Tax Clearance Certificate

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)
• Emigration.

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.

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.