The Lagos State Internal Revenue Service (LIRS) is about to merge the payer identification number (payer ID) of taxpayers in Lagos State with the tax identification number (TIN) of Joint Tax Board (JTB). LIRS announced its plan in a public notice on TIN registration dated 30 May 2019. The public notice applies to taxable persons in Lagos state. A taxable person could be an individual or a company.
When a taxable person registers for taxes and levies due to the Lagos State Government, LIRS will issue a unique payer ID to the taxpayer. The payer ID serves as a unique identification number for tax payment and tax profile. On the other hand, TIN is a unique identification number granted by the JTB to taxpayers for the purpose of tax remittance. However, JTB uses biometrics to capture taxpayer’s details which makes it easier to synchronize a taxpayer’s profile with other regulatory authorities. In addition, the issue of multiple payer ID will reduce when LIRS migrates to TIN while the process of registering taxpayers will be faster and easier.
Henceforth, taxpayers will be required to validate their Bank Verification Number (BVN) in order to transact on the Lagos State Electronic Banking System (LASG-EBS) platform. For instance, every employee shall be required to disclose their BVN on the application form for a tax clearance certificate. Taxable persons who are yet to register with LIRS, including self-employed individuals, shall also provide their BVN in order to create a Payer ID.
Some state tax authorities in Nigeria have already integrated the database of taxpayers in their state with the TIN module. Overall, LIRS integration with TIN will improve the exchange of taxpayer’s data with stakeholders in the economy.
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