A tax clearance certificate is one of the most important documents every business should have. However, most business owners are usually unaware of it until they need to get a government contract, loan or even get new business licenses.
In this article, we will be explaining what a tax clearance certificate is and how you can get it if you run a business in Ghana..
What is a Tax Clearance Certificate (TCC)
What is a Tax Clearance Certificate (TCC)
A Tax Clearance Certificate is a legal document that confirms a person or company has fulfilled all tax obligations up to the date of issuance. In Ghana, it is issued by the Ghana Revenue Authority (GRA).
It is vital for proving your credibility and reliability in financial matters. It proves that a business and its owners are compliant with local tax regulations and can also provide insight into the financial health of a business.
Who Needs a Tax Clearance Certificate?
According to the GRA, a tax clearance certificate is required by businesses who do any/all of the following:
- Import and clear commercial goods in Ghana.
- Operate as a custom clearing and forwarding agent
- Register land titles and perform other transactions at the Lands Commission
- Bid for contracts awarded by ministries, agencies or departments within government
- Are members of professional bodies renewing their license.
Other situations where a tax clearance certificate may be required include:
- When supplying items to the government
- When getting a cisa (some embassies require a TCC)
- Expatriates who want to renew their residence or work permit.
Step-by-Step Guide to Obtaining a Tax Clearance Certificate
Step 1: Ensure Compliance with Tax Obligations
Before applying for a TCC, ensure that you or your business has filed all necessary tax returns and made all due payments. This includes income tax, VAT, PAYE, and any other relevant taxes.
Step 2: Gather Required Documentation
Prepare the necessary documents to submit alongside your TCC application. These generally include:
- A completed TCC application form, available at GRA offices or on the TCC website.
- National Identification for individuals or Certificate of Incorporation for companies.
- Proof of tax payments and filed tax returns for the previous years.
- A letter requesting the Tax Clearance Certificate (for businesses).
Step 3: Submit Your Application
Take your application and supporting documents to any of the 58 GRA offices closest to you. Alternatively, you can apply for your TCC via the GRA website which we will explain later in this article.
Step 4: Processing
Once your application is submitted, the GRA will review it to ensure compliance with all tax obligations. This process may involve audits or further inquiries, so be prepared to provide additional information or clarification if requested.
Step 5: Issuance of the Tax Clearance Certificate
If your application is successful and you are found to be in compliance with all tax requirements, the GRA will issue your Tax Clearance Certificate. The timeframe for processing can vary, but it generally takes a few weeks. If you applied online, you might be able to download the certificate directly from the GRA portal. Otherwise, you will be notified to pick it up from the GRA office.
Tips for Smooth Processing
- Stay Up-to-Date with Tax Filings: Regularly file your tax returns and make payments on time to avoid complications when applying for a TCC.
- Keep Records: Maintain detailed records of your tax filings and payments. These will be invaluable during the application process.
- Follow Up: If you don’t receive feedback within two weeks of application, don’t hesitate to follow up with the GRA office where you submitted your application.
How to apply for an E-TCC
The E-TCC or Electronic Tax Clearance Certificate is a digital version of the TCC. It is issued by the GRA via the Taxpayers portal which can also be downloaded from your favorite appstore.
The E-TCC is easier to get than a physical copy and can be obtained almost immediately as long as your documents are up to fate. To apply for an E-TCC, do the following:
- Log into the Taxpayer’s Portal
- Click on “Your Tax Clearance” followed by “Process my TCC” to start
- Enter your TIN or that of your business and click on Process
Once you follow these simple steps, the system should verify your compliance status and generate a tax clearance certificate for you. You can use the E-TCC and an alternative to the TCC as they have the same function.
Conclusion
Obtaining a Tax Clearance Certificate in Ghana is a critical step for individuals and businesses to participate fully in the economic activities of the country. While the process requires attention to detail and adherence to tax obligations, it is straightforward if you follow the steps outlined above. Always ensure you are in good standing with the Ghana Revenue Authority to facilitate the smooth processing of your TCC application. This certificate not only enhances your credibility but also opens up numerous opportunities for growth and development in the country.