How to get a letter of good standing: a step-by-step guide
There are various letters of good standing, including a tender, foreign investment, tax clearance, COIDA, and emigration letters. This article only explains how to get the COIDA and tax clearance letters of good standing. A COIDA letter confirms your company is registered with the South African Workman’s Compensation Fund and that your contributions are up-to-date. On the other hand, a tax clearance letter of good indicates that the employer/company does not have outstanding tax returns with SARS.
Source: UGC
TABLE OF CONTENTS
- How can you get a letter of good standing in South Africa?
- Process for COIDA letter of good standing registration online
- Process for letter of good standing registration at Compensation Fund’s offices
- How to get a SARS letter of good standing online
- What are the conditions for a COIDA letter of good standing?
- Why do you need the COIDA letter of good standing?
- Department of Labour's letter of good standing contact details
- How many types of letters of good standing are there?
- Is a letter of good standing compulsory in South Africa?
- What is the difference between COID and SARS letters of good standing?
- Where can you get a letter of good standing in South Africa?
- What is the letter of good standing price?
- What is a letter of good standing by the SARS?
- What is the letter of good standing for tax clearance used for?
- What is COIDA in South Africa?
- Where can you get a COIDA letter of good standing South Africa sample?
A COIDA letter of good standing acts as insurance coverage when you need the Workman’s Compensation Fund to pay for work-related injuries, illnesses, disabilities, and deaths your employees encounter. Meanwhile, a tax compliance certificate, also known as a SARS letter of good standing, proves you have submitted all of your tax returns to SARS. The document can be used to obtain contracts and tenders.
How can you get a letter of good standing in South Africa?
Obtain a COIDA letter of good standing from the Department of Labour's website issues or at the Compensation Fund's offices. Meanwhile, you can get a SARS/tax clearance letter of good standing from SARS. You can only obtain both documents after submitting a Return of Earnings (ROE).
Additionally, to get a COIDA letter of good standing, ensure your contributions to the Workman's Compensation Fund are up-to-date. You can verify COIDA letter of good on the Department of Labour's website using a unique Certificate Number available on the document.
Process for COIDA letter of good standing registration online
Any employer with one or more employees must register with the Workman's Compensation Fund. This removes any liability on the employer's side should an employee suffer harm, fall sick, or die from work-related activities. Here is how to get a COIDA letter of good standing in South Africa:
- Visit the Department of Labour's website.
- Click "Online Services."
- Choose "ROE Online (cfonline.labour.gov.za)."
- Click "LOGS - Letter of Good Standing."
- Those new to the website should tap "Click Here To Register" and register. Meanwhile, those who have already registered can enter their username and password and then tap "login."
- After logging into the portal, follow the prompts and make a COIDA letter of good standing request.
Source: UGC
Process for letter of good standing registration at Compensation Fund’s offices
You can apply for a COID letter of good standing from the Department and Labour at the Compensation Fund's offices. Follow these steps:
- Visit Compensation House, 167 Thabo Sehume Street, Delta Heights Building, Pretoria.
- Fill out the forms you will be given and ensure your application is successful before leaving the Compensation Fund’s offices.
- You will receive your COID Registration Number via email.
- You will also receive a "Notice of Assessment" from the Compensation Fund via email, which is payable directly into the Compensation Fund's bank account.
- Afterward, you can apply for your COIDA letter of good standing at the Compensation Fund's offices.
The assessment fee covers your business for Workman's Compensation. You can pay the assessment off over 2, 3, or 6 months or make an initial payment of 20% and complete the rest in installments. The installments must be completed within at least 14 days before the expiry of your letter.
The Department of Labour issues an employer the COIDA letter of good standing once a year or monthly, depending on the arrangements between the employer and the Workman’s Compensation Fund.
Renew your COIDA letter of good standing before 30 April annually, regardless of the date you applied for your first letter.
How to get a SARS letter of good standing online
SARS issues a company or employer one tax clearance letter of good standing once a year. You can request your Tax Compliance Status (the tax clearance certificate) via the SARS Online Query Service webpage.
Visit the SARS Online Query Service webpage, fill out the required fields, and click "Generate Form" to access the document. The system will only generate the form for you if you do not have any outstanding Return of Earnings (ROE) with SARS.
What are the conditions for a COIDA letter of good standing?
An employer can only obtain the letter if they comply with these COIDA requirements:
- All outstanding debt must be settled before the letter can be renewed.
- The applicant must be duly registered with the Compensation Fund.
- The employer must be fully assessed and given a Notice of Assessment.
- The employer must have submitted all statements of earnings as set out in the COIDA.
Source: UGC
Why do you need the COIDA letter of good standing?
Here are the primary reasons one may need to get a letter of good standing:
- It shows you do not owe the Compensation Fund any amount.
- It proves you have adhered to the law requiring all employers to register with the Workman's Compensation Fund.
Department of Labour's letter of good standing contact details
You can report the forged tax clearance and COIDA letters of good standing to telephone number 0800 234 432, SMS number 30916 or cf-fraud@thehotline.co.za.
For inquiries concerning tax clearance and COIDA letters of good standing, contact the Workman’s Compensation Fund through these channels:
- Location: Compensation House, 167 Thabo Sehume Street, Delta Heights Building, Pretoria
- Phone: 012 319 9163 / 012 306 5843 / 086 010 5350
- Postal address: PO Box 955, Pretoria, 0001
- Website: www.labour.gov.za
How many types of letters of good standing are there?
There are various types of letters of good standing, including a tender, foreign investment, emigration, tax clearance, and COIDA letters of good standing. When trading with other companies, most entities simply ask for a tax clearance letter of good standing.
Is a letter of good standing compulsory in South Africa?
An individual or a company doing business in South Africa must have a COIDA letter of good standing from the Department of Labor and a SARS/tax clearance letter of good standing from SARS.
What is the difference between COID and SARS letters of good standing?
A COID letter of good acts as an insurance document. It enables the employer to get payment from the South African Workman’s Compensation Fund when the employees fall ill, get injured, or die from work-related activities. Meanwhile, a SARS letter of good standing is a tax compliance certificate that confirms you do not have unfiled tax returns with SARS. You can use the document to obtain tenders and contracts.
Where can you get a letter of good standing in South Africa?
Get a COIDA letter of good standing from the Department of Labor and a SARS/tax clearance letter of good standing from SARS.
Source: UGC
What is the letter of good standing price?
Obtaining a tax compliance letter of good standing is free at SARS. Meanwhile, the price for a COID letter of standing varies with the experts you hire. You can spend less if you apply for the document by yourself on the Department of Labor's website.
The COID Letter SA company charges R1399 to help you get a COIDA letter of good standing within 10 working days and R1999 within 7 working days. Meanwhile, the CIPC Registrations company charges R1800 for COID registration and applying for a letter of good standing. You pay them R1350 to renew your letter of good standing.
How to renew a letter of good standing online in South Africa?
Renew a COID letter of good standing via the Department of Labour's website and a SARS/tax clearance letter of good standing on the SARS website.
What is a letter of good standing by the SARS?
The SARS letter of good standing is a tax clearance certificate an employer or company receives after filing tax returns/Return of Earnings (ROE).
What is the letter of good standing for tax clearance used for?
A SARS letter of good standing is essential when looking for tenders and contracts with other businesses. It indicates that your business does not have outstanding tax returns with the South African Revenue Service (SARS).
What is COIDA in South Africa?
COIDA is an acronym for the Compensation for Occupational Injuries and Diseases Act. 130 of 1993. This South African law provides for compensation for disablement caused by occupational injuries or diseases sustained or contracted by employees in the course of their employment or for death resulting from such injuries or diseases.
Where can you get a COIDA letter of good standing South Africa sample?
Check out samples of COIDA letters of good standing from the Department of Labour on the Facebook page COIDA Letter of Good Standing, @coidaletter.
A COID letter of good standing is essential just like a SARS letter of good standing. You cannot do business in SA without these documents. The South African Department Labour and SARS has made the online application process for these documents straightforward.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Briefly.co.za explained how to confirm a company is registered in South Africa. The business landscape in SA is quite vibrant, with thousands of firms in different economic sectors.
Most firms are fully registered and operate legally per the country's laws. Others, however, are not registered. So, background checks should be done on companies before doing business with them.
Source: Briefly News
Jedidah Tabalia Jedi is a journalist with over 5 years working experience in the media industry. She has a BSc. in Human Resource Management from Moi University (graduated in 2014) and a working in progress MBA in Strategic Management. Having joined Genesis in 2017, Jedi is a passionate Facts and Life Hacks, Fitness, and Health content creator who sees beauty in everything. She loves traveling and checking out new restaurants. Her email address is jedidahtabalia@gmail.com
Peris Walubengo (Lifestyle writer) Peris Walubengo is a content creator with 5 years of experience writing articles, researching, editing, and proofreading. She has a Bachelor of Commerce & IT from the University of Nairobi and joined Briefly.co.za in November 2019. The writer completed a Google News Initiate Course. She covers bios, marketing & finance, tech, fashion & beauty, recipes, movies & gaming reviews, culture & travel. You can email her at perisrodah254@gmail.com.
