We decided to compile a list of frequently asked questions about a tax clearance certificate. This is a very important subject, and crucial to keep your tax affairs compliant.
1. What is the meaning of a tax clearance certificate?
It is a written confirmation from SARS that an entities tax affairs are up to date at a certain time.
2. Who would need a tax clearance certificate from me?
- Potential clients
- Most tender applications require a tax clearance certificate
- Application for finance
- Foreign investment allowances
- Emigration applications
3. How long is the tax clearance certificate valid?
The certificate used to be valid for 12 months. With the new tax compliance status system, your tax affairs need to be kept up to date always.
4. Did the tax clearance application changed recently?
The tax clearance certificate (TCC) application changed in 2016 to a real-time system called the tax compliant status (TCS). Through this system, you will receive a PIN as well as tax clearance certificate, that can be provided to the relevant 3rd party.
5. How long will a tax clearance application take?
With the new tax, compliant status system, a successful tax clearance application will generate a certificate in real time. It is important to keep your tax affairs up to date always.
6. What is the minimum requirement for a tax clearance certificate?
Your entity need at least be registered for income tax.
If you are unsure of your current tax affairs, feel free to contact us to assist you.
We are currently members of the Institute of Accounting & Commerce
(The principle director JN Basson are registered with practice number AO652993) & South African Institute of Tax Practitioners
Please complete the enquiry form below and one of our tax consultants will contact you for assistance.