In Nigeria, a Tax Clearance Certificate (TCC) is an essential document for businesses, serving as proof of compliance with tax obligations. This certificate plays a crucial role in maintaining a business's good standing with the authorities and ensuring eligibility for loans or grants. More so, the Nigerian government mandates Ministries, Departments and Agencies (MDAs), and commercial banks to request a copy of valid TCC from individuals and businesses in order to process their applications for licences, permits and certificates from the government.
In Nigeria, the TCC can be obtained from two major tax authorities federal tax authority (the Federal Inland Revenue Service-FIRS) and State tax authorities (the Lagos Inland Revenue Service-LIRS, OIRS, etc).
Benefits of Tax Clearance Certificate (TCC) in Nigeria
A Tax Clearance Certificate (TCC) is used for the following transactions:
Applying for government loans and grants
Bidding for contracts
Obtaining licenses and permits
Accessing subsidized goods and services offered by the government
Obtaining certificate of occupancy for landed property
Procedure for Obtaining a TCC from the Federal Inland Revenue Service (FIRS)
The FIRS is responsible for collecting taxes at the federal level, such as Corporate Income Tax (CIT), Value Added Tax (VAT), and Personal Income Tax (PIT) for certain individuals.
Here's how to obtain a TCC from the FIRS:
Step 1 – Register with FIRS and ensure Tax Compliance
- Register with FIRS – If you haven't already, register for tax with the FIRS and obtain a Tax Identification Number (TIN).
- File Tax Returns – File all necessary tax returns accurately and on time. This includes Company Income Tax (CIT) annual returns, Value Added Tax (VAT), Withholding Tax (WHT) and Personal Income Tax returns, as applicable typically for the past three years.
- Pay Taxes – Ensure that all taxes due are paid in full and on time.
Step 2 – Apply for the TCC
Once you are registered with FIRS and you have filed your taxes, you can apply for a TCC by either online and manual processes.
Below is the online Application procedure for existing Nigerian businesses.
- Visit the FIRS TCC portal: https://tcc.firs.gov.ng
- Log in with your TIN and password
- Follow the instructions to generate and download your TCC
Apart from applying for a tax clearance certificate online, businesses can also apply manually for it by vising the nearest FIRS office. Below is a summary of the steps you need to take.
- Visit your nearest FIRS office.
- Request the TCC application form.
- Fill out the form accurately and completely.
- Submit the form along with the required documents, which may include: evidence of tax registration (TIN certificate), Copies of filed tax returns, Proof of tax payments, Other supporting documents as specified by the FIRS.
Processing and Issuance
The FIRS will review your application and verify your tax compliance status, if your application is approved, the FIRS will issue the TCC. For online application, TCC is issued immediately if application is successful but for manual application; the processing time may vary, but it typically takes a few weeks.
It is worthy to note that TCC is valid for one year from the date of issue.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
