Navigating the Nigerian Tax System: A Guide to the 2026 Tax Reform and Getting Your Tax ID

2026 Tax Reform and a complete guide on how to get your tax id number in Nigeria represents a pivotal moment for individuals and businesses operating within the nation. The upcoming overhaul is set to simplify a historically complex system, aiming for greater fairness, transparency, and wider participation.

Understanding these changes, alongside the crucial process of obtaining your Taxpayer Identification Number (TIN), is the first essential step toward compliance and financial well-being in the new era. This article offers a complete guide to both the reform highlights and the step-by-step process of securing your indispensable tax identity.

Understanding the Key Changes in the 2026 Tax Reform

The Nigerian tax reform laws, scheduled to begin implementation in January 2026, repeal and consolidate all existing tax legislation into a harmonized system. The primary goal is to make the tax code easier to understand and apply. The changes affect personal income, corporate taxation, and the broader compliance framework.

Significant Relief for Individuals and Small Businesses

One of the most effective changes is the shift in the Personal Income Tax (PIT) structure.

1. The N800,000 Tax-Free Threshold: A major boost for low-income earners, the new law introduces a complete tax exemption for individuals earning N800,000 or less per annum (approximately N66,667 per month). This is designed to alleviate the financial burden on the most vulnerable groups and simultaneously widen the tax net by making the system more inclusive.

2. Progressive Tax Structure: For higher earners, a progressive system has been introduced with a maximum rate of 25% for the highest income bracket. The key principle here is fairness: only the income earned above each threshold will be taxed at the higher rate, ensuring that a professional or business owner does not face a punitive, sudden jump in their tax bill.

3. Small Company Tax Exemption: The exemption threshold for small companies has been significantly raised. Businesses with an annual gross turnover of N100 million or less (up from the previous N25 million) are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT), and the new Development Levy. This is a massive incentive for Micro, Small, and Medium Enterprises (MSMEs) and a clear boost for economic growth at the grassroots level.

Corporate and Investment Reforms

The new acts also bring substantial changes to how businesses and corporate gains are taxed:

1. Consolidated Levies into a Development Levy: The new law introduces a Development Levy at 4% of assessable profits for Nigerian companies (excluding small companies). This levy is a consolidation of several existing taxes, including the Tertiary Education Tax (TET), Information Technology (IT) Levy, National Agency for Science and Engineering Infrastructure (NASENI) levy, and the Police Trust Fund (PTF) levy. This simplification replaces multiple separate payments with a single, consolidated payment.

2. Increased Capital Gains Tax (CGT) Rate for Companies: To eliminate tax loopholes and arbitrage, the CGT rate for companies has been increased from 10% to 30%, effectively aligning it with the Companies Income Tax (CIT) rate. For individuals, capital gains will now be taxed at the individual's applicable progressive income tax rate.

3. Economic Development Incentives (EDI): The familiar 'pioneer status' tax holiday is being replaced with a new EDI. This offers an annual tax credit of 5% for five years on qualifying capital expenses made by eligible companies, motive specific capital investment and economic activity.

A Complete Guide on How to Get Your Tax ID Number in Nigeria (TIN)

The Tax Identification Number (TIN) is a unique 12-digit number that serves as the mandatory identity for every taxpayer in Nigeria, whether they are an individual or a company.

It is issued by the Federal Inland Revenue Service (FIRS) or the State Board of Internal Revenue (SBIR) through the Joint Tax Board (JTB) portal. A valid TIN is required for banking transactions, tax filing, import/export operations, and many other government services.

Step 1: Check for an Existing TIN

Before attempting a new registration, you must confirm that you do not already have a TIN. In many cases, a TIN may have been automatically generated and linked to your Bank Verification Number (BVN) or your Corporate Affairs Commission (CAC) registration.

How to Check:

JTB TIN Verification Portal: Visit the official JTB portal (you can easily find this by searching "JTB TIN Verification" online).
Search Criteria: Select your preferred search method. For individuals, this is typically your Bank Verification Number (BVN), Date of Birth, and Phone Number. For a company, you use the CAC Registration Number (RC/BN).
Result: If a valid TIN exists, the system will display your details and confirm the TIN.

Step 2: The Online Registration Process

If your search confirms you do not have an active TIN, you can proceed with the free online application through the Joint Tax Board (JTB) portal.

A. For Individuals (Personal TIN)

The process is straightforward and relies on synchronization with your existing identity documents.

Visit the JTB TIN Portal: Go to the JTB official website and look for the "Individual Request" or "TIN Application" section.
Input Core Details: The key details required are:
- Bank Verification Number (BVN).
- Date of Birth.
- First Name and Last Name (Must exactly match your BVN records).
Complete the Form: Fill in other required personal information, including your phone number and email address.
Submission and ID Generation: Submit the form. The system will process your application, and if successful, you will be issued a Request ID. Keep this safe.
Certificate Issuance: The TIN Certificate will typically be sent to your registered email address once the application is approved and verified by the relevant State Internal Revenue Service (SIRS). This process can sometimes take a few weeks, though fast-tracking options through tax agents exist.

B. For Non-Individuals (Businesses and Companies)

The process for businesses requires prior registration with the Corporate Affairs Commission (CAC).

CAC Registration is Mandatory: Ensure your business (Limited Liability Company, Business Name, etc.) is fully registered and you have your RC or BN number.
Visit the JTB/FIRS Portal: Go to the JTB website and select the "Non-Individual Request" option or apply directly via the FIRS TaxPro-Max platform.
Input Registration Number: Enter your RC, BN, or IT Number (Incorporated Trustees number) without any spaces. The portal should auto-populate the entity's name from the CAC database.
Provide Business Details: Complete the form with the company’s details, including a valid business email, phone number, physical address, and the precise nature of the business.
Submission and Verification: Submit the form and obtain the Request ID. The FIRS will process the application and, upon verification of all documents (which may sometimes require a physical submission of documents like the Certificate of Incorporation and utility bills at a local FIRS office), the TIN will be issued and the certificate sent to the registered email.

Step 3: Activating and Using Your TIN

Once your TIN is successfully verified and issued, it becomes your lifelong tax identity. You can use it to:

File your annual tax returns (Form A for employees, Form B for self-employed/enterprises).
Open and maintain bank accounts.
Process import and export documentation through the Nigeria Customs Service.
Apply for a Tax Clearance Certificate (TCC).

2026 Tax Reform and a complete guide on how to get your tax id number in Nigeria marks a new chapter for the nation’s economy, encouraging both compliance and investment. The reforms offer significant relief and simplification, while the mandatory TIN process establishes the necessary identity for every economic actor.

By proactively understanding these laws and securing your TIN today, you position yourself or your business to benefit fully from the system while avoiding penalties for non-compliance. Preparation is key to a smooth transition into Nigeria’s modernized tax era.Read more.