BUSINESS

Bank Customers Applying For Form A, FX To Present Tax Clearance Certificate

 

Bank customers applying for Form A and demanding foreign exchange (FX) are mandated to present Tax Clearance Certificate (TCC) alongside other required documents on the Central Bank of Nigeria (CBN)’s Trade Monitoring System Portal.

Form A is an application form designed by the CBN to pay for service transactions (invisible trade) like foreign tuition, training courses and medical bills.

FCMB in a notice to its customers obtained by Westernpost stated that TCC is evidence of meeting tax obligations from a revenue authority and should cover three years immediately preceding the current year of assessment.

According to the bank, its customers are required TCC for School Fees Payment, Payment for Upkeep, Medical Bills Payment, Personal Travel Allowance (PTA), Business Travel Allowance (BTA) and Personal Home Remittances.

The lender stated that other FX transactions for which a Form A is required.

The notice further explained that, “For the avoidance of doubt, it is necessary to note that approval of your Form A request on the Trade Monitoring System (TRMS) is subject to the review/certification of the valid TCC provided. Note that this also applies to requests currently awaiting FX allocation.”

Also, Guaranty Trust Bank in a notice to its customers noted that the directive is from the CBN and it is in line with provisions in the Personal Income Tax Act.

According to the bank, “In line with the directives of the CBN and compliance with the provisions in the Personal Income Tax Act, the submission of your TCC is now mandatory for the following Form A requests: School Fees Payment, Medical Bill Payments, Personal Travel Allowance (PTA) and Personal Home Remittances.

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“All other Foreign Exchange transactions for individual customers It is important to submit your TCC to ensure the smooth processing of all requests stated above.”

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