How to Get a Tax Clearance Certificate in Lagos for a Land Purchase

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Who Issues the Tax Clearance Certificate in Lagos?

For individuals resident in Lagos, the Tax Clearance Certificate is issued by the Lagos State Internal Revenue Service (LIRS). If you are a business or registered company, your TCC comes from the Federal Inland Revenue Service (FIRS).

This distinction matters. Make sure you are applying at the right agency for your situation.

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Step 1: Get Your Tax Identification Number (TIN)

Before anything else, you need a Tax Identification Number. If you are a salary earner, your employer should have registered you and you already have a TIN. If you are self-employed or have never engaged the tax system before, you will need to register.

You can register for a TIN through:

• The LIRS offices directly
• The Joint Tax Board (JTB) TIN registration portal at tin.jtb.gov.ng
• Your employer's HR department if you are in formal employment

Your TIN is the foundation of everything that follows. Without it, no TCC can be issued in your name.

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Step 2: File Your Personal Income Tax Returns

A TCC covers three consecutive years of assessment. You must have filed tax returns for those three years. For salary earners, your employer files on your behalf under PAYE and remits to the LIRS. However, you must confirm that this has been done correctly and that there are no outstanding liabilities.

For self-employed individuals or business owners, you are responsible for filing your annual returns yourself. If you have not been filing, you will need to regularize, meaning you file for the outstanding years and settle any outstanding tax liabilities.

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Step 3: Confirm Outstanding Liabilities Are Cleared

Before the LIRS will issue your TCC, any outstanding tax liabilities must be settled. This includes:

• Unpaid income tax for prior years
• Penalties for late filing
• Any assessed but unpaid taxes

The LIRS will conduct a review of your tax records and let you know if there are balances owed. Once cleared, you are eligible for the certificate.

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Step 4: Apply for the TCC at the LIRS

Once your filings are in order and liabilities are cleared, you can formally apply for your Tax Clearance Certificate. Applications can be made:

• In person at your zonal LIRS office
• Through the LIRS e-Tax portal for registered users at etax.lirs.ng

You will typically need to submit:

• A completed TCC application form
• Proof of tax payment or PAYE remittance evidence
• Government-issued ID
• Your TIN

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Step 5: Collection and Verification

Processing times vary. In straightforward cases where all filings are current and no liabilities exist, TCCs can be ready within a few working days to two weeks. In cases requiring back-filing or liability settlement, the timeline will be longer.

Once issued, verify the certificate is genuine. The LIRS has verification mechanisms to confirm authenticity, which is important because the Lands Bureau will scrutinize the document.

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Practical Timing Advice

Do not wait until after you have signed the deed to begin this process. Governor's Consent, which you need to perfect your land title after a Deed of Assignment, requires the TCC from both buyer and seller. If either party does not have a current TCC, the consent process stalls, and your title remains legally incomplete.

Begin your TCC process at least 4 to 6 weeks before your planned transaction closing date. If you suspect your filings are not up to date, begin even earlier.

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What If You Are a Nigerian in the Diaspora Buying Land?

If you are based abroad and buying land in Lagos, you still need a TCC. You may be assessed based on Nigerian-sourced income, and your lawyer or a tax consultant in Nigeria can assist with the filing and application process on your behalf through a Power of Attorney arrangement.

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Sardonyx helps buyers navigate not just the search for land but the full acquisition process. Reach us at [email protected] or visit www.sardonyxng.com.