A Tax Clearance Certificate (TCC) proves your business is up to date with its tax duties at SARS. In South Africa, you no longer get a physical paper certificate. Instead, SARS issues a Tax Compliance Status (TCS) PIN that you give to whoever asks for it, like a government department or a bank.
Why You Need a Tax Clearance Certificate
If you want to do business in South Africa, you will need to prove your tax compliance. The Central Supplier Database (CSD) requires a valid TCS PIN before you can register to bid for government tenders. You also need it to apply for government funding from institutions like SEFA or the NYDA. Keep in mind that having your tax affairs in order makes you funding-ready, but the funder always makes the final decision.
Private companies also ask for your tax clearance. If you want to contract with large corporates or mining houses, they will ask for your TCS PIN to ensure they are dealing with a compliant supplier. Banks also ask for it when you open a business bank account or apply for a business loan.
How to Get Your Tax Clearance PIN
Getting your tax clearance is a step-by-step process on the SARS eFiling platform. You must be registered as an organisation on eFiling before you start.
- Log into your SARS eFiling profile and navigate to the Tax Compliance Status (TCS) menu.
- Verify that all your outstanding tax returns are submitted. This includes income tax, PAYE, and VAT if you are registered for them.
- Ensure you have no outstanding tax debt. If you owe SARS, you must pay it or make an official instalment arrangement.
- Click on the option to request a Tax Compliance Status.
- Select the reason for your request. The most common reasons are "Tender" or "Good standing".
- Submit the request. SARS will immediately check your profile and issue a TCS PIN if you are fully compliant.
Once you have the PIN, you can give it to the person or organisation requesting it. They will type the PIN into the SARS system to view and verify your compliance status.
What to Do if SARS Rejects Your Request
If SARS does not issue your TCS PIN, it means there is a problem with your tax profile. The eFiling system will usually tell you the exact reason. The most common reasons are outstanding returns or unpaid taxes.
If you have outstanding returns, you must complete and submit them on eFiling before requesting your tax clearance again. If you owe SARS money, you must pay the debt. If you cannot afford to pay the full amount, you can apply for a compromise of debt or an instalment agreement. Once SARS approves your payment plan, you can usually get your tax clearance, provided you keep up with the monthly payments.
Sometimes the issue is a simple administrative error, like a mismatched bank detail or an unverified address. If you cannot see the exact reason on eFiling, you should visit a SARS branch or call the SARS contact centre for help.
How KAGO Can Help You
Navigating SARS and CIPC at the same time can be frustrating for a first-time entrepreneur. At KAGO, we help you get your business registered and compliant so you can focus on running your business. Our Compliance Kit costs R2,495 and helps you sort out your CIPC documents, SARS registration, and other essential compliance steps.
We do not promise or guarantee funding, but we make sure your paperwork is ready for when you approach funders. A clean SARS record is the first step to building a trustworthy business profile.
Keeping Your Tax Clearance Valid
Your Tax Compliance Status is not a once-off document. It is a live status on the SARS system. The PIN you receive stays active as long as you remain compliant.
If you miss a tax return deadline or fall behind on a tax payment, your status will automatically change to non-compliant. The PIN will no longer work for the person checking it. You must make it a habit to submit your returns on time and pay your taxes when they are due. This is the only way to keep your tax clearance valid for tenders and contracts.
Tax Clearance for New Companies
If you just registered a new company, you might wonder how you can get a tax clearance if you have not traded yet. SARS allows new businesses to get a tax clearance for "Good standing". Because you have no income or expenses yet, you simply submit a zero return. SARS will see that you owe nothing and have no outstanding returns, and they will issue your TCS PIN.
This is very important for new businesses. You need that tax clearance to open a business bank account, which you need to start trading. Getting your tax clearance early sets a strong foundation for your business.
Questions people also ask
How long does a tax clearance certificate last?
Your Tax Compliance Status is a live status on the SARS system, so it does not have a fixed expiry date. It remains valid for as long as you submit your returns on time and pay any taxes you owe.
Can I get a tax clearance if I owe SARS money?
Usually you cannot get a tax clearance if you have outstanding tax debt. However, if you sign an instalment agreement with SARS and keep up with the payments, they may issue your TCS PIN.
How much does it cost to get a tax clearance from SARS?
SARS does not charge any fee to issue your Tax Compliance Status PIN. You can request and receive it for free directly on your eFiling profile if your tax affairs are in order.
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