.<\/p>\n
However, non-resident individuals who derive only passive income from investments in Nigeria will not be required to register, although they must provide relevant information as prescribed by the relevant tax authority.<\/p>\n
The proposed legislation also empowers the relevant tax authority to automatically register and issue a Tax ID to individuals who should apply for one but fail to do so.<\/p>\n
In such cases, the tax authority is required to promptly notify the individual of their registration and the issuance of the tax ID.<\/p>\n
Failure to comply with these requirements may result in administrative penalties. According to the bill, a taxable person who fails to register for tax will incur a penalty of N50,000 in the first month of non-compliance, followed by N25,000 for each subsequent month.<\/p>\n
PUNCH<\/p>\n","protected":false},"excerpt":{"rendered":"
New bill: Tax identification Number a precondition for opening bank accounts By Sami Tunji A new bill has been proposed in Nigeria that will require individuals engaged in banking, insurance, stock-broking, or other financial services to provide a Tax Identification Number as a precondition for opening a new account or operating an existing one. According […]<\/p>\n","protected":false},"author":5,"featured_media":14002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7],"tags":[],"class_list":["post-21109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"yoast_head":"\n