If your business is bidding on government tenders, applying for certain licences, or entering into contracts with large corporates, you'll almost certainly need a SARS Tax Clearance Certificate (now issued as a Tax Compliance Status PIN). Here's everything you need to know.

What is a Tax Clearance Certificate?

A Tax Clearance Certificate — officially known as a Tax Compliance Status (TCS) confirmation — is a document issued by SARS confirming that a taxpayer is compliant with their tax obligations as of the date of issue. It confirms that all returns have been filed and any taxes owed have been paid or are subject to an approved payment arrangement.

SARS now issues tax clearance electronically. Instead of a physical certificate, you receive a Tax Compliance Status PIN that third parties (tender committees, banks, etc.) can verify directly on the SARS website.

When Do You Need a Tax Clearance Certificate?

  • Government tenders: Mandatory for all public sector contract bids above a certain threshold
  • Business licences: Liquor licences, gaming licences, and certain professional licences require tax clearance
  • CSD registration: Registration on the Central Supplier Database requires a valid TCS PIN
  • Bank financing: Many lenders require proof of tax compliance before approving business loans
  • Foreign investment: Businesses investing abroad or repatriating funds require "Good Standing" clearance
  • Emigration: Individuals emigrating from South Africa require a "Emigration" tax clearance

How to Apply for a Tax Clearance Certificate

The process is done via SARS eFiling:

  1. Log into your SARS eFiling account
  2. Navigate to "Tax Compliance Status" under the Returns menu
  3. Select the reason for application (Good Standing, Tender, Foreign Investment, etc.)
  4. Complete and submit the application
  5. If all returns are filed and no outstanding debt exists, SARS issues the TCS PIN immediately

Fast-track tip: If your eFiling returns are all up to date and you have no outstanding taxes, SARS often issues the TCS PIN within minutes of application. If there are issues, resolution can take days to weeks.

What Blocks a Tax Clearance Application?

Your application will be declined if:

  • Any outstanding SARS return is unfiled (income tax, VAT, PAYE, etc.)
  • You have an outstanding tax debt not covered by a payment arrangement
  • Your eFiling profile has incorrect or outdated information
  • A prior audit has resulted in an unpaid additional assessment

Don't wait for a tender deadline: Resolving SARS issues can take days or weeks. Apply for your TCS PIN well in advance of any tender submission or contract requirement — don't leave it for the day before.

How Long is a Tax Clearance Certificate Valid?

A Tax Compliance Status PIN is valid for 1 year from date of issue (for Good Standing). For specific tenders, the validity may be shorter. TCS PINs can be verified online by anyone with the PIN and the taxpayer's reference number.

Let Zamandlondlo Handle Your TCS Application

Our SARS compliance services include TCS PIN applications, ensuring all returns are up to date and any blocking issues are resolved before you apply. Combined with our B-BBEE affidavit service, we can get your business fully tender-ready. See our SARS filing deadlines guide to ensure all your returns are current.