Sunday, September 5, 2010

Purpose Of The Non Residential Tax Clearance Certificate/Types of Taxes

The importance of tax regulations cannot be over-emphasized, as most transactions with any Ministry, department, or government agency cannot be concluded without evidence of tax clearance. i.e. a Tax Clearance Certificate certifying that all taxes due for the transaction that is deemed to be carried out have been settled in full. The following are some of the relevant tax regulations in the various countries which was adopted for the NRTCC (Non Residential Tax Clearance Certificate).

1. CAPITAL GAINS TAX: This accrues on transaction that you are about to receive from a particular organization. private individuals, companies and financial bodies. It pertains to all gains accruing to a taxpayer from the receipt of the funds or loan due in his/her name.e.g lease or other transfer of proprietary rights in a chargeable interest which are subject to a capital gains tax at a very negotiable rate, such chargeable assets may be corporeal or incorporeal and it does not matter where the assets, funds or cash is coming from. Where however the taxpayer is a non-resident company or individual the tax will only be levied on the amount due to be received by this individual.

2. VALUE ADDED TAX (VAT) OR COST OF TRANSFER/TRANSACTION TAX: This was introduced by the VAT decree No. 2 of 1993, to replace the old sales tax. It is a consumption tax levied at each stage of the consumption chain, and is borne by the final consumer. It requires a taxable person upon registering with the Federal Board of Inland Revenue to charge and collect VAT at a flat rate of 5% (recently increased to 10%) of all invoiced amounts of taxable goods and services.

3. NON RESIDENTIAL TAX: This is a form of tax levied against any individual that is due to receive a particular amount of funds, cash or consignment item from any foreign country. It was put in place after the UN (United Nations) held a meeting to combat terrorism, pornography, child trafficking, drug abuse, war and other crime against humanity been sponsored knowingly or unknowingly by some financial institutions. This was put in place by both the British and United States Government to checkmate the inflow and outflow of cash out of some countries before final approval is due for the funds to be received by any individual of any country across the globe.

Friday, September 3, 2010

About The Non Residential Tax Clearance Certificate

The NON RESIDENTIAL TAX CLEARANCE CERTIFICATE is was put in place by the British Government and the United States Government after entering a bilateral agreement with other countries of the UN. This was done to checkmate the inflow and out flow of funds out of any foreign country because of the attack on the US Soil on September 11th 2001.

For any transaction to take place as regards to any foreign transfer most individuals and Private Finance Company always request for the NRTCC to comply with the directive of their Government and that of other foreign nations also.

The NRTCC was implemented to checkmate the level of people seeking for financing and other funds that they are not using the funds to sponsor terrorism, pornography, riots, human trafficking, hard drugs e.t.c.  The Importance of the NRTCC (Non Residential Tax Clearance Certificate) can not be over emphasized. All banks, private individuals company seeking for financing are advise to comply with the directive of the UN (United Nation) and that of the British & United States Government for peace and security reasons. It was decided that the NRTCC should take the place of checkmating the flow of funds in and out of every nation globally.