Form A applicants to submit three-year tax clearance certificates effective today

 


Starting today, the Central Bank of Nigeria (CBN) has implemented a new requirement for customers initiating Form A. In accordance with this directive, customers must now submit valid tax clearance certificates (TCCs) that cover a period of three years.

Most banks have already communicated this new requirement to their customers as of yesterday. An email obtained by The Guardian states the following: "Effective Thursday, 1 June 2023, customers initiating Form A requests will be required to provide a valid Tax Clearance Certificate (TCC) for the three years immediately preceding the current year of assessment. This is in addition to uploading all other required documents on the Central Bank of Nigeria (CBN) Trade Monitoring System (TRMS) portal for Form A requests. This also applies to all requests currently awaiting FX allocation regardless of the stage on the TRMS portal."



The purpose of the TCC is to serve as evidence of meeting tax obligations and to ensure compliance with Section 85 (2) of the Personal Income Tax Act 2004 (as amended).

While acknowledging the inconvenience this may cause for their customers, the banks emphasize that this new regulation is mandatory. They state, "We understand that this may cause some inconveniences and we sincerely apologize for any strain that this may cause you. However, we are mandated by law to comply with tax regulations to maintain the integrity of the financial system."

However, some analysts are urging state tax offices on social media not to exploit the directive by turning tax clearance into profit-making avenues.

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