• Business - Economy
  • Updated: June 30, 2020

Businesses Can Now Get Tax Identification Number Through CAC

Businesses Can Now Get Tax Identification Number Through CAC

Obtaining the tax identification number has become easier as businesses will now receive the tax ID after registration with the Corporate Affairs Commission (CAC). This means businesses no longer have to depend on the Federal Inland Revenue Service (FIRS) for a tax identification number.

The government merged the business registration and collection of tax identification numbers in order to ease business operations in Nigeria. This will prevent the usual delay encountered by businesses seeking tax identification number, as the certificate offered by CAC will carry the tax ID.

“This is to inform our esteemed customers that as part of the ease of doing business initiative, certificates of incorporation of companies registered under part A of CAMA will henceforth carry tax identification numbers issued by the Federal Inland Revenue Service (FIRS),” the corporation said.

“This has dispensed with the need for companies to apply for the issuance of tax identification numbers from FIRS after incorporation.”

What You Need To Know About Nigeria's Ease Of Doing Business

Under President Muhammadu Buhari, Nigeria has been implementing various policies like the discount for micro, small and medium scale enterprises to register their products with the National Agency for Food and Drug Administration and Control (NAFDAC). The discount started in May and expected to last for six months.

Also, the CAC had offered to register micro, small and medium scale enterprises for N5000 between October 2018 to March 2019. The government had set up Presidential Enabling Business Environment Council (PEBEC) to detect challenges faced by businesses operating within Nigeria and resolve them in order to aid business growth and lure investments into the country.

The initiatives have been reflecting on Nigeria's ease of doing business as the country improved on the World Bank's ease of doing business ranking. Nigeria rose 15 places on the 2020 Doing Business Index to rank 131st last year, from 146th last year. This was 39 places rise since 2016 - the same period PEBEC was set up.

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