A Tax Clearance Certificate (TCC) is a transaction-based written confirmation from the Malawi Revenue Authority (MRA), or any other tax administration, that a person’s tax affairs are in order at the date of issue of the certificate. It states that an individual or corporation has no tax due.
The TCC may be issued for all taxes or for a tax or taxes specified by the business. The Taxation Act, Section 85A (1) stipulates that notwithstanding anything to the contrary contained in any other written law, the conclusion of any transaction specified in the Fifteenth Schedule shall be subject to a TCC to be issued by the Commissioner General.
The Fifteenth Schedule lists a number of transactions which require a TCC. Such transactions include but are not limited to transfer of land and buildings, renewal of Certificate of Fitness for commercial vehicles, renewal of Business Residence Permit, change of ownership of a company, renewal of Temporary Employment Permits and renewal of telecommunications license among others.
A person requiring a TCC shall apply in writing for such certificate either by himself or through his representative or agent to the Commissioner General and justify why a TCC is required. A TCC shall be issued by the Commissioner General only where conditions as may be prescribed by the Commissioner General are satisfied.
Such conditions shall include evidence that the applicant is a registered taxpayer, except where the applicant is not subject to, or is exempt from, income tax. Furthermore, the applicant must submit his income tax returns and he should not have any outstanding income tax.
Making transactions without a TCC when it is required is
against tax laws and offenders will be penalized. A TCC is a requirement for
the awarding of business contracts through tenders from government and private
companies which require only tax compliant bidders.
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