Wednesday, January 15, 2020
The Executive Chairman of Nigeria's Federal Inland Revenue Service, Muhammad Nami, has signed a notice providing companies with an extra 30-day window to obtain a tax clearance certificate (TCC).
A TCC certifies that a business or individual is current with the payment of Nigerian tax liabilities. It is one of the documents necessary for various corporate transactions by both individuals and corporate organizations in Nigeria.
However, according to the notice, companies have been granted extra time to obtain a TCC due to ongoing processing delays.
The notices states that: "Following the numerous complaints received from our esteemed taxpayers with respect to difficulties encountered before obtaining Tax Clearance Certificate and the fact that taxpayers need TCC to enable them to, inter alia, seek and obtain contracts and loans, renew permits, registrations, franchises, agreements and/or licenses that will invariably generate revenue from which taxes will be paid, management has looked into the above complaints and has taken steps to ease the process of obtaining TCC."
"Consequently, notice is hereby given that the Service has put in place machinery to issue 2020 TCC for all eligible taxpayers from January 2 to January 31, 2020," the notice added.
However, the notice also warned non-compliant taxpayers that FIRS "will not hesitate to use enforcement activities including imposition of lien on bank accounts" to recover any tax debts.
"Taxpayers are therefore encouraged to take advantage of this initiative and apply for their 2020 TCC as soon as possible," the notice concludes.