Tax Clearance – Obtaining Tax Clearance in Nigeria
OBTAIN TAX CLEARANCE IN NIGERIA
Tax Clearance – New Tax Payer
We present the following as steps for obtaining tax clearance certificate for a newly incorporated company with the Federal Inland Revenue.
Engage a Tax Consultant in Nigeria
Step One: Register To Obtain Tax Identification Number
The tax payer must present the following document to the nearest Integrated Tax Office to its head office as in the document furnished with Corporate Affairs Commission of the Situation of Registered Address.
1. A Certificate of Incorporation issued by CAC and bearing an RC Number
2. Necessary documents showing the correct Business address e.g Form CAC 3, Notice of registered address,
3. He should be able to furnish the office (ITO) with the correct Commencement date.
After all this is completed, a Tax Identification Number (TIN) will be issued to the taxpayer.
Step Two: Apply To Register For VAT
- Complete Application for VAT Registration Form(Form 001)
- Certificate of Incorporation, Memorandum of Association, CTC of Form CAC2 & CAC 7
Step Three: Apply To Tax Clearance Certificate
- Application for Tax Clearance form(In Triplicate)
- Taxpayer registration input form (TRIF/2006/001 COYS);
- 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
- Letter of appointment of tax adviser and a letter of acceptance
The application forms must be in triplicate and the original certificate of incorporation must be presented for ‘sighting’ by the controller. Upon receipt of the completed taxpayer registration input form and all documents, a tax reference number is allocated. An application must be filed for the tax clearance certificate. Its issuance is not automatic.
The fees for the tax clearance issuance are as follows: for newly registered companies within 6 months of incorporation, tax clearance certificate: no fee; for companies that are yet to commence business and show up for registration after 6 months of incorporation, if they request for tax clearance certificate a pre-operation levy of NGN 25,000 is payable for the first time and NGN 20,000 is payable for subsequent years until it files a notice of commencement of business.
Completion of the various forms require some knowledge which the ordinary personal may not understand, because the tax authorities may rely on them and demand for additional tax payment you may not have bargained for. Tax Experts may be able to help.
To obtain your tax clearance in Nigeria, you may need the service of a Tax Consultant who take away the stress and get it done for you with the steed of light.
Post by: Matthew OGAGAVWORIA, FCA, CFAN
Matthew Ogagavworia is the founder of Matog Consulting, a specialist management consulting firm in Nigeria. With over 19 years of experience in that cuts across professional service, banking, oil & gas, capital markets, serving small businesses. His specialties include, recruitment, forensic accounting, SME advisory, accounting advisory, risk management, audit, tax, debt recovery, business plan writing, company secretarial services and training.
Company: Matog Consulting
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