As we all know, every business entity has filed their income tax return by the end of Poush 2080. After successful completion of the audit report and income tax return filing, companies should apply for tax clearance certificates at their respective tax offices.

Let's know what a tax clearance certificate is.

1. 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.

2. What should we do to obtain a tax clearance certificate?

The taxpayer should submit an application to the tax office for a tax clearance certificate with the necessary documents. Those who submit a D-01 return (a taxpayer with less than 30 lakh turnover) can generate a tax clearance certificate from the computer system after paying taxes from the bank.

3. Should the taxpayer compulsorily obtain a tax clearance certificate?

A taxpayer can obtain a tax clearance certificate if required.

4. Can a natural person with employment income only obtain a tax clearance certificate?

He or she can obtain it if required.

5. Can a natural person with rent and interest income only obtain a tax clearance certificate?

He or she can obtain it if required.

6. Can a natural person with agricultural income obtain a tax clearance certificate?

He or she can obtain it if required.

7. Will the tax liability of a person remain after obtaining a tax clearance certificate?

A tax clearance certificate is provided by the tax office on the basis of self-assessment by the taxpayer and paying taxes. If there is any tax liability after a tax audit by the tax department, the taxpayer is liable for taxes.

8. What are the documents to be submitted for obtaining a tax clearance certificate?

For D-01 Return (taxpayer having less than 30 lakh turnover) filer, tax payer can generate Tax Clearance Certificate after paying tax from the bank.

For other return filers, the following documents should be submitted at the tax office:

1) Previous fiscal year Tax Clearance Certificate (no need if it is the first year of applying for a Tax Clearance Certificate)

2) Audit Report of the Fiscal Year

3) Income Tax Return of the Fiscal Year (Nissa,Anusuchi 2, 5, 10, 13)

4) Documents proving the payment of tax for the fiscal year

5) E-TDS Return

6) Power of Attorney, if a tax clearance certificate is applied by another person on behalf of the taxpayer.

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

Taxpayers should not pay any charges other than tax.

10. Can a natural person with no income from employment, business, or investment obtain a tax clearance certificate?

He or she can obtain it if required.

11. 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.

Also Read: https://estartupnepal.com/taxation/easy-steps-to-get-registered-in-panvatexcise

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

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