Tax Clearance Certificate (TCC) is one of the most important documents in South Africa. The document demonstrates your ability to pay taxes and comply with SARS’ laws and other regulations. Today, not having this document would mean missing promising opportunities for your company. But how do you apply for SARS tax clearance? If you need this document, we are glad you bumped into this article. We will guide you on how to get this document fast and easily.
TCC is required when applying for a contract and RFQ’s or government tenders. Previously, TCC used to be applied for manually by filling out a form and submitting it to the SARS office. But things have changed. There are new methods that you can use to get the document. But before we look at these methods, let us first explain what it is for better understanding.
What is a Tax Clearance Certificate?
Tax Clearance Certificate, for those who do not know, is simply a piece of official documentation that shows proof that your business has no outstanding tax. Having this certificate means you are in SARS’ good books.
How can you get a Tax Clearance Certificate in South Africa?
The South African Revenue Service is the only entity that can issue you a clearance certificate. However, there are various ways to get a tax clearance for a new business. Here are the most common methods you can use:
Method 1: Applying online through SARS’s e-portal
The first method is applying online via eFiling site. This method is effective but can be time-consuming, especially if you do not know what documentation is needed and in what format. Here are the steps you should follow when using this method:
- Login to SARS’s e-portal.
- Click the Tax Status button on the main menu.
- When you click on the button, a sidebar will appear. Click on Tax Compliance Status.
- If there are any outstanding issues, make sure you sort them out before you move to the next step.
- If you have no outstanding issues, look for Compliance Status Report and click on it. (The Compliance Status Report item will lead you to a screen with your business details)
- Look for Status of Existing Request.
- Got it? Now follow on to Good Standing or Tender.
- Look for Compliance Indicator.
- If your application was accepted, you should see a green indicator stating compliance under Compliance Indicator.
- Look for a “select” button next to Compliance Indicator and click on it.
- After that, click on Print.
Method 2: Visit the SARS local office
If the first method is not for you, you can queue at a SARS office near you. This option can be time-consuming, especially if the nearest office is far from your area of residence. However, the staff members will help you with the application process and solve any problems you may have encountered when applying online.
Method 3: Hire a professional
This is the easiest and probably the best method of getting a SARS Tax Clearance Certificate. It is quite simple: all you need is to hire a professional who will visit SARS and apply for the certificate on your behalf. You do not need to figure out what, how and where you need to submit your details and the required documentation. The tax professional will do all the work for you. It is important to ensure you hire accounting professionals that you can trust.
Is the clearance certificate compulsory when applying for contracts and RFQ’s tenders? Usually, yes. As we mentioned earlier, a Tax Clearance Certificate SARS is the only proof that you do not have any issues with the authorities.
There you have it. That is how small businesses get Tax Clearance Certificates in South Africa. If you have a small business and need this document, you can use any of the three methods to get it.
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