Nigeria - Apply for a Company Tax Clearance Certificate
- 1 Procedure
- 2 Required Documents
- 3 Office Locations & Contacts
- 4 Eligibility
- 5 Fees
- 6 Validity
- 7 Documents to Use
- 8 Sample Documents
- 9 Processing Time
- 10 Related Videos
- 11 Instructions
- 12 Required Information
- 13 Need for the Document
- 14 Information which might help
- 15 Other uses of the Document/Certificate
- 16 External Links
- 17 Others
- Step 1
- Register your Company.
The first step is to get in touch with FIRS and register your company. The FIRS usually maintain offices in almost every local government area. So, if your office is located in Surulere, you will have to register with the Integrated Office on Bode Thomas.
After registration, your company will be given a Tax Identification Number (TIN). Your TIN will be used for every tax related transaction you do like VAT and WHT. It is however not to be used for your state related taxes like the ones collected by the LIRS. This should be your last direct contact.
- Step 2. Hire a Consultant.
At this point if Possible you should hire a tax consultant or do it by by yourself, . However, the next steps guide you with what the processes will be.
- Step 3. incorporate your Company.
You should incorporate your company through a tax consultant and to begin commencement of the business, A company may be incorporated but yet to commence business. Incorporation simply means you have registered your company with the corporate affairs commission. Commencement means the date you started using the company you registered for business. Then open up a bank account that shows inflow and outflow of money.
- Step 4
- Provide Audited books of Accounts.
If your company commenced business for a period of time then you will be asked by your consultant to provide an audited Financial Statement (FS) or Statement of Affairs. An FS is a document that contains the financial state and performance of your business for the period under consideration. It includes things like your Balance Sheet and Profit and loss account.
- Step 5
- Include an estimated computation Tax payable statement.
Once the Financial Statement is prepared and signed by the representative of the company and the auditors, hand it over to your consultant. The Financial Statement for a company in operation also includes your estimated tax payable. Your estimated tax payable is the amount of tax you are telling the FIRS that you are liable to pay. However, this is not usually acceptable by the authorities as they often make their own computation. But you should do yours and make it as conservative as possible.
- Step 6. Fill the Tax clearance forms.
Your consultant will give you several forms to fill. You will be guided as you fill the forms. However, it is important that you read through the forms as most of the information you reveal in it are confidential and so you will not want to give out something that might implicate you because it is wrong.
You will also be told to provide copies of your letter head. These copies are used for correspondences with the tax authority which will typically include your application for tax clearance certificate. You will also need to give your consultant your Certificate of Incorporation and Memorandum and Articles of Association (often called MEMAT). You will also give the tax consultant a copy of the personal tax clearance certificate of your MD or/and any Director which you will obtain from the state inland revenue service. For example, in Lagos it is obtained from the LIRS.
- Step 7
- Submit the relevant Documents.
Your tax consultant will then submit your documents with the FIRS. The role of the tax consultant is very critical as their handling of your case with the authorities usually determines if the tax officials will accept your figures and give you a certificate on time.
In a situation where the account you prepared is not acceptable to the authorities they can by law use a Best of Judgement (BOJ) decision to compute the amount of tax you should pay. This is often a drastic and unfavourable scenario for the tax payer. However it can be minimized or all together avoided.
- Step 8
- Payment for the Certificate and be issued with the company Tax Clearance Certificate
You will be given a Tax Clearance Certificate that is signed by an Inspector of Taxes. The tax clearance certificate is usually for the 3 years preceding your application. So, you will be given a certificate reflecting the years in the following sequence for example 2010, 2009, and 2008.
The cost of a tax consultant differ for small businesses. However, the can fall between N50k to N100k depending on the peculiarity of your
- Tax Identification certificate;
- Proof of income;
- Business registration certificate;
- Articles and Memorandum of Association
Office Locations & Contacts
- FEDERAL MINISTRY OF COMMERCE & TOURISM
Old Secretariat Area I, Block G & H
P.M.B. 88, Garki, Abuja
Tel: 09-2341689; 2341491
- FEDERAL MINISTRY OF FINANCE & ECONOMIC DEVELOPMENT
(Opposite Central Bank)
P.M.B. 14, Garki, Abuja
Tel: 09-2340946; 2340324; 2343783; 2343784
2343786; Fax: 09-2340512
- FEDERAL INLAND REVENUE SERVICE (FIRS)
Ministry of Finance Complex
Block B, 2nd Floor Gadastral
Zone A3, Garki, Abuja
Tel: 09-2340939; 2635446
Anyone who carries out a taxable transaction is eligible to register for Tax clearance certificate.
Usually the fees range from N50,000 to N100,000
The certificate is valid for 3 years
Documents to Use
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If all the document are submitted on time it takes 7 working days to process the Tax Clearance certificate.
Videos explaining the procedure or to fill the applications. Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites. Please remove the "&" inside the tags during implementation. Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, sevenload, viddler, vimeo, youku, youtube width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed. e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".
1. Registering a Company tax Clearance should be done within the limited period of time in a given period of time;
2.An applicant must ensure that he / she is registered at the Nigeria Revenue Authority and that he she has a Tax Identification Number (TIN);
3.Registration is done at at a cost charge
4.An applicant must ensure that his / her Taxpayer Identification Number (TIN) appears on all Tax invoices, and on all returns and official communications with the Authority.
5.Always be keen with the deadline for registering tax returns.
6.In cases of any changes after registration of a tax, always notify the authority in writing;
7.Whenever a taxable transaction carried out ensure that a tax invoice is issued to the person who receives the goods or services;
8.All payments are made in partnering banks;
9.Ensure that payment is made before the given period expires
1. The full name and other relevant details of the registered person / applicant;
2.Tax Identification Number (TIN);
3.Period of submission of returns;
4.Amount of taxable income;
5.Amount of tax income to be registered;
Need for the Document
A Tax Clearance Certificate is a written confirmation from Revenue that a person's tax affairs are in order at the date of issue of the Certificate. In some instances a Certificate may be issued to a customer who has tax arrears provided such arrears are covered by an installment arrangement that has been agreed with Revenue.
The requirement to produce a Tax Clearance Certificate usually arises in the context of a person seeking State money (e.g. Government contracts, grants) or obtaining licenses (e.g. excise license, road transport licence) but can also arise in other cases (e.g. the Standards in Public Office Act, 2001 applied tax clearance requirements to persons elected to the Dail or State, judicial appointees and senior office appointees). Apart from situations where a person is legally required to produce a Tax Clearance Certificate, Revenue is also prepared to issue a Certificate to any customer whose tax affairs are in order.
Information which might help
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Other uses of the Document/Certificate
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