Why land, building and licence offices ask for a TCC

A tax clearance certificate for a certificate of occupancy, building approval or trade licence is a legal requirement, not an extra agency check.

3 min readBy the Docufy editorial team

Quick answer

A tax clearance certificate is required by law for certificates of occupancy, building plan approvals, government contracts, firearms licences, import and export licences, and trade licences. A state example: state bodies must not accept a trade or professional licence unless the holder has a valid TCC. It is not an extra check invented by the office you are dealing with; it is written into the tax law itself.

Required by law for
certificates of occupancy, building plan approvals, government contracts, firearms licences, import and export licences, and trade licences
Oyo State rule
state bodies must not accept a trade or professional licence unless the holder has a valid TCC
Who has to ask for it
any government body dealing with you on these
Where it starts
your Tax ID and three years of returns
On this page

Someone applying for a building approval or a trade licence does not expect to be asked for a tax document. It comes as a surprise to a lot of people, right up until they read the actual law.

The list of things a tax clearance certificate is tied to is wider than tenders and bank loans.

The law behind this list

A tax clearance certificate is required for certificates of occupancy, building plan approvals, government contracts, firearms licences, import and export licences, and trade licences. Property paperwork and personal or trade licences sit on that list by name, not as an informal add-on some offices invented.

The law places the duty on the government side too. A ministry, department or agency handling one of these matters must ask for the certificate. It is a condition of dealing with you, not an optional extra.

Certificates of occupancy and building plan approval

Land and building work is one of the clearest examples. A certificate of occupancy and a building plan approval both sit inside the statutory list. That is why some land offices now build a TCC check into their own process.

If you are part-way through either of these and have not been asked yet, check anyway. Do not assume the rule skips your case.

Firearms, import-export and trade licences

The licence side of the list covers firearms licences, import and export licences, and trade licences. These sit next to the property matters above, under the same rule, even though they look unrelated at first glance.

A trade licence renewal is the one most small business owners actually meet. It is easy to assume a trade licence office only cares about local paperwork. Then a TCC request shows up in the requirements.

A state example: Oyo enforcing the rule directly

This is not just a quiet line in a federal act. State bodies must not accept a trade or professional licence unless the holder has a valid TCC. That is one clear, documented case of a state office applying the rule to real transactions, not leaving it on paper.

Other states may apply the same rule with less publicity. That is exactly why it catches people off guard. Assume the rule is live wherever you deal with a government office on one of these matters. Do not assume it only applies somewhere else.

What to do if an office asks for a TCC you did not expect

Treat the request as routine, not as a sign something is wrong with your application. Start gathering your Tax ID, your returns for the last three years and your accounts as soon as you know a certificate is needed, since these underpin every version of a TCC application, whatever triggered the request.

Our checklist of documents for a TCC application covers exactly what to prepare. Once you are ready, the tax clearance certificate page is where a vetted partner firm can take it from there, and our NRS tax hub has more on the Tax ID that sits behind every application.

Questions people ask

Why would a land or building office ask for a tax clearance certificate?

Because the law names certificates of occupancy and building plan approvals directly among the matters where certificates of occupancy, building plan approvals, government contracts, firearms licences, import and export licences, and trade licences, alongside government contracts and several licence types.

Does every state enforce this the same way?

The underlying federal law applies nationally, but enforcement can vary by office. State bodies must not accept a trade or professional licence unless the holder has a valid TCC is one documented example of a state body applying it directly to licensing.

What licences besides trade licences are covered?

Firearms licences and import-export licences sit on the same statutory list, alongside government contracts and property matters. It is a broader list than most people expect.

What if an office asks for a TCC and I do not have one ready?

Start the application as soon as you know it is needed. Our checklist of documents for a TCC application covers what to gather first.

Sources

Last checked 27 Sep 2026. Fees and rules change; the agency that issues the document has the final word. See our editorial policy.

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