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WHY YOU NEED A TAX CLEARANCE CERTIFICATE — AND HOW TO GET ONE IN SOUTH AFRICA

  • Fred Akal
  • Jun 9
  • 2 min read
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If you're a South African business owner looking to work with large clients, apply for funding, or bid for tenders, you’ll quickly hear the phrase: “We need a valid Tax Clearance Certificate.”


But what exactly is it? How do you get one? And what can go wrong?

In this article, we explain everything you need to know about getting and maintaining your Tax Compliance Status (TCS), and how an experienced accountant can help you avoid costly delays or rejections.

 

What Is a Tax Clearance Certificate?

A Tax Clearance Certificate (now referred to as a Tax Compliance Status Pin) is an official confirmation from SARS (the South African Revenue Service) that your tax affairs are up to date.

This includes:

  • Income tax

  • VAT

  • PAYE/UIF

  • Provisional tax

  • And any penalties or returns due

 

Why You Might Need One

Your TCS is required when you:

  • Apply for government or corporate tenders

  • Register as a government supplier on the CSD (Central Supplier Database)

  • Apply for business funding or loans

  • Enter into contracts with certain clients

  • Emigrate or transfer large sums overseas

No valid TCS = missed opportunities.

 

How to Get a Tax Compliance Status (TCS)

You can apply for a TCS online via SARS eFiling by following these steps:

  1. Login to eFiling

  2. Go to “My Compliance Profile”

  3. Click “Tax Compliance Status”

  4. Choose the type of TCS you need (e.g., for tender, foreign investment, etc.)

  5. Submit the application and generate a PIN

This PIN can be shared with third parties who will then verify your status directly with SARS.

 

Common Reasons for Rejection

Even one missed submission or underpayment can cause your TCS to be flagged as non-compliant. Common issues include:

  • Late VAT or PAYE submissions

  • Missing income tax returns

  • Outstanding penalties

  • Incorrect SARS profiles (e.g., inactive tax types)

Getting your TCS rejected just days before a tender deadline can cost your business millions in lost contracts.

 

How We Can Help

At ACS Plus, we help businesses:

  • Correct SARS non-compliance

  • Resolve disputes or penalties

  • Manage and maintain compliance proactively

  • Submit and track TCS applications quickly

Whether you're applying for your first certificate or dealing with a sudden rejection, we’ll help you avoid delays and secure your business opportunities.

 

Don’t Wait for a Crisis

A TCS is not just a formality — it’s a gateway to growth. The earlier you get your tax affairs in order, the faster your business can scale.


Need help getting your Tax Clearance Certificate?Book a free compliance review with our expert team today.


Email queries@acsplus.co.za with the header: Tax Compliance

 

 
 
 
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