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.

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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

1. Complete Application for VAT Registration Form(Form 001)
2. Certificate of Incorporation, Memorandum of Association, CTC of Form CAC2 & CAC 7

Step Three: Apply To Tax Clearance Certificate

1. Application for Tax Clearance form(In Triplicate)
2. Taxpayer registration input form (TRIF/2006/001 COYS);
3. Completed FIRS questionnaire for new tax payers on the Company’s Letter Head addressed to the Tax Controller
4. Copy of memorandum and articles of association
5. Copy of the certificate of incorporation
6. 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.

You may also find Tax Consulting Tax Planning, Tax Compliance and the Profitability of the Small Business

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.

This blog post first appeared on www.mocaccountants.com