What IS TCC and when is a company eligible for one?

Tax Clearance Certificate (TCC) in Nigeriais a document issued by the FederalInland Revenue Service(FIRS) or States Inland Revenue Service showing that the applicant’s taxes has been filed up to date and that their tax affairsare in order. As such, the applicant can be an individual or a corporate body who has filed its tax. It is safe to say that a Tax Clearance Certificate is a certificate given as evidence that an individual or corporate entity has made up to date remittance of its taxes.

A company is eligible to get a tax clearance certificate as soon as it has been registered by the corporate Affairs Commission. It is advisable for companies to do this within the first six months of incorporation, this is because obtaining Tax Clearance Certificate within the first six months of incorporation is free but subsequently to obtain same will attract a fee.

Additionally, companies that are yet to commence business and do not apply for same until after six months of its incorporation, a pre-operational levy of N25, 000 for the first year and N20, 000 for subsequent years until it commences business is applicable.

It is safe to say that the importance of a Tax Clearance Certificate cannot be over emphasized and getting one timeously is of great importance for companies.

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