A Tax Clearance Certificate is a written confirmation from Revenue that a person's tax affairs are in order at the date of issue of the Certificate.
You can apply online for a tax clearance certificate or to verify one.
eTax Clearance is being introduced in December 2015. The changes are in line with the legislative provisions of Section 95 of the Finance Act 2014, which provided for 2 key changes
- processing of tax clearance applications, certificates issued by the Collector-General and verification by third parties, is all in electronic format; and
- where a taxpayer is found to be non-compliant with their obligations their tax clearance certificate can be rescinded (or withdrawn).
eTax Clearance will be available to business, PAYE and non-resident customers with a PPSN/Reference number. There is no change to the current process for customers/applicants that are not registered for Irish tax, i.e. non-residents or some community/voluntary groups. These applications will continue to be processed by the Collector General's Office. Furthermore, eTax Clearance does not apply to Standards in Public Office (SIPO) applicants.
Applications in eTax Clearance will be processed in real time. Customers who are tax compliant will receive a Tax Clearance Access Number, which along with their PPSN/Reference number they give to a third party to verify their tax clearance details. eTax Clearance will produce electronic output and customers will have the facility to print their tax clearance certificate from the screens, if required.
Tax clearance will be regularly reviewed and if a customer becomes non-compliant, their electronic tax clearance certificate can be rescinded (withdrawn). Where a customer's tax clearance certificate is rescinded, and the customer requires tax clearance at a future date, they will have to reapply online for tax clearance.
The new eTax Clearance system will go live from Monday 7 December 2015 and applicants can apply for electronic tax clearance from that date.
Verifying an eTax Clearance Certificate
Third party users will be able to verify an eTax Clearance Certificate via ROS or the Government Networks. Information on these options, including bulk verification options, has been made available to all Public Service Bodies. Additional information is available firstname.lastname@example.org.
What is a Tax Clearance Certificate
A Tax Clearance Certificate (TCC) is a written confirmation from Revenue that a person's tax affairs are in order at the date of issue of the certificate. In some instances a certificate may be issued to a customer who has tax arrears provided such arrears are covered by an instalment arrangement that has been agreed with Revenue.
Purpose of the Tax Clearance Scheme
The purpose of the Tax Clearance Scheme is to ensure that persons (residents and non-residents) who derive an economic benefit from:
- A licence/permit to conduct certain activities in the State, and/or
- Receipt of contracts/grants, subsidies and other payments from the State
Are in compliance with their tax obligations. Residents and non-residents apply for general tax clearance. However the following may apply for tax clearance but are not categorized as general tax clearance:
- PAYE customers may also need to get tax clearance in certain circumstances: PAYE Applicants
- The Standards in Public Office Act 2001 (SIPO) applied tax clearance requirements to persons elected to the Dail or Seanad, judicial appointees and senior office appointees: Persons covered under the Standards in Public Office Act (SIPO) 2001
Apart from situations where a person is legally required to produce a TCC in order to meet his/her legal obligations, Revenue is also obliged to issue a certificate, where requested, to any customer whose tax affairs are in order.
When is a general TCC required?
- Public Sector Contracts - A condition of obtaining a Public Sector Contract (Section 1095 Taxes Consolidation Act 1997) of a value of €10,000 or more, (inclusive of VAT), within any 12 months period, is that the contractor is required to produce either a valid C2 certificate or a general TCC. Such contracts can involve the purchase, hiring, leasing of goods, services or property by public authorities. Examples of the types of goods/services covered in such contracts are plant hire, cleaning or security, consultancies for management, legal or design services. The tax clearance requirement applies even where the provision of goods or services is not the subject of a formal written contract.
- Grant Payments - Also under Section 1095, T.C.A. 1997 payment of State/Public Authority grants, subsidies and similar type payments, by Government Departments and public authorities, of a value of €10,000 or more, within any 12 months period, including for example, industrial and farm development grants is subject to the person holding a current general TCC.
- Licences and certain schemes - A current TCC is required, by law, for the operation of the types of business situations listed in the following table:
- Small Public Service Vehicles (SPSVs) or Vehicles Drivers (SPSVDs) From 2nd August 2004 a taxi, wheelchair accessible taxi, hackney or limousine licence or a licence to drive such vehicles will not be granted or renewed unless the applicant produces to the licensing authority (i.e. the local authority, on an annual basis, or Gardai, every 5 years, as appropriate) a TCC issued by Revenue under Section 1095 of the Taxes Consolidation Act 1997. The application to be used in both instances is the general tax clearance application form pdfTC1 (PDF, 259KB) regardless whether the applicant is self-employed or a PAYE applicant. If a person is not registered for Income Tax or PAYE e.g. a person on social welfare wishing to obtain a taxi driver's licence, this person should complete the general tax application clearance form TC1 quoting their Personal Public Service Number (PPS Number) Holders of existing licences, who have outstanding tax issues, should arrange to put their tax affairs in order without delay in order to avoid a situation where the renewal of a licence must be refused due to the non-production of a TCC.
- Capital Gains Tax Clearance - Section 980 of the Taxes Consolidation Act 1997, obliges the purchaser of certain assets to withhold 15% of the purchase price of that asset from the vendor and remit it to Revenue as Capital Gains Tax, unless the vendor holds a general TCC or a CG50A. This section applies to assets over €500,000 in value (from 2003 onwards) and, usually, though not exclusively, arises in context of land/property sales.The CG50A capital gains tax clearance certificate is applied for on a CG50 application form (see Application Fomrs). While it is still possible to use the CG50 procedure the following can also be accepted by the purchaser (in lieu of the CG50) as sufficient authority to make the payment for the asset without deduction of the 15%A current tax clearance certificate issued under the normal tax clearance schemes, A certificate of authorisation (C2 cert.), or A tax clearance certificate issued specifically for the purposes of section 980 (deduction from consideration on disposal of certain assets)
- Charities - When applying for a public sector contract a charitable body must be in possession of a current TCC, which is obtainable from their local Revenue District Where a public sector grant, subsidy or similar type payment is being applied for, an applicant who has a Charity (CHY) Number does not require a TCC. Their CHY number must be quoted to the public body awarding the payment and that public body may require further confirmation. Where requested the Charities Section of the Revenue Commissioners will issue a confirmation letter as to the CHY number of the charity.A CHY Number is applied for through the: Charities Section , Office of the Revenue Commissioners, St. Conlon's Road , Nenagh , Co. Tipperary.For further information please telephone (LoCall) 1890 254565, Fax 067-32916 or email: email@example.com Where a charitable body is not in possession of a CHY number a TCC is required when applying for a public sector grant, subsidy or similar type payment.
- Criminal Justice Legal Aid Panel - Under the Criminal Justice (Legal Aid) (Tax Clearance Certificates) Regulations, 1999 where a solicitor is a PAYE employee and is applying for tax clearance for the purposes of the Criminal Justice Legal Aid Panel a general TCC may be issued to him/her. Before a TCC may issue to a PAYE employee the employers tax affairs must be in order (where the employer is a partnership, the partnership must also be tax compliant). The new Criminal Justice Legal Aid Panels start on 1st December each year. Solicitors applying for a TCC for the Criminal Legal Aid Panel cannot apply on-line. Download application form pdfTCI (PDF, 259KB) and forward it to your local tax district).
- Other Circumstances - The Finance Act 2002 permits any company/individual to apply for a TCC.
A list of 20 business situations requiring tax clearance
|Reason for Tax Clearance||Legal basis for Tax Clearance|
|Liquor licence (wholesale/retail)||S49 FA 1909-1910 plus S1094 TCA '97|
|Liquor licence for the National Concert Hall||S2 Intoxicating Liquor (National Concert Hall) Act 1983 plus S1094 TCA '97|
|Liquor licence for the National Conference Centre||S1 (9) Intoxicating Liquor (National Conference Centre) Act 2010 plus S1094 TCA '97|
|Bookmakers licence||S7 (3) Betting Act 1931 plus S1094 TCA '97|
|Gaming licence||S19 Gaming and Lotteries Act 1956 plus S1094 TCA '97|
|Auctioneers or House Agents licence (including auction permits)||S8, 9 & 10 Auctioneers and House Agents Act 1947 plus S1094 TCA '97|
|Hydrocarbon oil and LPG licences||S101 FA 1999 plus S1094 TCA '97|
|Money Lenders licence||Consumer Credit Act 1995 plus S1094 TCA '97|
|Mortgage or Credit Intermediaries authorisation||Consumer Credit Act 1995 plus S1094 TCA '97|
|Road Transport licence (Merchandise)||EU (Merchandise Road Transport) Regulation 1991-1999|
|Road Transport licence (Passengers)||EU (Road Passenger Transport) Regulations 1991-1999|
|Refugee Legal Service Private Practitioners Panel||Circular F49/29/84 (on the basis that this is a contract) plus S1095 TCA '97|
|Payments under the FAS Employment Subsidy/Training Scheme and PRSI Exemption Scheme||Circular F49/13/87 (grant) plus S1095 TCA '97|
|Disposal of land to Local Authorities (not Compulsory Purchase Order)||Circular F49/29/84 (contract) plus S1095 TCA '97|
|Local Authority loans scheme (Shared ownership)||Housing Regulations, 1980 (Amendment) Regulations 1992|
|Permits for Waste Collection activities (including slurry spreading)||Waste Management (Collection Permit) Regulations 2001|
|Employers employing Non-nationalsEmployers seeking to employ non-nationals||DOPE requirement - condition imposed for grant of permit|
|Licences for small public service vehicles e.g. Taxis and hackneys (See paragraph d)||Section 37 of the Taxi Regulation Act 2003|
|Private Security Services (includes Directors in case of a Corporate Body And partners in the case of Partnership)||Private Security Services (includes Directors in case of a Corporate Body And partners in the case of Partnership)|
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