A new bill has been introduced in Nigeria proposing that individuals involved in banking, insurance, stock-broking, or other financial services must present a Tax Identification Number before opening or operating an account.
The bill aims to boost tax compliance and streamline revenue collection in the country. It mandates that anyone in financial services in Nigeria must have a tax ID to conduct account operations.
This requirement is part of a larger initiative to ensure proper tax registration for all individuals and entities engaged in financial transactions.
The bill also specifies that non-resident persons providing taxable goods or services in Nigeria or earning income from the country must register for tax purposes and acquire a Tax ID.
However, non-resident individuals earning passive income from investments in Nigeria are exempt from registration but must provide necessary information to the tax authority.
Furthermore, the bill grants the tax authority the power to automatically register and issue a Tax ID to individuals who fail to apply for one, with prompt notification to the individual.
Non-compliance with these regulations may lead to administrative penalties. The bill stipulates that a taxable person failing to register for tax will face a penalty of N50,000 for the first month of non-compliance, followed by N25,000 for each subsequent month.