Even if an employee pays tax monthly via PAYE, they may be required to file a comprehensive Annual Individual Income Tax Return (often called a Form 1 or self-assessment return) by a statutory deadline (e.g., June 30th of the following year). The annual return consolidates all income streams earned during the year, including secondary consultancy fees, rental income, and farming profits that bypassed the primary payroll system.

During the annual filing process, the taxpayer reconciles total taxes due against total taxes already paid via monthly PAYE allocations or provisional tax installments:

[ Final Calculated Annual Tax Liability ] 
                   |
                   +---> Greater than PAYE paid? ----> Taxpayer must pay a Underpayment Balance
                   |
                   +---> Less than PAYE paid? -------> Taxpayer claims a Tax Refund Due

A Tax Compliance Certificate (TCC) is an official document issued by the revenue authority confirming that an individual has successfully declared all incomes, filed all returns, and cleared all tax liabilities. Maintaining a valid TCC is a mandatory legal prerequisite for securing employment in the public sector, bidding for government contracts, or processing statutory business licenses.