How to Obtain a Tax Clearance Certificate (TCC) in Nigeria

A Tax Clearance Certificate (TCC) is essential documentation proving your tax compliance in Nigeria. It's required for government contracts, bank transactions, and various business activities. This guide explains everything you need to know about obtaining and maintaining your TCC.

What Is a Tax Clearance Certificate?

Definition

A Tax Clearance Certificate (TCC) is an official document issued by tax authorities confirming that:

• You have filed required tax returns
• You have paid taxes due
• You are in good standing with tax authorities

Types of TCC

Type	Issued By	For
Federal TCC	NRS (Formerly FIRS)	Companies (CIT, VAT, WHT)
State TCC	State Internal Revenue Service	Individuals (PAYE, Personal Income Tax)
Joint Tax Board TCC	JTB	Individuals in special cases

Validity Period

Aspect	Details
Duration	12 months
Tax years covered	Typically 3 preceding years
Renewal	Annual, upon continued compliance

Why You Need a TCC

Mandatory Requirements

Situation	TCC Required
Government contracts	Federal TCC (Company)
Contract renewal	Federal TCC (Company)
Bank loan applications	Federal TCC or State TCC
Foreign exchange transactions	Federal TCC
Import/export clearance	Federal TCC
Registration of business name	May require TCC
CAC annual returns	Federal TCC (Company)
Directors of government-related entities	Individual TCC

Benefits of Having TCC

• Access to government contracts
• Smooth banking transactions
• Import/export facilitation
• Business credibility
• Compliance evidence

TCC Requirements

For Companies (Federal TCC)

Filing Requirements:

Tax Type	Requirement
Company Income Tax (CIT)	Filed and paid for 3 years
Value Added Tax (VAT)	Returns filed for 3 years
Withholding Tax (WHT)	Returns filed and remitted
Tertiary Education Tax	Filed and paid

Documents Required:

• Tax Identification Number (TIN)
• Certificate of Incorporation
• Evidence of tax payments (TRRs)
• Filed tax returns
• Audited financial statements
• Board resolution (if applicable)

For Individuals (State TCC)

Requirements:

Item	Details
Personal Income Tax	Filed and paid for 3 years
PAYE evidence	If employed
Direct assessment	If self-employed

Documents Required:

• Tax Identification Number (TIN)
• Evidence of tax payments
• Employment letter (if applicable)
• Business registration (if applicable)
• Bank statements (in some cases)

Step-by-Step Process

Federal TCC (Companies)

Step 1: Ensure Tax Compliance

Before applying, confirm:

• [ ] All CIT returns filed
• [ ] All CIT payments made
• [ ] All VAT returns filed
• [ ] All VAT payments made
• [ ] All WHT returns filed
• [ ] All WHT remitted
• [ ] TET filed and paid
• [ ] No outstanding assessments

Step 2: Gather Documents

Prepare:

• Company TIN
• Certificate of Incorporation (certified copy)
• Tax payment receipts/TRRs for 3 years
• Copies of filed returns
• Audited accounts for 3 years
• Letter of application

Step 3: Apply Online

Through NRS (Formerly FIRS) TaxPro Max:

1. Log in to your account
2. Navigate to TCC application
3. Complete the application form
4. Upload required documents
5. Submit application

Step 4: Pay Applicable Fees

Fee Type	Amount
Processing fee	Varies
Administrative charges	As applicable

Step 5: Verification

NRS (Formerly FIRS) will:

• Review your application
• Verify tax compliance
• Check for outstanding obligations
• Confirm payment records

Step 6: Collection

Upon approval:

• TCC issued electronically
• Physical copy available if needed
• Valid for 12 months

State TCC (Individuals)

Step 1: File Personal Income Tax

Ensure:

• [ ] Annual returns filed with State IRS
• [ ] PAYE properly remitted by employer
• [ ] Direct assessment paid (if applicable)

Step 2: Apply at State IRS

• Visit your State Internal Revenue Service
• Submit application with required documents
• Some states have online portals

Step 3: Verification and Issuance

• State IRS verifies compliance
• TCC issued upon confirmation
• Processing time varies by state

Processing Times

Authority	Typical Processing Time
NRS (Formerly FIRS)	2-7 working days (online)
State IRS	3-14 working days

Factors Affecting Processing:

• Completeness of application
• Compliance status
• Volume of applications
• System availability

Common Issues and Solutions

Issue 1: Outstanding Tax Assessment

Problem: NRS (Formerly FIRS) shows unpaid assessment

Solution:

• Review the assessment
• Pay if valid
• Object if disputable
• Clear before TCC application

Issue 2: Missing Returns

Problem: Some returns not filed

Solution:

• File outstanding returns
• Pay any tax due
• Include penalty/interest if applicable
• Then apply for TCC

Issue 3: Payment Not Reflecting

Problem: Tax paid but not showing in system

Solution:

• Obtain proof of payment (TRR)
• Visit NRS (Formerly FIRS) with evidence
• Request reconciliation
• Update records before TCC

Issue 4: TIN Issues

Problem: Multiple TINs or incorrect TIN

Solution:

• Apply for TIN harmonization
• Provide company details
• NRS (Formerly FIRS) consolidates records
• Clear TIN issues first

Issue 5: Company Status Issues

Problem: CAC status affecting TCC

Solution:

• Ensure CAC registration current
• File CAC annual returns
• Update company particulars
• Clear CAC issues

Maintaining TCC Eligibility

Annual Compliance Checklist

Month	Action
Monthly	File VAT and WHT returns
Monthly	Remit PAYE
January	File annual PAYE returns
June (if Dec year-end)	File CIT returns
Ongoing	Keep records current

Best Practices

1. File on time - Never miss deadlines
2. Pay on time - Avoid arrears
3. Keep records - Maintain documentation
4. Monitor accounts - Check NRS (Formerly FIRS) records regularly
5. Address issues promptly - Don't let problems accumulate

Verification of TCC

How to Verify a TCC

Third parties can verify TCC authenticity:

Online Verification:

1. Visit NRS (Formerly FIRS) website
2. Use TCC verification portal
3. Enter TCC number
4. View verification result

Physical Verification:

• Contact issuing tax office
• Provide TCC details
• Request confirmation

What Verification Shows

Information	Visible
Company/Individual name	Yes
TIN	Yes
TCC number	Yes
Validity period	Yes
Tax years covered	Yes
Issuing authority	Yes

TCC for Specific Situations

New Companies

Companies less than 3 years old:

• TCC for available years
• May show shorter period
• Progressive compliance expected

Dormant Companies

Even inactive companies:

• Must file nil returns
• Maintain compliance
• Can obtain TCC showing nil

Companies in Dispute

If disputing an assessment:

• Pay undisputed amount
• Object to disputed portion
• TCC may be conditional
• Work with NRS (Formerly FIRS) to resolve

How Finora Supports TCC Compliance

Comprehensive Tax Management

Feature	How It Helps
Automated calculations	Accurate tax figures
Return preparation	Filing-ready documents
Payment tracking	Records of all payments
Deadline reminders	Never miss a due date

Documentation

Finora maintains records for TCC:

• All filed returns
• Payment evidence
• Transaction history
• Financial reports

Compliance Dashboard

See your status at a glance:

• What's filed
• What's pending
• Any outstanding amounts
• Upcoming deadlines

Export Capabilities

Generate documents for TCC application:

• Tax computations
• Return summaries
• Payment schedules
• Financial statements

Frequently Asked Questions

How long does it take to get a TCC?

Online applications through NRS (Formerly FIRS) typically take 2-7 working days if all requirements are met. State TCC processing times vary but usually range from 3-14 working days.

What if my company is less than 3 years old?

New companies can obtain TCC for the years they've been operating. The certificate will cover the available tax years since incorporation.

Do I need separate TCC for federal and state?

Yes. Federal TCC (from NRS) covers company taxes like CIT and VAT. State TCC covers personal income tax. The type needed depends on the requirement.

Can I apply for TCC if I have outstanding taxes?

Generally, no. Outstanding tax obligations must be cleared before TCC issuance. However, you may negotiate payment plans for large amounts while making partial payments.

Is there a fee for TCC?

Yes, there may be processing and administrative fees. The amounts vary and are typically modest. Check with the relevant tax authority for current fees.

Can I renew my TCC before it expires?

Yes, you can apply for renewal before expiration. This is recommended to avoid gaps in coverage, especially if you need TCC continuously for contracts.

Conclusion

Obtaining a Tax Clearance Certificate requires:

• Consistent compliance with all tax obligations
• Timely filing of all required returns
• Prompt payment of all taxes due
• Proper documentation of compliance
• Proactive management of tax affairs

A valid TCC demonstrates your credibility and opens doors to:

• Government contracts
• Banking facilities
• Business opportunities
• Regulatory approvals

Finora helps you maintain the continuous compliance needed for TCC eligibility through automated tax calculations, filing support, and compliance tracking.

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