Technology has changed how businesses supply goods or services. A foreign company may not need to travel to Nigeria to complete a transaction with a consumer. Another name for a foreign company is a non-resident company. In this article, we will learn how to get tax ID (formerly TIN) for a non-resident company from the Nigeria Revenue Service (formerly the Federal Inland Revenue Service, FIRS).
Definition of a non-resident company
A non-resident company (NRC) is any company created by or under any law in force outside Nigeria. NRC is taxable in Nigeria if the NRC
- has a fixed base in Nigeria where the profit is attributable to it;
- habitually operates a business through a person in Nigeria or maintains a stock of goods in Nigeria from which a person makes regular deliveries on behalf of the company;
- derives income from Nigeria through digital operations and has a significant economic presence in Nigeria;
- involves a single contract for surveys, deliveries, installations, or construction;
- provides remote technical, management, consulting, or professional services to a Nigerian resident;
- has an artificial transaction with a related party.
Requirements to get NRS Tax ID (TIN) of a non-resident company in Nigeria
A non-resident company is subject to companies income tax where profits accrue in, are derived from, brought into, or received in Nigeria. Although NRC is registered overseas, the company will not be exempt from local taxes. In addition, the tax registration procedure of a foreign company differs from a company with foreign participation in Nigeria. The requirements for registering a non-resident company with the Nigeria Revenue Service (FIRS) are;
- Duly completed taxpayer registration form online on TaxPro Max
- Incorporation document
After submission, the NRS will review the non-resident company’s TIN application. The timeline for approving the tax registration depends on the revenue authority. Where the application is successful, NRS will assign a tax ID (formerly tax identification number TIN) to the taxpayer and grant access to the online platforms such as EServices and TaxPro Max.
Next steps
The relevant NRS office for all NRCs in Nigeria is the Non-Resident Persons Tax Office (NRPTO) in Ikoyi, Lagos State. Next, the NRC must file value added tax (VAT) and withholding tax returns electronically using TaxPro Max. VAT return is due every month, irrespective of whether a transaction occurred. A foreign company may file other returns such as companies income tax and payroll tax depending on the nature of transactions. Therefore, a professional review of the NRC activities can provide more guidance on the company’s tax obligations in Nigeria.