What is a Tax Identification Number (TIN) and Why Do You Need One?

Whether you are a foreign business owner considering setting up a business in Singapore or an individual starting a new venture, you need to know about Tax Identification Number (TIN). It plays an integral role in your tax filing. This key component of Singapore’s tax system simplifies tax processes and financial transactions. In this article, we’ll give you an overview of what a tax identification number is, how to get a tax identification number, and its benefits.

Let’s dive in.

What is a tax identification number (TIN)?

So, what is a tax identification number?

A Tax Identification Number (TIN) is a unique 9-10 digit code issued by the Inland Revenue of Singapore (IRAS) for individuals and the Accounting and Corporate Regulatory Authority (ACRA) for businesses. A Singapore tax identification number ensures legal compliance with tax regulations, simplifies financial transactions, and facilitates tax filing. It also aids in streamlining tax monitoring and resolving tax discrepancies.

Similarly, TIN is essential for financial activities such as tax filing, opening bank accounts, making CPF contributions, and obtaining import and export permits. That is why it is crucial for business owners, as it helps with accurate record keeping.

Who needs a tax identification number?

A tax identification number in Singapore takes different forms for individuals and businesses. If you are a foreign business owner or investor, it’s good to understand the role of a tax identification number before you take the plunge.

For Singapore citizens and permanent residents, their National Registration Identity Card (NRIC) number, typically 9 alphanumeric characters, will serve as their TIN when they file their taxes or other tax-related matters. This number will also help IRAS identify them during the tax filing season.

On the other hand, the Ministry of Manpower (MOM) issues foreigners living and working in Singapore with a Foreign Identity Number (FIN). This number can be used for tax-related matters or other official documentation. If you are considering developing your career in Singapore, our immigration specialists can assist you with immigration matters, such as work passes.

After the incorporation of a company, ACRA will issue the company a Unique Entity Number (UEN) – a distinct identifier consisting of a specific alphanumeric combination. This number will serve as the company’s TIN. The format of this number will depend on the year of incorporation, entity type and issues agencies. It has become a standard identifier for the following entities:

• Businesses
• Local businesses
• Non-profit organisations
• Societies
• Associations in Singapore

How to apply for a tax identification number?

Given that having a tax identification number in Singapore is essential for compliance, the next question you may wonder is: how to get a tax identification number?

The process of applying for a TIN varies from individual to business. Here’s how you can apply for TIN.

Individuals in Singapore will automatically receive their TIN with their NRICs, whereas foreign nationals will obtain their TINs from the Immigration and Checkpoints Authority upon the issuance of work passes. While obtaining TINs as individuals seems relatively straightforward, applying for TIN is slightly different for businesses.

Businesses must register with ACRA to obtain their UEN, which serves as their tax identification number. Once received, the UEN becomes a permanent identifier for the entity, which is essential for engaging with external stakeholders and government agencies. The advantage of a UEN is that it does not require periodic renewal.

Where can you find your TIN?

It’s uncommon for businesses and individuals to struggle to find their TINs at some point during their engagement with government agencies and business transactions. If you find yourself in this situation, here’s how you can find your TIN:

• For business: It’s on the Certificate of Registration or Certification of Incorporation issued by ACRA.
• For Singapore citizens and permanent residents: It’s on their NRIC.
• For foreign individuals: It’s on their work or immigration pass.
• You might also ask, ‘How do I verify a tax identification number?’. To verify your company’s TIN or UEN, you can visit the Bizfile website and search for your company’s name. You can use Bizfile to check the authenticity of the UENs of other registered entities in Singapore.

Benefits of having a tax identification number

A tax identification number provides many benefits for businesses in Singapore, serving the following purposes:

• Engaging with government agencies: having a TIN helps streamline your work processes with various government agencies.
• Tax Filing: It is essential for individuals and businesses when filing their corporate tax returns or personal income tax returns with IRAS.
• Tax compliance: It ensures that companies adhere to Singapore’s tax regulations and allows the authorities to track their tax obligations accurately.
• Facilitating Financial Transactions: In addition to opening bank accounts, having a TIN will help you quickly enter contracts with your stakeholders and engage in commercial activities with other entities.
• Identification and verification: It helps IRAS and other government agencies accurately identify taxpayers, streamlining the administrative process and enhancing efficiency. Financial institutions may also require TIN as a form of identification and verification to ensure the applicant’s creditworthiness.
• Accurate record-keeping: The TIN helps maintain accurate records, primarily if your business provides import and export products and services. Government agencies, such as IRAS, will need clarity about money spent or generated from foreign sources to tax it accordingly.
• Accepting customer payment: Businesses can leverage their TIN as a payment outlet on a digital payment platform in Singapore. With the rise of contactless payment and to facilitate business transactions seamlessly, businesses can accept secure payment through PayNow, Singapore’s trusted payment service.

What to do if you lose your TIN

If you lose your TIN, don’t worry. Singapore citizens and permanent residents can apply for a replacement card through ICA. Foreign individuals will need to apply for a replacement through the MOM or ICA.

For businesses, you can check your official ACRA documents or purchase a new Certificate of Incorporation from ACRA, which contains your company’s TIN, for a nominal fee.

Choose Lanturn for your Compliance Needs

The Tax Identification Number (TIN) in Singapore is more than just a distinct identifier for your business. It is essential for tax compliance, simplifies tax filing, and facilitates financial transactions. However, with Singapore’s dynamic landscape, meeting filing deadlines and ensuring transactions are accurately reported can feel overwhelming.

At Lanturn, we understand these are the main challenges of launching a business venture in Singapore. Hence, we have a team of experts who specialise in tax compliance and can assist you in obtaining a TIN when incorporating your business. As you grow your business, we provide tailored support to manage your tax matters and financial reports, ensuring compliance and accurate records. With our proven track record of assisting over 600 companies with their incorporation and seamless cloud platform, you can trust us to handle the paperwork. At the same time, you can focus on scaling your business. Want to learn more about services? Speak to us today!