The Federal Inland Revenue Service (FIRS) has launched a new Tax Clearance Certificate (TCC) application portal. This happened after they took down the former Tax Clearance Certificate (TCC) application portal.
To this effect, the Federal Inland Revenue Service (FIRS) craves the indulgence of taxpayers to update their information. This update with FIRS is to help towards achieving a seamless transition to the new portal. This will as well ease the application process of the Tax Clearance Certificate (TCC) from next year.
FIRS implores taxpayers to complete the FIRS update form. Taxpayers should also, submit their updated forms to their respective tax offices. They can as well send their updated form via the designated e-mail addresses of their tax offices for filing.
Tax Clearance Certificate (TCC)
Recall, that most taxpayers were issued a restricted six-month Tax Clearance Certificate (TCC) for temporal use earlier in the year. These temporal Tax Clearance Certificates are due to expire on the 30th of June, 2020.
Entrepreneurs and taxpayers have been experiencing difficulties accessing the old portal and this news explains the difficulty. Many taxpayers have been applying for an extension of their Tax Clearance Certificate (TCC) through the former portal.
Entrepreneurs have also complained about a lot of technical and operational issues hovering around the old portal. The proposed new portal is indeed timely as it may address the downloading of tax payment receipts. More so, it also seeks to address the Withholding Tax (WHT) credit notes in real-time.
Impact On Entrepreneurs
The deadline for filing of companies’ income tax returns is fast approaching, therefore, FIRS is implored to hasten the seamless operations of the new portal so key functions can be performed. Also, it will, avail taxpayers the opportunity to download their available Withholding Tax (WHT) credit notes to offset their income tax liability.
Moreover, there should be an extension of the Tax Clearance Certificate (TCC) application deadline. Obviously, this will give entrepreneurs more time to complete their applications as we await the full operation of the new portal.
What Is A Withholding Tax?
An advance and indirect source of taxation deducted at source from the invoices of the taxpayer is a withholding tax. The major aim and purpose are for capturing as many taxpayers that may have evaded tax into the tax net. The tax rates are about 5% to 10% depending on the type of transaction and collecting authority for the tax.
What Is Value Added Tax (VAT)?
Value Added Tax (VAT) is a tax charged to consumers based on the purchase price of certain goods and services. Revenues from the Value Added Tax (VAT) rate are an important source of income for the government of Nigeria.