Tax Clearance

Tax clearance refers to the process of verifying that an individual or business has fulfilled all their tax obligations with the government. It usually involves obtaining a certificate or letter from the tax authority, confirming that no outstanding taxes, penalties, or fees are owed. This is often required for various transactions, like applying for loans, selling property, or bidding on government contracts. Essentially, it serves as proof of good standing regarding tax responsibilities, ensuring that the entity complies with tax laws and regulations.