Tax clearance certificate system launched

The South African Revenue Service (SARS) has launched an online system where individuals and companies can get their tax clearance certificates. The Tax Compliance Status System is part of SARS’ “continued effort to improve compliance and to make it even easier for taxpayers to manage their tax affairs.”

The new system allows taxpayers and companies to obtain a Tax Clearance Certificate (TCC) via SARS eFiling or visiting a SARS branch. The new system allows taxpayers to obtain a Tax Compliance Status (TCS) PIN, which is then used via eFiling or at the SARS branch.

“The TCS PIN can be used instead of/ in place of a TCC by authorised third parties to verify your compliance status online via SARS eFiling. SARS has the intention of moving away from the use of the Tax Clearance Certificate (TCC) mechanism and in future the Tax Compliance Status and PIN system will be the only system in use,” explained SARS.

SARS highlighted that a taxpayer’s compliance status can change as it is dependent on their continued compliance with tax requirements.

Being tax compliant

In order to be tax compliant, you need to ensure that you do not have any outstanding tax returns. In addition, you must not owe SARS any money, unless a payment arrangement or suspension of debt has been arranged between yourself and SARS, explained the tax agency. You are also required to be registered for all tax products that you are liable for, and ensure that all your information with SARS is up to date.

“The new TCS system has at its heart the “My Compliance Profile (MCP)” functionality. The MCP affords taxpayers the opportunity to view their tax compliance status online as determined by SARS in order to remedy any non-compliance identified. The introduction of the MCP empowers taxpayers with more information about their tax compliance and underpins the replacement of the current Tax Clearance Certificate system and forms the basis for the overall compliance status issued with regards to TCS applications (for example for Tender or Good standing and others),” revealed SARS.

For more information on the tax compliance system or help from SARS, you can contact SARS on 0800 00 7277.