How to Apply for a Tax Clearance Certificate?

Once you've filed your income tax return by the end of Poush 2081 and completed your audit, the next step is getting your tax clearance certificate. Not sure how to apply for a tax clearance certificate? It’s done at your local tax office after filing.

By Nishan Khadka · Taxation · 1 year ago · 3 min read

Let's know what a tax clearance certificate in Nepal is.

What is a Tax Clearance certificate?

A tax clearance certificate is the certificate issued by the tax office to the person on demand after submitting the income tax return and paying all the taxes as per the relevant tax acts of Nepal.

Who Needs to Obtain a Tax Clearance Certificate in Nepal?

A Tax Clearance Certificate (TCC) is required by a wide range of individuals and organizations in Nepal, depending on their activities and compliance needs. This includes:

  • Registered companies and businesses
  • Self-employed professionals (e.g., doctors, lawyers, consultants)
  • NGOs and INGOs
  • Government contractors and suppliers
  • Foreign companies or investors operating in Nepal
  • Individuals involved in high-value financial transactions


In most cases, businesses must obtain a TCC annually for regulatory compliance and to qualify for government tenders. Professionals may need it for renewing licenses, while NGOs and INGOs require it for fund disbursements or registration renewals. Contractors need it to receive government payments, and individuals might be asked to present a TCC when purchasing property or applying for certain visas.


How to Apply for a Tax Clearance Certificate in Nepal

To apply for a tax clearance certificate in Nepal, follow the process based on your taxpayer category:

1. For D-01 Return Filers (Turnover Below Rs. 30 Lakhs)

  • File your income tax return online.
  • Pay the applicable tax through a recognized bank.
  • After payment, log into the IRD portal and generate the tax clearance certificate directly. No physical visit to the tax office is required.


2. For All Other Taxpayers

You must visit your respective tax office with the following documents:

  • Previous year’s tax clearance certificate (not required if this is your first year applying)
  • Audit report for the fiscal year
  • Income tax return with required schedules (Anusuchi 2, 5, 10, and 13)
  • Proof of tax payment (bank voucher or online payment confirmation)
  • E-TDS return, if applicable
  • Power of attorney, if someone else is applying on your behalf
  • Submit these documents along with a written application requesting the tax clearance certificate.

Should the taxpayer compulsorily obtain a tax clearance certificate?

A tax clearance certificate is not compulsory for all taxpayers, but it can be obtained if needed. Individuals with income from employment, rent, interest, or agriculture can apply for it if required for specific purposes like visa applications, bank loans, or other official processes.


Can we pay additional charges for obtaining a tax clearance certificate?

Taxpayers should not pay any charges other than tax.


Where can we file our complaint if we do not obtain a tax clearance certificate?

We can complain about it to the respective head of the tax office or the Inland Revenue Department.

Please note that the biometrics of the taxpayer are compulsory before obtaining a tax clearance certificate.

New Implementation: IRD has implemented QR Scan in Tax Clearance Certificate for its authenticity check.

 

For any assistance in obtaining tax clearance, you can directly connect with us .