Tax Clearance Certificate (TCC) in Nigeria is an important document issued by Federal Inland Revenue Service (FIRS) or States Inland Revenue Service showing that applicant’s tax affairs are in order. TCC in Nigeria is necessary for various corporate transactions by both individuals and corporate organizations in Nigeria.
For corporate bodies, there a six month grace from Nigeria federal government to issue your company her Tax Clearance Certificate for free.
Terms: Commencement Date. It means the date you started using the registered company for business.
Read: How to obtain TIN & Requirements (Tax Identification Number)
This means, you can register a company in Nigeria in year ABC and commence business operation in year XYZ. Year XYZ is your commencement date.
Whether you are a corporate body or an individual, you need Tax Clearance Certificate (TCC) in Nigeria. But before you can be issued tax clearance certificate, you must have rendered your tax returns to the relevant FIRS or states author as the case may be.
Tax clearance certificate usually covers a period of three years in arrears. This means if you want your company Tax Clearance Certificate for year “ABC”, FIRS or states tax body issue your company a TCC that will cover the present year tax and two previous years.
Where the business did not operate or not in existence, the two previous years will show nil.
Benefits of Tax Clearance Certificate in Nigeria.
Apart from it makes your company to be a good corporate organization to other corperate bodies, government and people that what to do business with your company in Nigeria, Tax Clearance Certificate in Nigeria is also necessary for the following purposes:
- For doing business or registration your company with other corporate entities in Nigeria. Both private and public organizations.
- Application for Government loan for industry or business
- Application for certificate of occupancy
- Application for transfer of real property
- Application for registration as a contractor (mentioned earlier)
- Confirmation of appointment by Government. (Federal, State and Local)
- For contesting for public office inform of election in Federal, State and Local.
- Application for change of ownership of property (Land, house, vehicle etc.)
In fact, Tax Clearance Certificate makes a corporate citizen that you would want to be.
Read: How to Obtain Your Company Tax Clearance Certificate