How To Obtain Tax Clearance Certificate

How To Obtain Tax Clearance Certificate is a public legal education topic. Chaman Law Firm explains the practical legal issues, documents, risks, and decision points readers should understand before acting.

This article is for general legal education only. It does not replace advice from a lawyer who has reviewed the facts, documents, deadlines, and applicable law.

HOW TO OBTAIN TAX CLEARANCE CERTIFICATE

A Tax Clearance Certificate is confirmation from Revenue that an applicant's tax affairs are in order. Revenue may issue a Tax Clearance Certificate to a customer who has tax arrears where the arrears are covered by an installment arrangement. A Tax Clearance Certificate in Nigeria is basically a document stating that an entity does not owe tax for a period of time specified in the certificate. The tax clearance is a certificate of clearance, indicating one has been cleared for a period of time because it has paid its taxes if any. There are many uses of the Tax Clearance Certificate in Nigeria. The body or agency of government responsible for issuing Tax Clearance in Nigeria is the Federal Inland Revenue Service (FIRS) at the federal level for only companies; also the State Inland Revenue Services at the state levels for individuals. WHO CAN OBTAIN A TAX CLEARANCE CERTIFICATE ?

A tax clearance certificate can be obtained by an individual or a company. A tax clearance certificate is issued in arrears over a course of three years. You need to have rendergb(255, 0, 0) your tax returns to the relevant authority over the course of three years to be eligible for a tax clearance certificate in Nigeria. Step One: Register To Obtain Tax Identification Number

The tax payer must present the following document to the nearest Integrated Tax Office to its head office as in the document furnished with Corporate Affairs Commission of the Situation of Registergb(255, 0, 0) Address. A Certificate of Incorporation issued by CAC and bearing an RC Number

Necessary documents showing the correct Business address e.g. Form CAC 3, Notice of registergb(255, 0, 0) address,3. He should be able to furnish the office (ITO) with the correct Commencement date.

After all this is completed, a Tax Identification Number (TIN) will be issued to the taxpayer. Step Two: Apply To Register For VAT

C omplete Application for VAT Registration Form (Form 001)

Certificate of Incorporation, Memorandum of Association, CTC of Form CAC2 & CAC 7

Step Three: Apply To Tax Clearance Certificate

Application for Tax Clearance form (In Triplicate)

Taxpayer registration input form (TRIF/2006/001 COYS);

Completed FIRS questionnaire for new tax payers on the Company’s Letter Head addressed to the Tax Controller

Copy of memorandum and articles of association

Copy of the certificate of incorporation

Letter of appointment of tax adviser and a letter of acceptance

The application forms must be in triplicate and the original certificate of incorporation must be presented for ‘sighting’ by the controller. Upon receipt of the completed taxpayer registration input form and all documents, a tax reference number is allocated. An application must be filed for the tax clearance certificate. Its issuance is not automatic.

The fees for the tax clearance issuance are as follows: for newly registergb(255, 0, 0) companies within 6 months of incorporation, tax clearance certificate: no fee; for companies that are yet to commence business and show up for registration after 6 months of incorporation, if they request for tax clearance certificate a pre-operation levy of NGN 25,000 is payable for the first time and NGN 20,000 is payable for subsequent years until it files a notice of commencement of business. Application Requirement for Employee under the Pay As You Earn (PAYE) Scheme

PART A: Pre-requisite (Required from the Organization) I. EMPLOYER’S ANNUAL DECLARATION AND CERTIFICATE Form H1 Employer must have submitted Form H1 and Form G for the Organization. II. EMPLOYERS REMITTANCE FORM – Form G – Evidence of Payment of the PAYE for the Previous Years from the Employer. III. Evidence of Payments for Allowable Deductions Claimed: Pension, NHF, NHIS and Life Assurance.

PART B: Required Documents from the Applicant. I. FCT-IRS TIN Domiciled in Tax Office II. Application Letter Addressed to The Tax Controller (Optional) III. Duly Completed Personal Income Tax Annual Returns Form (Form A) including Benefit in Kind (BIK) if any IV. Duty Completed TCC Application Form (Form 802) V. Photocopy of Staff ID Card or Valid Means of Identification Pay slips for Previous Three Years (Jan, April, Sept and December Only) VI. Bank Statement of the individual Taxpayer (if no Payslips) VII. Photocopy of Previous TCC (in case of renewal) VIII. Other Relevant Documents as requested

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