Clearance Certificate


Clearance Certificate
A certificate that verifies that an entity has paid all its tax liabilities at the time that the entity ceases to exist or is transferred to a new owner. A clearance certificate is not required in all jurisdictions.

There are many different situations to which a clearance certificate may apply. A business may be required to obtain an income tax clearance certificate when it decides to dissolve. An estate whose assets have a high value may be required to obtain an estate tax clearance certificate when the estate owner dies and the estate's assets are distributed to heirs. A sales tax clearance certificate allows someone purchasing an existing business to ensure that they will not be responsible for any unpaid sales taxes upon becoming the business' new owner.


Investment dictionary. . 2012.

Look at other dictionaries:

  • clearance certificate — A certificate issued by a statutory body signifying that they are not owed any money in regards to a certain file or company. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • clearance certificate — / klɪərəns səˌtɪfɪkət/ noun a document showing that goods have been passed by customs …   Dictionary of banking and finance

  • clearance certificate — Issued to ship s captain showing that customs requirements have been made …   Black's law dictionary

  • clearance certificate — Issued to ship s captain showing that customs requirements have been made …   Black's law dictionary

  • tax clearance certificate — USA A certificate issued by most states generally to certify that a taxpayer has filed all tax returns due and paid all taxes and certain other amounts owed as of the date of the certificate. A tax clearance certificate must be requested on a… …   Law dictionary

  • clearance — [klir′əns] n. 1. an act or instance of clearing 2. the clear space or distance between moving objects or mechanical parts, or between a moving object and that which it passes through, over, under, etc. 3. official, esp. governmental,… …   English World dictionary

  • Clearance — Clear ance (kl[=e]r ans), n. 1. The act of clearing; as, to make a thorough clearance. [1913 Webster] 2. A certificate that a ship or vessel has been cleared at the customhouse; permission to sail. [1913 Webster] Every ship was subject to seizure …   The Collaborative International Dictionary of English

  • Clearance space — Clearance Clear ance (kl[=e]r ans), n. 1. The act of clearing; as, to make a thorough clearance. [1913 Webster] 2. A certificate that a ship or vessel has been cleared at the customhouse; permission to sail. [1913 Webster] Every ship was subject… …   The Collaborative International Dictionary of English

  • certificate —   Palapala (for various kinds, see Haw. Eng. entry and entries that follow it); palapala hō oia, palapala hō ike.    ♦ Certificate of identification, palapala kuhikuhi kino.    ♦ Birth certificate, palapala hānau.    ♦ Certificate of merit,… …   English-Hawaiian dictionary

  • clearance — n. 1 the removal of obstructions etc., esp. removal of buildings, persons, etc., so as to clear land. 2 clear space allowed for the passing of two objects or two parts in machinery etc. 3 special authorization or permission (esp. for an aircraft… …   Useful english dictionary