Tax clearance Certificate (Quitus Fiscale)
Is a certificate issued to tax compliant taxpayers. It is meant for taxpayers with a record of honouring their tax obligation. It is valid for a period of one year from the time it was issued. It is commonly known as “quitus fiscal”.
Advantages of quitus fiscal
1. Holders will save 5% withholding tax on importation of good and services that would otherwise be paid.
2. Government Tender winners will save 3% withholding tax retention on supplied goods and services.
Who is entitled to a quitus fiscal?
Taxpayers who accurately files and declares their tax dues
Who pays their tax dues on time and in time
Effect payment for his tax due on a regular basis and consistently over a given length of time exceeding one year
Have no tax arrears with the RRA.
A taxpayer who fulfils the above conditions is encouraged to apply to the Commissioner General of RRA for this certificate. Here is a list of taxpayers who have been granted with Quitus Fiscale in January, 2012.
