Article on Tax clearance certicate

Tax clearance certificate

Tax clearance certificate (TCC) is an official document issued by tax authorities. In Ghana, it is issued by the Ghana Revenue Authority (GRA). This certificate serves as proof that an individual or business entity has satisfied all their tax obligations up to date. It confirms that the individual or business entity holding the tax clearance certificate has no outstanding tax obligations or reached satisfactory agreement with the Commissioner to settle their outstanding taxes.

Key features of tax clearance certificate

1. Verification of tax position of the taxpayer (compliance)
2. Validity period
3. Tax identification number of the taxpayer
4. Name of taxpayer
5. Address of the taxpayer
6. Purpose of the tax clearance certificate

Benefits of Tax clearance Certificate

1. Eligibility for government contracts: In Ghana, many government agencies required tax clearance certificates as perquisite for tender processes for an award of contracts.
2. Facilitates business registration and licensing: Tax clearance certificate serves as requirements for obtaining licenses or registration at some institutions such as Bank of Ghana, Securities and Exchange Commission, Social welfare, etc.
3. Access to financial services: To get access to credit facilities from certain banks required tax clearance certificate. Some entities also request tax clearance before giving grants to not-for-profit organizations.
4. Legal and regulatory compliance: The ability of a person to obtain tax clearance certificates suggests that the person is compliant with tax laws. It also helps taxpayers meet registration requirement of certain statutory bodies
5. Visa applications: some countries required tax clearance certificate as part of their visa application process.

Institutions that require tax clearance certificate

Requirement for obtaining tax clearance certificate

To obtain tax clearance certificate from the Ghana Revenue Authority, one must meet the following requirements;

• Registration: Before you qualify for tax clearance certificate, you must be a registered taxpayer with tax identification number issued by the Ghana Revenue Authority.
• File your tax returns: Ensure that you have filed your required tax returns for the relevant period. This includes corporate income tax returns (CIT), VAT returns, PAYE returns and any other returns applicable. In the case of individual, personal income tax returns (PIT) should be filed.
• Pay all tax liabilities: All outstanding tax liabilities including penalties and interest must be paid.

What to do to obtain tax clearance certificates when the requirements are not met

• Regularize registration: A company or individual who is not registered with the Ghana Revenue Authority but want tax clearance must take steps to register with the Authority by submitting completed registration forms and other required documents.
• Negotiate payment plan with GRA: Where there is pending tax liability, the taxpayer should enter negotiation with the Ghana Revenue Authority to settle the liability. As provided for in 14(3)(c)(ii) of the Revenue Administration Act, 2016 (Act 915).

Steps to obtain an electronic tax clearance certificate (TCC) from the Ghana Revenue Authority (GRA)

1. Login to your taxpayer’s portal on https://taxpayersportal.com.

2. Check to ensure that there are no pending taxes due. You must ensure that all outstanding returns are filed, and payments made.
3. Click on your clearance beneath the company details on the portal.

1. 
   4. Click on process my TCC5.  Select the purpose for the tax you TCC by clicking the dropdown arrow.

   

   6. Select the purpose for the tax clearance certificate if the purpose for your TCC is not in the dropdown list, select other and type your purpose.

   

   7.  Enter the TIN of the requesting entity and the entity’s name and email will automatically populate.

   

   8. Click on process.
   

After clicking on the process, the system will automatically run a compliance check to ensure the compliance status of the entity is not in doubt. Once the system is done with checks and found no compliance issues, the system generates the electronic tax clearance certificate for you.

Your tax clearance certificate is ready for printing to be submitted to the requesting entity.

Author: Godwin Sodzedo (Senior Associate)