HOW TO PROCESS A TAX CLEARANCE CERTIFICATE IN ABUJA, FCT

A tax clearance certificate is a document that verifies that an individual or business has no outstanding tax liabilities to the government. 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. In Abuja, the Federal Capital Territory (FCT), the process of obtaining a tax clearance certificate typically involves the following steps:

 

Register for a Tax Identification Number (TIN): Before you can apply for a tax clearance certificate, you will need to register for a TIN with the Federal Inland Revenue Service (FIRS) or the State Inland Revenue Services in Abuja. You can do this by visiting the nearest FIRS office, completing the TIN registration form, and providing the required document;

A Certificate of Incorporation issued by Corporate Affairs Commission

Necessary documents showing the correct Business address and other corporate details. These are found in the Status report of the company or Business,

Commencement date of business.

 

File your taxes: Once you have a TIN, you will need to file your taxes for the current year and any previous years for which you have not yet filed through the designated payment platforms e.g Remita. This can be done by visiting the FIRS online TCC application portal called TaxPromax, where you can download the necessary forms and instructions for filing your taxes.

 

Submit your VAT and tax clearance certificate application: Once you have filed your taxes, you can then apply for a tax clearance certificate by visiting the nearest FIRS office and submitting the required documents, such as your TIN, proof of filing your taxes, and a filled tax clearance certificate application form.

Please find below a comprehensive list of documents required for the application of VAT and Tax Clearance Certificate;

 

Application for Tax Clearance Form

Taxpayer registration input form

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.

Bank statement

Audited Account

Letter of appointment of tax adviser and a letter of acceptance

Submission of Documents and Registration of VAT.

 

Wait for processing: The processing time for a tax clearance certificate can vary depending on the workload of the FIRS office. Typically, the process can take anywhere from a few days to a few weeks.

 

Pay any outstanding taxes: If the FIRS finds that you have outstanding taxes, they will notify you of the amount due and you will have to pay them before your tax clearance certificate can be issued.

 

Collect your tax clearance certificate: Once the FIRS has processed your application and you have paid any outstanding taxes, you will be able to collect your tax clearance certificate from the FIRS office.

 

It is important to note that a tax clearance certificate is valid for a certain period of time, usually one year, after which it will need to be renewed by filing taxes and applying for a new certificate. Additionally, it is important to ensure that the company’s tax profile is up to date, keeping records of all transactions and payments made to the tax authorities.

 

It’s also important to note that a tax clearance certificate is a requirement in order to partake in government tenders and apply for business loans from banks and other financial institutions, so having one is essential for any individual or business operating in Abuja or any part of Nigeria.

Okpi, Ibe Chinedu is the Principal Partner in the Law Firm of Ibe, Chido, and Associates ( www.ibechidoassociates.com.ng ).Contact via phone: 07069279374 or email: info@ibechidoassociates.com.ng