Corporate Tax in 2026: Using CAC Numbers as NRS Identifiers

As Nigeria’s new tax framework took effect in January 2026, one of the most significant changes for businesses is how they are identified for tax purposes. Under the newly enacted Nigeria Tax Administration Act (NTAA), your Corporate Affairs Commission (CAC) registration number now serves as the foundation for your official tax identifier.

A Unified Tax Identification System

Previously, businesses had to endure a tedious process to obtain a separate Tax Identification Number (TIN) after registering with the CAC. In 2026, this requirement has been streamlined:

• For Companies: Your CAC Registration Number (RC Number) automatically functions as your identifier within the Nigeria Revenue Service (NRS) system.
• For Individuals: Your National Identification Number (NIN) serves the same purpose.
• The Result: A system-generated 13-digit Tax ID that links all your records together.

Why This Matters for Your Business

The shift to using CAC numbers is intended to:

1. Simplify Compliance: You no longer need to apply for a separate tax ID. Your business is “tax-ready” the moment it is incorporated.
2. Eliminate Duplication: This prevents the confusion of having multiple TINs across different state and federal agencies.
3. Improve Transparency: Linking tax records directly to the CAC allows the NRS to track corporate activity more effectively, reducing the “hidden” informal economy.

How it Works in Practice

From January 1, 2026, the NRS has fully integrated its database with the CAC.

• New Businesses: When you register a new company today, a 13-digit Tax ID is automatically generated.
• Existing Businesses: You do not need a “new” number, but you must retrieve your 13-digit identifier from the NRS Portal using your RC number to file returns or open bank accounts.

Benefits for SMEs and Corporations

For small and large companies alike, this reform means:

• Instant Onboarding: Faster access to tax clearance certificates (TCC).
• Reduced Paperwork: No more carrying multiple registration documents to the bank.
• Error Reduction: A single identifier reduces the risk of payments being credited to the wrong account.

This reform reflects a broader effort by the Nigerian government to modernize tax administration, reduce tax evasion, and ensure fairness in how taxes are recorded.