Effective today, customers initiating Form A are requested to submit valid tax clearance certificates (TCCs) covering three years in line with a directive by the Central Bank of Nigeria (CBN).
As at yesterday, most banks had communicated the new requirement.
A mail seen by The Guardian reads: “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.”
TCC serves as proof of meeting tax obligations and ensures compliance with the provisions of Section 85 (2) of the Personal Income Tax Act 2004 (as amended).
While underscoring the inconvenience this might cause their customers, the banks insisted the new regulation is mandatory.
They added: “We understand that this may cause some inconveniences and we sincerely apologise 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.”
But some analysts have taken to social media to demand from state tax offices to shun the temptation of turning tax clearance into money-making avenues on account of the directive.