A Tax Clearance Certificate (TCC) is a document stating that an entity does not owe tax for a period of time specified in the certificate. The tax clearance certificate indicates that one has been cleared for a period of time because it has paid its taxes.
The body or agency of government responsible for issuing TCC in Nigeria is the Federal Inland Revenue Service (FIRS) at the federal level for only companies and the State Inland Revenue Services at the state level for individuals within their respective states.
TCC is issued in arrears over the course of three years. You need to have rendered your tax
returns to the relevant authority over the course of three years to be eligible for a tax clearance certificate in Nigeria. TCC serves as proof of compliance with tax regulations, enhances credibility, and provides access to business opportunities including government contracts.
Recommended reading: how to register your Business with
How Do I Apply for a Tax Clearance Certificate?
The FIRS has recently migrated to a new online TCC application portal called TaxPromax. All
taxpayers i.e. including those whose TCC applications are still being processed under the old platform are required to apply by submitting a taxpayer data update form which replaces the old paper and manually processed TCC. To apply for Tax Clearance Certificate online, follow these
steps:
● Visit https://tcc.firs.gov.ng/taxpayer/login use the credentials to log into your account.
● Locate and click on the link for applying for a Tax Clearance Certificate.
● The application form will be opened; fill it out with all of the requested information and
upload any required documents as stated above.
● Then, by clicking the appropriate button, submit the application. Following submission,
the application and supporting documents will be examined for verification.
● The application will be approved once the verification and validation processes are
completed.
● The certificate will be issued and you can download your TCC.
The documents required for TCC application for companies are outlined below:
1. Application for Tax Clearance Form
2. Taxpayer registration input form
3. Completed FIRS questionnaire for new taxpayers on the Company’s Letter Head
addressed to the Tax Controller
4. Copy of memorandum and articles of association
5. Copy of the certificate of incorporation.
6. CAC Form 1.1 (for companies and business names)
7. Statement of affairs of the company
8. Bank statement of account
Tax Clearance Certificate for New Companies
The fact that a company is new does not exempt such a company from obtaining a Tax
Clearance Certificate. In such a circumstance, the Tax Clearance Certificate will clearly indicate
“zero”, which implies such a company does not owe taxes for the period before its formation.
How to Get an Individual Tax Clearance Certificate in Lagos?
As stated earlier, State Inland Revenue Services issues TCC for individuals within their
respective states. The requirements are Valid BVN, Date of birth, Utility bill, Proof of payment of taxes for the current year, and Taxpayer ID. While many states still manage this process manually, the Lagos State Internal Revenue Service (LIRS) has embraced technology to automate and digitize the TCC application, filing, payment, and verification processes via
https://etax.lirs.net/.
Is Tax Clearance Certificate Needed for a Form A in Nigeria?
Yes, it is mandatory for applicants initiating Form A (Business Travel Allowance, Payment of school fees, all other foreign exchange transactions, etc) to submit valid tax clearance certificates (TCCs) covering three years in line with a directive by the Central Bank of Nigeria
(CBN).
Is TIN Certificate the Same as the Tax Clearance Certificate in Nigeria?
No, it is not. A Tax Identification Number Certificate is a document that contains a tax identification number given to an individual, a registered business, or incorporated companies for
the purpose of tax payment. The TIN certificate serves as proof of registration for tax
purposes and is required when conducting various financial and business transactions, such as opening a bank account and participating in government contracts. It helps the tax authorities keep track of taxpayers and financial activities and ensure compliance with tax laws while TCC is a document stating that an entity does not owe tax for a period of time specified in the certificate.
How Can I Verify a Business Name in Nigeria?
1. Visit CAC’s official website
2. Click on Public Search
3. Input the business name and search
4. This would give you a list of businesses with their names (if any).
How Much Does It Cost to Get a Tax Clearance Certificate in Nigeria?
Sidebrief charges N50,000 for TCC exclusive of any official payment that is assessed by FIRS to be paid by the company.
SIDEBRIEF
Sidebrief is a RegTech startup that has helped founders, entrepreneurs, and business owners
across borders to register their companies with ease and comply with regulations. We provide
the tools for founders to start and scale businesses across borders from a single interface.
For further information, contact us today.
Email – hello@sidebrief.com
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