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

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

January 31, 2020

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.

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

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  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.
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    A limited liability company (LLC) must not have a company secretary.
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    It is effective for an initial period of 5 years from the date of the application for registration and renewable for two consecutive periods of 5 years
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