What is a Tax Clearance Certificate (TCC)?

Tax Compliance 

What is a Tax Clearance Certificate (TCC)?

A clearance certificate is a certificate that verifies an entity has paid all its tax liabilities at the time the entity ceased to exist or transferred to a new owner. 

• A clearance certificate confirms that all tax liabilities of an individual or entity have been paid.
• Different countries and different jurisdictions call for a clearance certificate depending upon the situation.
• The validity of a clearance certificate may only last for a certain period of time. 
• Tax clearance certificates might also be called tax clearance letters, tax status certificates or letters, certificates or letters of compliance or tax compliance, or letters or certificates of good standing.

How to get a Clearance Certificate

A tax clearance certificate is a document issued by a state government agency, usually the Department of Revenue. It certifies that a business or individual has met their tax obligations as of a certain date. In the United States, the IRS also issues tax clearance certificates in certain situations, such as applications for federal contracts.

In most states, the Department of Revenue will issue a tax clearance certificate, but in others it might be the Department of Taxes, Department of Finance, Secretary of State, or another agency. Many states provide forms for requesting a tax clearance online. Others require you to submit a written request.

Refer to the table below for the agency that issues tax clearance certificates for the US states. The procedures for getting a certificate vary widely from one state to the next, and the procedure depends on the type of business entity, the industry, and the location within the state. It's a good idea to check directly with the state agency responsible for issuing clearances before submitting your application to learn exactly what the certificate will cover.

Getting a Tax Clearance Certificate in the US

Getting a Tax Clearance Certificate in Kenya

A tax compliance, otherwise known as a Tax Clearance Certificate is an official document issued by Kenya Revenue Authority (KRA), as proof of having filed and paid all your taxes.

KRA issues the following Tax Compliance Certificates upon application:

• Tax Compliance Certificates for Taxpayers seeking tenders with Government Ministries and Institutions.
• Tax Compliance Certificates to employees leaving service nor seeking new job opportunities.
• Tax Compliance Certificates for taxpayers seeking liquor Licenses.
• Tax Compliance Certificates to Clearing and Forwarding Agents.

Tax Compliance Certificates are valid for twelve months only.

Application for a TCC is done through iTax platform and the certificate is sent to applicants' email address.

Follow this link for this information about Tax Compliance in Kenya.

Getting a Tax Clearance Certificate in Rwanda

Tax Clearance Certificate (Attestation de Non Créance -ANC) is a certificate issued by RRA to a taxpayer to certify that s/he owes no tax debt to the Authority. This certificate is requested in most business transactions by individuals, companies and/or institutions for many reasons: bid for public contracts, demand for bank credit, commercial register, change of destination for goods in customs, and so on. RRA installed computerized system software called SIGTAS which enables analysis of the taxpayers’ data in order to issue him/her the tax clearance certificate within one working day.

Requirements for TCC:

• Application form
• Application fee of 5,000 Rwandan francs.
• A copy of commercial register in case the applicant is a businessman.
• A copy of National Identity/passport.

Access TCC Application

For more information, click here.

Getting a Tax Clearance Certificate in Ghana 

A Tax Clearance Certificate (TCC) is documentary evidence issued by the Ghana Revenue Authority to confirm that the taxpayer is up to date with any tax payments and has met all applicable tax obligations at the date of issue. The GRA may also issue a TCC to a customer who has tax arrears where the arrears are covered by a satisfactory installment arrangement.

Applying for TCC:

• A person may apply in writing to the Commissioner-General for a Tax Clearance Certificate.
• The applicant shall state the purpose for which the Tax Clearance Certificate is required.

The Commissioner-General shall issue a Tax Clearance Certificate where the Commissioner-General is satisfied that the applicant:

(a) Has been issued with a Taxpayer Identification Number and the number is specified in the application;

(b) Has no outstanding tax, returns or other obligations under any tax law; and

(c) Has satisfied any other condition that the Commissioner- General may determine.

A tax clearance certificate issued to an applicant shall indicate that:

(a) The name of the taxpayer;
(b) The Taxpayer Identification Number;
(c) The period for which the Tax Clearance Certificate applies, which may be a continuous period and with respect to that period, whether
(i) Tax is due by the person;
(ii) Arrangements have been made by the person for the payment of tax that are satisfactory to the Commissioner-General; or
(iii) The Commissioner-General is currently satisfied that the taxpayer is in good standing; and
(d) Any limit on the purpose for which the Tax Clearance Certificate may be used.

A Tax Clearance Certificate is valid only for the period and purposes specified in the Tax Clearance Certificate.

For more information, click here.

Getting a Tax Clearance Certificate in Tanzania 

Entity in charge: TANZANIA REVENUE AUTHORITY UPANGA ZONE (SAMORA HOUSE)

Samora/Algeria Street P.O.Box 11491, Dar es Salaam

Tel: 0800 750 075 / 0800 780 078

Website here.

All applicants must submit a stamped application form to the above address. Access the application form here.

Legal justification for this process in Tanzania  includes the Finance Act 2015, (Article S.49) and the Business Licencing Act No 25 of 1972 (Article S.13).