Tax clearance certificate is a documentary proof issued to a tax payer by the government, having satisfied the requirements of paying tax at a particular point in time and at the time of issuance of the Certificate. Most Business owners find it difficult to transact business or access private or government loans due to the fact that they are yet to register or may not even know about Tax Clearance Certificate.
The Tax clearance certificate is popularly known as TCC. Applying for a it is not a difficult one but like other services required from Government Agencies, getting the help of a Consultant/ expert will be more helpful.
Before applying for TCC, the business entity must be registered with the Federal Inland Revenue Service as a Taxable person and have acquired a Tax Identification Number (TIN). The Corporate Affairs Commission is now integrated with the Federal Inland Revenue Service such that a TIN is automatically generated upon business registration. However, this is not the case for old companies. Below are the steps for registration as a taxable person as well as to obtain a TIN for old companies:
When registering for Tax Identification Number, It is advisable to register as a chargeable person for Value Added Tax (‘VAT’). Value Added Tax is chargeable on all goods and services that are locally supplied in Nigeria. It is a consumption tax paid when goods are purchased or services are enjoyed. There are however exemptions to the goods and services that VAT is charged on. To register as a VATable person, an applicant proceeds to the Integrated Tax Office closest to the location where business is carried out to apply. The requirements to register as a VATable person in Nigeria are:
FIRS in a bid to ease the process of payment and verification of tax payers have provided an online portal for the application of TCC on its website. The Applicant goes to the FIRS website and clicks on the icon for TCC application and registers either as an individual, corporate entity or for forex services. The Applicant having created a Corporate/ Individual profile, is expected to provide the following details in the Application form for TCC:
Having filled this details, the Applicant submits, and a system generated Application number pops up, this shows that the application for a TCC has been submitted. When the TCC is ready, an email will be sent to the registered email address.
Alternatively, the Application can be done manually at the nearest FIRS office after which the Applicant will have access to print out the TCC from the portal. Original copies of Incorporation documents for a Company may be required for verification.
Having submitted the form, the Applicant is expected to visit the FIRS/TCC portal to register and then make an online application after which a Tax Reference Number which will be issued for assessing the TCC online. An application number is immediately generated to confirm successful application after which an email will be sent with the TCC number evidencing the availability of the TCC for download.
The online application is much better as it saves one the stress of having to visit any FIRS office, besides after applying at the FIRS office, the Applicant is still directed to the online portal to continue application, hence the preference of the online application.
Upon receiving the email for availability of the TCC, log in to your profile on the FIRS portal, fill in the TCC number provided in the mail then download the TCC. Upon downloading the TCC, a tax payer is said to have satisfied his tax liability i.e. any amount owed to the Government and nothing is outstanding as at the time of issuance..
If applying for a TCC yourself, application is free and does not require any payment.
The originality of TCC can be done on the FIRS website online and takes only a few steps.
Sidebrief can assist you procure your TCC. All you have to do is provide the necessary documentation. If your company is a new one and within 6 months of incorporation, the process is easier and faster. There is no better time to start being in the Tax Authority's good books than NOW!!!
You can reach us via the details below.
Email: email@example.com or Phone: 09018081296
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