Nigerian banks have implemented a new requirement for customers engaging in foreign exchange transactions. Customers are now mandated to present a valid Tax Clearance Certificate (TCC) as part of the documentation process. This regulation aligns with the provisions of the Personal Income Tax Act and aims to ensure tax compliance among residents.
According to RateCaptain, the new tax certificate requirement for foreign exchange transactions covers a wide range of activities. These include applying for government loans, motor vehicle registration, foreign exchange transactions, acquiring a certificate of occupancy, and being awarded government contracts, among others.
The introduction of the TCC requirement reflects the government’s commitment to enhancing tax compliance and promoting economic development in the country. Nigerian banks have taken steps to inform their customers about the new regulation through text messages and emails. They have highlighted that a valid Tax Clearance Certificate is now mandatory for various foreign exchange transactions.
The affected transactions encompass Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of international school fees, medical expenses, and personal home remittances. In a message sent to customers, Wema Bank stated, “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).”
By implementing this regulation, the government aims to ensure that residents fulfill their tax obligations and actively contribute to the economic growth of the nation. Nigerian banks will now require customers to provide a valid Tax Clearance Certificate as part of the documentation process for foreign exchange transactions. This measure strengthens tax compliance and underscores the importance of meeting tax obligations for the overall development of Nigeria’s economy.