Banks Demand 3-Year Tax Clearance From Forex Buyers.

Indications have shown that, some banks have asked their customers to submit tax clearance for the last three years when applying for Form A, which is an application form designed by the Central Bank of Nigeria to pay for service transactions such as school fees, medical fees, and more, allows customers to purchase funds at the CBN or interbank rate to make payments for these services.

An email notification from Standard Chartered to its customers said that, effective next month, they would be required to submit their TCC for the last three years when seeking forex via banks, while, reminding the previous communication on submission and verification of Tax Clearance Certificate for all FORM A applications, as the requirement to provide updated tax clearance certificate.

Fidelity Bank and Stanbic IBTC had also released similar circulars to their customers, urging them to submit their TCC to get approval for foreign exchange requests, such as Form A applications.

 A Tax Clearance Certificate serves as evidence of compliance with tax obligations, ensuring adherence to the stipulations outlined in Section 85 (2) of the Personal Income Tax Act, Cap P8, LFN 2004 (as amended).