What Is a Tax Clearance Certificate?
A tax clearance certificate (now referred to as a “Tax Compliance Status” or TCS) confirms that your business’s tax affairs are in order. Many government tenders, finance applications and corporate clients require a valid certificate.
Steps to Get a TCS
- Ensure Compliance:
- File all outstanding tax returns (income tax, VAT, PAYE) and pay any amounts due.
- Update your details with SARS (address, contact information).
- Apply via eFiling:
- Log in and select “Tax Compliance Status” under the “Tax Status” menu.
- Choose the type of TCS you need: tender, good standing, or emigration/foreign investment.
- Submit the request and track the status.
- Receive PIN Instead of a Paper Certificate:
- SARS issues a TCS PIN valid for one year.
- Share the PIN with the tender issuer or funder so they can verify your status online.
- Maintain Compliance:
- Keep your tax affairs up to date to avoid your TCS being withdrawn.
- Monitor expiry dates and renew your TCS as needed.
Tips
- Begin applying well in advance of tender deadlines to avoid last-minute issues.
- Keep accurate accounting records to simplify compliance.
- Use a tax practitioner if your affairs are complex.