How to Obtain a Tax Clearance Certificate
A tax clearance certificate from SARS confirms your tax compliance and is often required for government tenders, contracts, and business transactions. Understanding the tax clearance application process, requirements, and validity helps you obtain this important document. This comprehensive guide covers everything you need to know about obtaining a tax clearance certificate in South Africa.
What Is a Tax Clearance Certificate?
Understanding Tax Clearance
Tax Clearance Certificate:
- Document from SARS confirming tax compliance
- Shows no outstanding tax obligations
- Required for various business purposes
- Valid for specific period
- Proof of good tax standing
When Required:
- Government tenders
- Business contracts
- License applications
- Certain transactions
- Compliance requirements
Types of Tax Clearance
Certificate Types
1. Tax Clearance Certificate (TCC):
- General tax compliance
- No outstanding tax
- Standard clearance
- Most common type
2. Tax Compliance Status (TCS):
- Real-time tax status
- Available online
- Instant verification
- Digital certificate
3. Good Standing Certificate:
- Confirms compliance
- No outstanding returns
- All taxes paid
- Good standing status
Requirements
Eligibility Requirements
To Obtain Tax Clearance:
- Registered with SARS
- All tax returns filed
- No outstanding tax debt
- No outstanding returns
- Good compliance record
Cannot Obtain If:
- Outstanding tax debt
- Unfiled returns
- Under audit (in some cases)
- Non-compliance issues
- SARS restrictions
Application Process
Step-by-Step Process
Step 1: Ensure Compliance
- File all tax returns
- Pay all outstanding taxes
- Resolve any issues
- Ensure good standing
Step 2: Log in to SARS eFiling
- Access SARS eFiling
- Log in with credentials
- Navigate to tax clearance section
- Select certificate type
Step 3: Complete Application
- Enter required information
- Select certificate type
- Verify information
- Submit application
Step 4: Receive Certificate
- Certificate issued immediately (TCS)
- Or processed within days (TCC)
- Download certificate
- Print or save digitally
Alternative: In-Person Application
- Visit SARS branch
- Complete application form
- Submit in person
- Collect certificate
Tax Compliance Status (TCS)
Online TCS
TCS Benefits:
- Available 24/7 online
- Instant verification
- Real-time status
- Digital certificate
- No application needed
How to Access:
- Log in to SARS eFiling
- Navigate to TCS section
- View compliance status
- Download certificate
- Share with third parties
Validity Period
Certificate Validity
Standard Validity:
- TCC: Valid for 12 months
- TCS: Real-time (current status)
- Good Standing: Valid for 12 months
Important:
- Check validity before use
- Renew before expiry
- Keep certificate current
- Update as needed
Common Issues
Application Problems
Issue: Outstanding Tax Debt
- Pay all outstanding taxes
- Clear all debts
- Then apply for clearance
- Resolve issues first
Issue: Unfiled Returns
- File all outstanding returns
- Complete all filings
- Then apply for clearance
- Maintain compliance
Issue: Application Rejected
- Check rejection reason
- Resolve issues
- Reapply when compliant
- Contact SARS if needed
Tips for Tax Clearance
Best Practices
- Maintain Compliance: File returns and pay taxes on time
- Check Status Regularly: Monitor tax compliance status
- Apply Early: Apply before needed
- Keep Records: Save all certificates
- Renew Promptly: Renew before expiry
Frequently Asked Questions
How do I get a tax clearance certificate?
Ensure tax compliance (all returns filed, no outstanding debt), log in to SARS eFiling, navigate to tax clearance section, complete application, and receive certificate. TCS is available instantly online.
How long is a tax clearance certificate valid?
Tax clearance certificate (TCC) is valid for 12 months. Tax Compliance Status (TCS) shows real-time status and is current as of viewing.
What if I have outstanding tax debt?
You cannot obtain tax clearance with outstanding tax debt. Pay all outstanding taxes, clear all debts, then apply for tax clearance once compliant.
Can I get tax clearance online?
Yes, you can obtain Tax Compliance Status (TCS) instantly online through SARS eFiling. Tax Clearance Certificate (TCC) can also be applied for online and processed within days.
Is tax clearance required for all businesses?
Tax clearance is required for government tenders, certain contracts, and specific transactions. While not required for all businesses, it's often needed for business opportunities and compliance.
Conclusion
Obtaining a tax clearance certificate requires ensuring tax compliance (all returns filed, no outstanding debt), applying through SARS eFiling or in person, and receiving certificate valid for 12 months. TCS is available instantly online showing real-time compliance status. Maintain compliance, file returns on time, pay taxes promptly, and renew certificate before expiry. Understanding tax clearance helps you obtain this important document and demonstrate tax compliance for business opportunities in South Africa.