Tax Clearance Certificate; FCTA makes it compulsory MDAs, SDAs to use 

The Federal Capital Territory Administration (FCTA) made it compulsory for tax clearance certificates to be used whenever commercial banks are offering any services. 

The administration also barred Ministries, Departments, and Agencies (MDAs) as well as its own Secretariats, departments, and others from offering services to people without demanding and verifying their tax clearance certificates.

The directive was contained in a memo dated 4th October 2023 and signed by the FCT Minister, Chief Nyesom Wike.

It was addressed to the Minister of State in the FCT, Permanent Secretary in the FCTA, Chief of Staff to the FCT Minister, FCT Mandate Secretaries, Chief Registrar of the FCT High Court, All Directors/Heads of Secretariats Departments and Agencies SDAs.

Titled ‘Enforcement of Section 85 of Personal Income Tax Act, 2011 (as amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act 2015 on demand and verification of Tax Clearance Certificate TCC by MDAs, commercial banks, and SDAs in the FCT’, the memo listed several transactions requiring the mandatory demand for the said certificates.

Some of the transactions that would need tax clearance are applications for government loans, motor vehicle registration, applications for land, applications for certificates of occupancy, and 22 others.

The memo reads in parts; “The Federal Capital Territory Administration FCTA has observed with dismay, lack of implementation and adherence to the provisions of section 85 of Personal Income Tax Act (PITA), 2011 (as Amended) and Section 31 of the Federal Capital Territory Internal Revenue Service Act, 2015 that provide for the demand and verification of Tax Clearance Certificates TCC from residents of the FCT before rendering of services or performance of transactions.

“It is pertinent to note that both the Personal Income Tax Act (PITA) 2011 (as amended) and the Federal Capital Territory Internal Revenue Service Act, 2015 provide that Ministries, Departments and Agencies (MDAs), Commercial Banks, Secretariats, Departments & Agencies (SDAs) of the Federal Capital Territory Administration (FCTA) as well as Area Councils, corporate bodies, and statutory authorities among others must demand and verify TCC from residents before rendering of services or performing any transaction”.