Tax Identification Number (TIN)

For you to pay tax in Nigeria, you have to register with FIRS; then, you will be given a Tax Identification Number(TIN)

What is a Tax Identification Number(TIN):
It's a unique number given to you by the tax authority; it's used to identify an individual or business for tax purposes.

2. Provide appropriate tax returns:
What is tax returns?
The tax return is a form you file with FIRS; it shows income, expenses, tax liability, scheduled tax payments, or request for refunds for the overpayment of tax.

What is tax liability?
This is just how much you owe in taxes to the FIRS.

3. Obtain Assessment and Demand Notices:
After verifying your tax liability, FIRS will send you how much you owe, which is called an ASSESSMENT, after this has been made, they'll send a notice and demand for payment. This allows you to pay before they enforce payment.

4. Collection of E-tickets from banks:
There approved banks you should pay all the taxes you owe to. For example, First Bank is an authorized bank for collection.
After payment, you'll be given an electronic ticket (e-ticket).
You'll present this e-ticket to the FIRS to be given receipts.

5. Tax Clearance Certificate:
You can now use the receipts to process the tax clearance certificate.

What is a Tax clearance certificate?
It's proof that the government will give you satisfying the requirements of paying tax at a particular time.