The tax clearance certificate is a document issued to taxpayers in Cameroon to show proof that they are in good standing with the tax department and have paid all their taxes. It replaces the tax or non-tax certificate and the non-indebtedness tax slip.
It is the only valid document used to justify the taxpayers’ compliance in every administrative procedures. The certificate of non-indebtedness can be obtained online through the website of the directorate general of taxation for Cameroon. Read this previous post to know more.
Many people may not know certain things about the document and why it is issued. That is the reason I have taken time to bring out 10 important things you need to know about the tax clearance certificate.
1. As a prerequisite to obtain services from public & para-public institutions
A tax clearance certificate is needed from any taxpayer who needs administrative services from public and para-public institutions. Examples of such services includes instance permits, certifications, licenses, attestations, authorizations or any accreditation. Without showing proof of good standing when it concerns your taxes, levies or fines, your document or application is termed incomplete.
2. Shows proof of taxpayers’ tax situation
The tax clearance certificate is the only document that shows proof that a taxpayer is of good standing. It serves as a the taxpayers’ tax situation slip and tax or non-tax certificate also.
3. Transfer of funds out of the country
The 2018 finance law in obliges all taxpayers to present a tax clearance certificate in the case where they want to transfer funds to another country for professional reasons. So banks are obliged to ask for the tax clearance certificate from the company or taxpayer before any of such transfer is carried out.
4. Can be issued when the taxpayer benefits from moratorium or stay of execution
The tax clearance certificate or certificate of non-indebtedness is issued when the taxpayer has no tax debt as well as in the case where they have benefited from a moratorium or stay of execution that is duly authorized by a competent authority.
5. Taxpayers who have benefited from a moratorium or respite of payment
They must have it mentioned on the tax clearance certificate issued. It must make reference to the tax debt owed and the authorized instrument used to suspend the tax collection process.
6. The tax clearance certificate can be issued manually or online
This can be done manually upon request of the taxpayer after a complete examination of the taxpayer’s tax situation. It can also be done online through the website of the directorate general of taxation.
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7. Validity
The tax clearance certificate is valid for three (3) months from the date of signature. This can be reduced to a month in the case the taxpayer has benefited from a moratorium or stay of execution.
8. Verifiability
The tax clearance certificates are published on the website of the tax department. All institutions, both private and public that wish to verify the authenticity of certificate can do so on the website of the directorate general of taxation.
9. Must carry the TIN
The tax clearance certificate must bear the taxpayers identification number (TIN) without which the document is inadmissible.
10. It’s delivered for free
The last and the most important thing you should note is that it is delivered for free. The taxpayer should pay no extra charges in obtaining it apart from the normal fiscal stamp affixed on the application. It is issued by the chief of center for the tax center of the taxpayer after verification of the tax situation. It can also be delivered online.
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Thanks very much for this article. It has been really helpful.