AI agents for business finance: what they can and can't do
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The short answer
A Nigerian company asks for your TIN because it must deduct withholding tax and issue a receipt that names you, and Nigeria's 2024 withholding regulations set a double rate where a payee has no Tax ID (summarised by Danol Partners). For individuals, the Nigeria Tax Administration Act 2025 regime lets your NIN serve as your Tax ID. Give your Nigerian Tax ID or NIN if you have one, explain that you are non-resident, and ask the client which rate it will apply before you invoice.
Why the question comes up
Nigerian companies that pay for services must usually deduct withholding tax at source and pass it to the tax authority. The payer then issues a receipt to you. Under the 2024 regulations, that receipt shows the recipient's name, address and Tax ID, the nature of the payment, the gross amount and the amount deducted (Danol Partners on Mondaq, 16 October 2024). The client's finance team cannot complete it cleanly without an ID, so it asks.
What the rules say about a missing TIN
The same summary of the Deduction of Tax at Source (Withholding) Regulations 2024 says that where a payee does not have a valid Tax ID, the rate is doubled for non-passive income such as fees. Separately, PwC's Nigeria withholding tax page (reviewed 29 May 2026) gives the rate for professional, consultancy, technical and management fees paid to non-residents as 10%, and says it is a final tax for non-resident companies.
What a payer does when the recipient is a non-resident with no Nigerian Tax ID is where practice varies. Some finance teams apply the non-resident rate; some apply the doubled rate to be safe. Ask the client, in writing, what rate it will apply and why. The difference is large on a big invoice.
| Example only | At 10% | If doubled to 20% |
|---|---|---|
| Invoice for consultancy | US$5,000 | US$5,000 |
| Withholding deducted | US$500 | US$1,000 |
| Paid to you | US$4,500 | US$4,000 |
Your options from Canada
If you already have a Nigerian TIN or NIN
An explainer on the Nigeria Tax Administration Act 2025, published by Premium Times via AllAfrica on 12 November 2025, says individuals' NIN serves as their Tax ID and that an existing TIN remains valid. If you have either, giving it to the client is usually the simplest route to a clean receipt in your name. Our Nigeria library covers the change in National Tax ID vs TIN, and getting a Nigerian TIN while in Canada covers the steps from abroad.
If you have no Nigerian ID
Tell the client you are not resident in Nigeria and do not hold a Nigerian Tax ID, and ask how it will treat the payment. Some clients accept a declaration of non-residence and your Canadian address. Do not hand over your Canadian Social Insurance Number to satisfy a Nigerian form; it is not a Nigerian Tax ID and is sensitive personal information. If you have a Canadian business number for GST/HST, you can show it on invoices, but it does not stop Nigerian withholding.
If you invoice through a company
If you trade through a Canadian corporation, the client is paying the company, and the company's details go on the receipt. The non-resident corporate rates apply; check them with the client.
What a proper withholding tax receipt should show
Under the 2024 regulations as summarised by Danol Partners, the receipt the payer issues should carry:
- your name and address, as the recipient;
- your Tax ID, if you have given one;
- the nature of the payment (for example, consultancy fee);
- the gross amount paid;
- the amount of tax deducted; and
- the month of the deduction.
Check each receipt against your invoice. A receipt in the wrong name, or one that shows a different gross amount, weakens any claim for foreign tax credit in Canada, so ask for it to be corrected while the client's finance team still remembers the payment.
Steps when the request arrives
- Reply that you are non-resident in Nigeria and say whether you hold a Nigerian Tax ID or NIN.
- Ask which withholding rate the client will apply, and get the answer in writing.
- Re-check your quote: if the rate is higher than you priced for, agree a gross-up or a net fee before invoicing.
- Put the agreed tax treatment in the contract or purchase order.
- Diary a reminder to collect receipts after each payment.
Protecting your net income
- State in the contract whether fees are gross or net of withholding tax.
- Agree the rate before the first invoice, not after the money lands.
- Ask for a receipt for every deduction; without it you cannot support a foreign tax credit claim on your Canadian return.
- Keep the client's confirmation of the rate with your records.
On the Canadian side, the gross fee is your income, and Nigerian tax deducted may be claimable as a foreign tax credit under the Canada–Nigeria double taxation agreement, in force since 16 November 1999. This is information, not tax advice; the credit you get depends on your return.
Where Pryme fits
A Pryme Business Account, opened from Canada, can receive the net payment in naira or dollars, and you can issue a matching receipt through our partner VerifyDoc.ai (receipts) and keep invoices tidy with Pryme invoicing. For the arithmetic of withholding on your fees, see Nigerian WHT on consultant fees.
Questions people ask
Why does my Nigerian client need my TIN?
To deduct withholding tax and issue a receipt naming you. The 2024 regulations require the receipt to show the recipient's Tax ID along with the gross amount and tax deducted.
What happens if I do not have a Nigerian TIN?
The 2024 withholding regulations double the rate where the payee has no valid Tax ID, according to a Danol Partners summary. Practice for non-residents varies, so ask the client which rate it will apply.
Is my NIN my Tax ID in Nigeria?
Under the 2025 tax administration regime, individuals' NIN serves as their Tax ID and existing TINs remain valid, according to a November 2025 explainer.
Should I give my Canadian SIN to a Nigerian client?
No. A SIN is not a Nigerian Tax ID and is sensitive. Explain that you are non-resident and ask how the client will treat the payment.
Sources
- Mondaq (Danol Partners): Overview of the Deduction of Tax at Source (Withholding) Regulations 2024 (16 Oct 2024) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- AllAfrica (Premium Times): explainer on Tax ID under the Nigeria Tax Administration Act 2025 (12 Nov 2025) · accessed Oct 2026
- Publications.gc.ca: Canada–Nigeria agreement for the avoidance of double taxation (signed 4 Aug 1992, in force 16 Nov 1999, CTS 1999/48) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.