Federal Inland Revenue Service – Tax Clearance Certificate (TCC)

I have received several question on the process to follow in getting a tax clearance certificate (TCC).

First what is a TCC?

TCC is a certificate issued by the Federal Inland Revenue Service to incorporated companies for every tax year (Tax year means January to December each year).

The issuance of a TCC indicates that a tax payer is free of any outstanding taxes as such the company is not liable to the government in any form of the federal taxes as at the time of issuing the certificate.

Application for a year tax clearance certificate commence from January of a new year and the certificate expires on the 31st December of the same year.

TCC is a major talk of the day especially among companies that seek government job, oil and gas job and some private corporation. The reason for this is to confirm the level of tax compliance of the company they are about doing business together.

Why do companies need TCC

To bead for jobs with the government, corporate entities and some other enterprise.
It is a symbol of good citizenship.
It is a testimonial of a worthy tax payer.
Why will the Federal Inland Revenue Service reject an application for TCC:

If the company is having outstanding returns such as statutory annual audited account returns, monthly VAT returns, monthly withholding tax returns and any other type of returns within the scope of applicable tax law of the relevant company.
If there is an outstanding payment to be made by the tax payer.
If the company is under audit or investigation (though a restricted TCC may be sought pending the finalization of the audit or investigation).
Any other reason that may have illegitimately reduced the revenue to the Federal Government in the opinion of the Federal Inland Revenue Service.
Once a TCC application is rejected, the Federal Inland Revenue Service is expected to send a rejection letter in writing stating the detailed reason why the application is rejected within two weeks from the date of application.

Basic information on the TCC are as follows:

Name of the company
RC number of the company
Date of company incorporation
Date the company commence operation.
Date of issuance of the certificate
Date of expiration of the certificate
Three years summarized financial records of the company including (Turnover, Assessable profit, tax liability and payment etc.)
Name of the tax controller issuing the certificate
Signature of the tax controller issuing the certificate.
Official stamp of the issuing tax office
The company nature of business
Basic Questions

This is 2015 and my company did not get tax clearance in 2013 and 2014, can I apply for the tax clearance now?
Answer – NO. You can only apply and get the tax clearance for the year 2015.

Why can’t I get the TCC for 2013 and 2014
Answer – The tax clearance for the back years are lost because the time frame within which the application is to be made has expire.

How do I get started if I must apply for a TCC
Answer – Ensure that you have filed all the relevant return expected of you and your company is not having any outstanding payment. Fill the Form No. FIRS/161/AP/G in triplicate and file same with a covering letter to your local tax office. Expect a response on or before two weeks from the date of application.

I hope the brief above answers the questions on how to process Federal tax clearance certificate.
I have received several question on the process to follow in getting a tax clearance certificate (TCC).

First what is a TCC?

TCC is a certificate issued by the Federal Inland Revenue Service to incorporated companies for every tax year (Tax year means January to December each year).

The issuance of a TCC indicates that a tax payer is free of any outstanding taxes as such the company is not liable to the government in any form of the federal taxes as at the time of issuing the certificate.

Application for a year tax clearance certificate commence from January of a new year and the certificate expires on the 31st December of the same year.

TCC is a major talk of the day especially among companies that seek government job, oil and gas job and some private corporation. The reason for this is to confirm the level of tax compliance of the company they are about doing business together.

Why do companies need TCC

To bead for jobs with the government, corporate entities and some other enterprise.
It is a symbol of good citizenship.
It is a testimonial of a worthy tax payer.
Why will the Federal Inland Revenue Service reject an application for TCC:

If the company is having outstanding returns such as statutory annual audited account returns, monthly VAT returns, monthly withholding tax returns and any other type of returns within the scope of applicable tax law of the relevant company.
If there is an outstanding payment to be made by the tax payer.
If the company is under audit or investigation (though a restricted TCC may be sought pending the finalization of the audit or investigation).
Any other reason that may have illegitimately reduced the revenue to the Federal Government in the opinion of the Federal Inland Revenue Service.
Once a TCC application is rejected, the Federal Inland Revenue Service is expected to send a rejection letter in writing stating the detailed reason why the application is rejected within two weeks from the date of application.

Basic information on the TCC are as follows:

Name of the company
RC number of the company
Date of company incorporation
Date the company commence operation.
Date of issuance of the certificate
Date of expiration of the certificate
Three years summarized financial records of the company including (Turnover, Assessable profit, tax liability and payment etc.)
Name of the tax controller issuing the certificate
Signature of the tax controller issuing the certificate.
Official stamp of the issuing tax office
The company nature of business
Basic Questions

This is 2015 and my company did not get tax clearance in 2013 and 2014, can I apply for the tax clearance now?
Answer – NO. You can only apply and get the tax clearance for the year 2015.

Why can’t I get the TCC for 2013 and 2014
Answer – The tax clearance for the back years are lost because the time frame within which the application is to be made has expire.

How do I get started if I must apply for a TCC
Answer – Ensure that you have filed all the relevant return expected of you and your company is not having any outstanding payment. Fill the Form No. FIRS/161/AP/G in triplicate and file same with a covering letter to your local tax office. Expect a response on or before two weeks from the date of application.

I hope the brief above answers the questions on how to process Federal tax clearance certificate.

Have a nice night!!!

Your Tax Consultant

Kola Olashile B.SC, ACA, ACIT

Kola.olashile@standardpracticeprofessional.com

08067023150.
Have a nice night!!!

Your Tax Consultant

Kola Olashile B.SC, ACA, ACIT

Kola.olashile@standardpracticeprofessional.com

08067023150.

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