A Tax Clearance Certificate is a document issued by the VDC or municipality which states that an individual has no outstanding taxes and is paying all required income and property taxes regularly to the government.
This certificate serves as official proof that an individual’s tax affairs are in order and up-to-date. The certificate provides assurance to businesses, financial institutions, and other organizations that the individual has fulfilled their tax obligations and is in good standing with the government.
Note: In the tax clearance certificate, applicant must include the name of sponsors which have shown their income source in Annual Income Certificate.
Following is the sample of Tax Clearance Certificate in Document Format. (Edit the sample as per the requirements.)
Format for Tax Clearance Certificate
Ref.No.: Date:
Subject: Tax Clearance Certificate
TO WHOM IT MAY CONCERN
This is to certify that Mr. father’s name and Mrs. mother’s name, father and mother of Mr./Ms. applicant name are permanent resident of name of municipality, ward no…. , city, Nepal (Previously your old municipality name), have paid all their taxes related to their income and land & building till the fiscal year …… A.D. as per the rule of Government of Nepal.
I further certify they don’t have any due tax till date. If you require any further information, please feel free to contact us.