Banks to request Tax Identification Number before opening bank accounts

In the Federal Government drive to increase non-oil revenue, Deposit Money Bank (DMBs) will soon be made to request for Tax Identification Number (TIN) before opening bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts.

This is one of the provisions of the new Tax Amendment bill that has passed second reading in the senate.

Also, the bill allows for the introduction of thin capitalization of 30 per cent of Earnings before interest, tax, depreciation and amortization (EBITDA). Any expense incurred to earn exempt income will now be specifically disallowed as a deduction against other taxable income, while Dividend distributed from petroleum profits will now suffer 10per cent withholding tax.

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Nigerian senators on Wednesday passed a tax bill that they have not seen and are not fully aware of its content.

The approval given on Wednesday by the Senate is the second in a series of legislative and executive steps to make the bill become law. The bill was read for the first time at the Senate on Tuesday.

On Wednesday, at least two senators complained, wondering how they would debate and pass a bill whose content they do not know. Senate President Ahmad Lawan overruled both senators.

The Senate then passed the second reading of the bill that seeks to increase the value-added tax (VAT) from five per cent to 7.5 per cent.

No copies of the bill were shared to senators to allow for any meaningful contribution before it was debated and passed.

President Muhammadu Buhari had, in October, presented the bill to a joint session of the National Assembly for consideration and passage into law. He made the presentation of the Finance Bill alongside the 2020 Appropriation Bill.

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