A Tax Clearance Certificate (TCC) is an official document issued by the South African Revenue Service (SARS).
It is a confirmation from SARS that you have fulfilled your tax obligations and that you’re in good standing with the tax authorities.
In South Africa, a TCC is an important document that is used to prove that you are a responsible taxpayer.
What is a Tax Clearance Certificate?
A Tax Clearance Certificate is a document that certifies that you meet your tax obligations.
It is issued by the South African Revenue Service (SARS).
This document confirms that your taxes are up to date, that you have paid all of your taxes, and that you are in good standing with SARS.
There are many instances where you will need a tax clearance.
When applying for a job, opening a business, or registering with a professional body, you may be asked to provide a Tax Clearance Certificate.
This document is also required when applying for government tenders or contracts.
It is a key document that is used to prove that you are a responsible taxpayer.
Who Needs a Tax Clearance Certificate?
Any person or business operating in South Africa needs to have a Tax Clearance Certificate.
This includes individuals, partnerships, companies, close corporations, trusts, and any other entity that is registered for income tax.
It is important to note that you need to renew your Tax Clearance Certificate each year.
This is to ensure that all of your tax affairs are in order and that you are up to date with your taxes.
Requirements for a Tax Clearance Certificate
To apply for a Tax Clearance Certificate, you must first meet the following requirements:
- You need to be registered for income tax.
- You must be up to date with all tax payments.
- You must not have any outstanding tax debts.
- You must not have any outstanding tax returns.
It is important to note that if you have any outstanding tax debts or returns, you will not be able to obtain a Tax Clearance Certificate.
You must first settle these debts and you need to submit any outstanding returns before you can obtain a Tax Clearance Certificate even if you already applied.
How to Check Tax Compliance Status to Ensure You Are Compliant with All the Requirements
Checking your tax complaint status is a very simple task.
It is also a useful task to check whether you are compliant with all the requirements that need to be met to apply for a Tax Clearance Certificate.
The following process is the easiest way to check whether you are compliant.
- Once you have activated the Tax Compliance Status system in eFiling, click on the Tax Status button in the top menu.
- In the left-hand side menu, click Tax Compliance Status.
- Under Tax Compliance Status, click My Compliance Profile.
This process will then take you to your Tax Compliance Status page where you will be able to view whether you are tax compliant or not.
You should get out to this page.
As you can see from the picture above, the entire profile is in green and therefore compliant. This means I will be able to apply for a Tax Compliance Certificate.
Should any of the sections in the profile be red as in the picture below, it will mean that you are non-compliant for that specific section and therefore also non-compliant overall.
Click on the relevant sections in red to see what the issues are so that you can rectify them and get them back in the green.
How to Apply Online For You and Your Business
In order for you to apply for a certificate, you must first be registered for eFiling.
eFiling is an online application system provided by SARS. It is used to submit returns, make payments, and apply for documents.
Once you have registered for eFiling, you can then log in to the system and apply for a Tax Clearance Certificate using the Tax Compliance Status system.
To do this, you must follow the steps below:
- Log in to your eFiling account.
- Select “Services” from the menu at the top of the page.
- Select “Tax Clearance Certificate” from the drop-down menu.
- Select the type of Tax Clearance Certificate you require
- Enter the requested information.
- Submit your application.
Following the process above it should take you to this page.
Once you have submitted your application, your certificate will be processed as soon as possible.
Your certificate will then be emailed to you, so you will be able to print it, together with your Tax Compliance Status Pin.
What if You Have Already Activated the Tax Compliance Status System?
If you have already activated the Tax Compliance Status system on your eFiling profile then all you will need to do is to click on ‘Tax Status’ in the top menu.
Once you have clicked on the ‘Tax Status’ located in the top menu then click on ‘Tax Compliance Status Request’ in the menu on the left of your screen.
You will then be able to select the request type from the ‘New Compliance Request’ dropdown box.
You can select from the following request types:
- Tender;
- Good Standing;
- Foreign Investment Allowance; or
- Emigration
After you have made your selection then click on the ‘Request’ button.
This will then submit your request.
Once the application has been finalised on SARS’s side they will then email the Tax Clearance Certificate together with the Tax Compliance Status Pin.
The Pin will be needed should you be tendering.
How to Check Your Application Status
Once you have applied for a Tax Clearance Certificate, you can check the status of your application at any time.
To do this, you must log in to your eFiling account and select “Tax Clearance Certificate” from the drop-down menu.
On this page, you will be able to view the status of your application as well as the date it was submitted.
Benefits of Having a Tax Clearance Certificate
Having a Tax Clearance Certificate is beneficial for several reasons.
Firstly, it provides peace of mind that your tax affairs are in order.
Furthermore, it can make it easier to apply for jobs, open businesses, and register with professional bodies.
It is also a requirement for government tenders and contracts, so having a TCC can be beneficial in this regard.
How to Renew Your Certificate Certificate
Your Tax Clearance Certificate is valid for one year.
Once your certificate has expired, you will need to renew it.
Renewing your Tax Clearance Certificate is simple and can be done online.
To renew your certificate, you must follow the same steps as above.
FAQs About Tax Clearance Certificates
How long does the process take?
SARS suggests that the application submission will be processed and completed within a quick reasonable time.
Is a Tax Clearance Certificate required for government tenders and contracts?
Yes, a Tax Clearance Certificate is required for government tenders and contracts.
Do I need to renew my certificate every year?
Yes, your Tax Clearance Certificate is valid for one year and must be renewed annually.
Can I check the status of my certificate application?
Yes, you can log in to your eFiling account to check the status of your application.
Conclusion
A Tax Clearance Certificate is an important document that is used to prove that you are a responsible taxpayer in South Africa.
It is required when applying for jobs, opening businesses, registering with professional bodies, and applying for government tenders or contracts.
To obtain a Tax Clearance Certificate, you must first be registered for income tax and must not have any outstanding tax debts or returns.
You can then apply for a Tax Clearance Certificate online.
Lastly, you must renew your Tax Clearance Certificate every year.
Need assistance obtaining your tax clearance certificate?
Give us a shout, and our team of tax practitioners will surely be able to assist you.
Recent Comments