A Tax Clearance Certificate is written confirmation from the South African Revenue Services (SARS) that a person’s tax affairs are in order, at the date of issue of the Certificate.
A Tax Clearance Certificate is needed when you need to prove that you are a taxpayer. A TCC may be required for any of the following reasons:
- Tenders or Bid Applications
- Good Standing – proving that the applicant is tax compliant
- Foreign Investment Allowance (FIA)
The channels you will need to go through to apply for a Tax Clearance Certificate are as follows:
- Complete the applicable application form and hand it into a SARS branch. You can either post it to SARS or put it into a SARS drop-box. An application for a FIA or an emigration Tax Clearance Certificate must be submitted at a SARS branch.
- For a tender or good standing Tax Clearance Certificate you can complete and submit the application via eFiling.
Please note that for tender and/or good standing applications, the Tax Clearance Certificate is only valid for one year from the date of issue, provided the taxpayer is still compliant with SARS.
Reasons a Tax Clearance Certificate could be declined:
- The applicant has more than R1000 outstanding and no arrangements have been made to settle (including STC, administrative penalties and Employees Tax),
- Postponed payment arrangements were not adhered to (Income Tax / VAT, PAYE, SDL and UIF),
- Returns are outstanding and no suitable returns submission arrangement has been made with SARS.
- The Taxpayer is not registered for an Income Tax reference number.
- Taxpayers status is either inactive or is no longer registered.
- The TC Tax Clearance Certificate application has not been signed by the taxpayer or representative.
At PATC (Professional Accountants & Tax Consultants) we can assist you with your Tax Clearance application, and any outstanding tax returns that you need to submit. Contact us for advice or make an appointment to discuss this further. Your first consultation with us is FREE.