Tax Clearance Certificate in Ireland: What you need to know

If you’re working, running a business, or contracting in Ireland, you might have heard of a Tax Clearance Certificate, or TCC for short. 

Whether you're a sole trader, a company director, or even applying for a government contract, this certificate can be a key requirement. 

In this article, we’ll take a closer look at what a Tax Clearance Certificate is, the types available, who needs one, and how you can apply for one in Ireland. We’ll also touch on how to easily request a Tax Credit Certificate online with Taxback!

What is a Tax Clearance Certificate?

A Tax Clearance Certificate (TCC) is an official document issued by the Revenue Commissioners of Ireland. 

It confirms that your tax affairs are up to date and in compliance with Irish tax laws. 

Having tax clearance means that you’ve successfully filed your tax returns and paid all due taxes (or have agreed to a payment plan for any outstanding taxes). 

The certificate is typically required when:

• You’re applying for certain public sector contracts.

• You need to receive government grants or subsidies.

• You’re involved in industries where tax clearance is a legal requirement, such as construction or public procurement.

• You’re a self-employed individual (e.g., a sole trader) applying for specific permits or licenses.

While businesses and individuals often need this certificate for specific purposes, it’s generally a good practice to ensure that your tax obligations are in order.

Types of Tax Clearance Certificates

There are two main types of Tax Clearance Certificates available in Ireland:

1. eTax Clearance: This is an electronic certificate issued by Revenue. It’s the most common type of tax clearance and is automatically verified by third parties (such as government departments or contracting authorities) through the Revenue system. Once issued, it can be accessed at any time through ROS or MyAccount on the Revenue website.

2. Temporary Tax Clearance: This is a short-term tax clearance, usually given when an individual or company has taxes due but is in the process of settling them via an approved payment plan. Temporary tax clearance allows the person or business to proceed with certain activities while they work on resolving their outstanding taxes.

Does a sole trader need a Tax Clearance Certificate?

Yes, sole traders often need a Tax Clearance Certificate for various reasons, particularly if they are working with government bodies or applying for certain licenses and permits.

For example, if you're a sole trader in the construction industry, you may need tax clearance to secure public contracts. 

In addition to public contracts, some private companies also require their subcontractors or freelancers to present tax clearance certificates to prove their tax compliance. 

While not mandatory for every sole trader, it’s a good practice to apply for tax clearance to avoid any delays when opportunities arise that require it.

The average Irish tax refund is €1,880

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How to request Tax Clearance and Tax Credit Certificates online 

While a Tax Credit Certificate (TCC) is different from a Tax Clearance Certificate, it’s another vital document for anyone working in Ireland. 

A Tax Credit Certificate outlines the amount of income tax you should pay based on the tax credits and reliefs you’re entitled to. 

This document helps employers calculate how much tax to deduct from your pay, ensuring that you don’t overpay.

You can request both documents one of two ways. The first is by yourself online through Revenue’s MyAccount portal, but many people find this process confusing or too time-consuming.

That’s where Taxback can help!

Our service will ensure that you secure your Tax Credit and Tax Clearance Certificates.

Remember, a Tax Clearance Certificate is an essential document for anyone operating a business or self-employed in Ireland, especially if you plan to work with government bodies or public contracts.

Applying for one is simple when you use Taxback!

By staying on top of your tax obligations, you’ll not only avoid penalties but also position yourself or your business for new opportunities. Whether you’re a sole trader, contractor, or business owner, securing a Tax Clearance Certificate will keep you compliant and ready for what’s next!

Choose Taxback to secure your Tax Clearance Certificate today!