How to Obtain a Tax Clearance Certificate in Nepal

If you run a business in Nepal, obtaining a Tax Clearance Certificate is essential for compliance with the Inland Revenue Department (IRD). Whether you’re closing a company, transferring shares, or renewing business licenses, this certificate confirms that your company has no pending tax liabilities.

In this blog post, we’ll explain how to get a Tax Clearance Certificate in Nepal, the documents required, and the step-by-step process.

What is a Tax Clearance Certificate?

A Tax Clearance Certificate (TCC) is an official document issued by the Inland Revenue Department (IRD), confirming that a company or individual has cleared all applicable taxes for a fiscal year.

In the Nepali language, it’s called “Kar Chukta” (कर चुक्ता).

Why is it important?

• Required for company closure or deregistration
• Needed for share transfer or change in ownership
• Essential for renewing licenses or participating in government tenders
• Validates your company’s tax compliance status

Who Needs a Tax Clearance Certificate in Nepal?

• Registered companies (Private Limited, Public Limited)
• Partnership firms
• NGOs/INGOs
• Individual taxpayers involved in business or consultancy
• Businesses planning to close or exit the market

Documents Required for Tax Clearance in Nepal

To obtain a Tax Clearance Certificate, you’ll typically need the following documents:

1. PAN/VAT certificate
2. Tax returns of the current and previous fiscal years
3. Audit report (if applicable)
4. Payment receipts for advance tax or installments
5. Company registration certificate (copy)
6. Minute of Board Resolution (if applying through a representative)
7. Cover letter/application addressed to the Tax Officer
8. Proof of payment of all outstanding dues (if any)

Step-by-Step Process to Get a Tax Clearance Certificate in Nepal

Here’s a simplified guide to help you understand how to apply for a Tax Clearance Certificate in Nepal:

1. File Your Tax Returns & Clear Outstanding Dues
2. Prepare Required Documents
3. Visit the Inland Revenue Office
4. Verification and Approval
5. Receive the Tax Clearance Certificate

Step 1: File Your Tax Returns & Clear Outstanding Dues

Ensure all tax returns (VAT, TDS, Income Tax) have been properly submitted for the fiscal year. Pay any unpaid tax amounts, fines, or penalties. You can check this via the IRD Portal or consult your tax advisor.

Step 2: Prepare Required Documents

Gather all necessary documents including audit reports and receipts of payment.

Step 3: Visit the Inland Revenue Office

Submit your application along with documents to the concerned Tax Officer. If you have authorized a representative, include a Power of Attorney or board resolution.

Step 4: Verification and Approval

The Tax Officer will review your records, verify tax filings, and confirm payments. If everything is clear, your application will be approved.

Step 5: Receive the Tax Clearance Certificate

Once approved, you will receive your certificate. It may be issued in printed form or digitally via the IRD portal.

How Long Does It Take?

Typically, it can take 2 to 5 working days, depending on the workload at the Tax Office and whether your tax filings are complete and accurate.

Need Help with Tax Clearance in Nepal?

At Company Sewa, we provide complete support for obtaining Tax Clearance Certificates for all types of businesses in Nepal. Whether you are registering, updating, or closing your company, our experts can guide you through every step.

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Sample of Tax Clearance Certificate Nepal