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Business News of Tuesday, 23 May 2023


Banks to demand tax clearance certificate before customers can buy dollars, other foreign currencies

Customers at a banking hall Customers at a banking hall

Nigerian banks have begun implementing a new regulation that requires customers to present a valid Tax Clearance Certificate (TCC) for foreign exchange transactions.

The move complies with new regulations by the federal and state governments which aims to ensure tax compliance, in line with the provisions of the Personal Income Tax Act.

How the new tax certificate for FX transactions will work

ThisDay reports that the regulation covers a wide range of transactions, including applications for government loans, registration of motor vehicles, foreign exchange transactions, certificate of occupancy, award of government contracts, and more.

By implementing the TCC requirement, the government aims to ensure that residents fulfill their tax obligations and contribute to the country's economic development.

Banks inform customers

Nigerian banks, through text messages and emails, have already informed their customers that a Tax Clearance Certificate (TCC) is now compulsory, along with other requirements, for various foreign exchange transactions.

These transactions include Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of international school fees, medical expenses, and personal home remittances.

Wema's message to customers reads: "Tax clearance certificate is now required for form A processes.

"Please be informed that with immediate effect, it is now mandatory to include a valid tax clearance certificate along with all the documents currently uploaded on the portal for Form A requests (PTA/BTA, Tuition, Maintenance/Upkeep).

"This additional requirement has been implemented to ensure compliance with tax regulations and to facilitate smoother processing of your requests."