How To Get Company Tax Clearance Certificate – In Nigeria.
Table of Contents
How To Get Company Tax Clearance Certificate – In Nigeria – Associated with this subject matter are – individual tax clearance certificate in Nigeria, uses of tax clearance certificate in Nigeria, sample letter of application for tax clearance certificate, contents of tax clearance certificate, Lagos state tax clearance, tax clearance certificate for sole proprietor, example of tax clearance certificate in Nigeria, Company ta clearance certificate.
All of these and more will be taken care of in this article. The objective is so that in the end you will be able to make decisions on how to go about your tax matters.
What is Tax Clearance Certificate (TCC)?
A Tax Clearance Certificate is a confirmation from the Relevant Tax Authority that the tax payer is up-to-date in the payment of its taxes at the date of issue of the Certificate.
Tax Clearance Certificate is required of both individual persons and corporate entities for various transactions in Nigeria.
READ ALSO: Tax Management Overview
How To Get Company Tax Clearance Certificate – In Nigeria.
How do I take the first step?
In the first place, every company must conform with initial incorporation processes. This is done by having the company registered with Corporate Affairs Commission (CAC). At this, CAC will issue it with a registration certificate which carries a registration number.
After this, the operators of such company must get at the closest Internal Revenue office to obtain Tax Identification Number (TIN), and VAT registration number too for those that deal with VATable goods and services. These two numbers serve as file number and account number for every payments and correspondences with the tax authority. To make a tax payment without TIN is like someone who paid money into a bank without an account number to be credited.
How to File in Self Assessment Returns!
After the company had carried out due accounting process, including account auditing, publication of the annual Financial Statement, and computation of the tax liability for the period, the next step is to file for a self assessment return. Documents/information required for this are:
1. The full name and incorporation documents of the registered Company.
2. Tax Identification Number (TIN);
3. Company’s financial statements.
4. Tax Computation schedule showing:
– Period of assessmen,
– Net profit;
– Taxable income etc, ( after taking care of necessary deductions like capital allowance and others)
– Tax payable.
5. Duly completed self assessment form for Income and Education tax,
6. Evidence of payment via any of the designated banks.
How To Get Company Tax Clearance Certificate – In Nigeria.
The Summary of the Procedure
Details so far shown above in this write-up indicates that this is not a layman’s job. It is the job of a professional. These steps involved must require the services of a consultant and tax experts:
Step 1: You should engage the service of an Accounting Consultant, who will register the company and carry out all other start-up processes, and
Step 2: Get your management account ready,
Step 3: Audit and publish your financial statements, and then do your,
Step 4. Tax liability computations and relevant schedules,
Step 4: Application for Corporate Tax Clearance Certificate (TCC)
The Content of Tax Clearance Certificate:
The Company Tax Clearance Certificate is valid for 3 years and will show:
-Company name, address and TIN
– Period covered.
– Chargeable Income
– Tax payable;
-Tax paid’;
-Nature of business,
-Type of assessment ( i.e. BOJ – Best of Judgement, self assessment etc. )
-Expiry date
The period covered progresses a year after the other, that is, after one year, the earlier year drops while a current year comes in place. For example, a TCC for 2012, 2013, 2014 is for a period 2012 to 2014, but when TCC for 2015 becomes due, the new TCC will now show tax information for 2013, 1014, and 2015. So you see that 2012 drops while 2015 comes in. This is how it progresses year after year. Therefore, it is a document that you will always up-date from year to year.
You require the services of a tax consultant. Such services will avail you a lot of tax savings, yet the professional fees are moderate.
How To Get Company Tax Clearance Certificate – In Nigeria.
Tax Clearance for Newly Registered Companies
For newly registered companies within 6 months of incorporation, tax clearance certificate attracts no fee; but for those incorporated company who are yet to commence business requesting for tax clearance certificate after 6 months of incorporation, an Accountant (not a lawyer) must prepare for your company ” Statement of Affairs” without which you can not file for pre-operation TCC . A pre-operation levy of N25,000 is payable for the first time and N20,000 is payable for subsequent years until the company files a notice of commencement of business.
READ ALSO: 50 Things An Accounting Firm Will Do for You
How do I have to wait to get this certificate?
Application for company Tax Clearance Certificate takes up-to 14 working days to process. Where the application/filing is queried, it could take more days due to the fact that the tax payer will need to make corrections, and settle all the tax queries before refiling again, and the processing days start counting afresh again.
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
