How to Get a Tax Clearance Certificate in South Africa

A SARS tax clearance certificate — now called a Tax Compliance Status (TCS) — is a critical document for any business in South Africa. Without it, you cannot tender for government contracts, complete B-BBEE verification, or sell your business. This guide explains how to get one and how to stay compliant.

What Is a Tax Clearance Certificate?

A Tax Compliance Status (TCS) certificate, commonly called a tax clearance certificate, is an official document issued by SARS confirming that your tax affairs are in order. It certifies that you have:

• Submitted all required tax returns (income tax, VAT, PAYE, etc.)
• Paid all taxes due (or have a valid payment arrangement)
• No outstanding tax debts or disputes that affect compliance

When Do You Need a Tax Clearance Certificate?

• Government and municipal tenders — All public sector contracts require a valid TCS
• B-BBEE verification — Verification agencies require tax compliance as a prerequisite
• Selling your business — Buyers require proof of tax compliance before transfer
• Business licences — Some industry licences require tax clearance
• Financing and loans — Banks and development finance institutions may require a TCS
• Cross-border transactions — Required for certain international business activities

How to Check Your Tax Compliance Status

Step 1: Log in to SARS eFiling

Go to www.sarsefiling.co.za and log in. If you do not have an eFiling profile, register first.

Step 2: Open My Compliance Profile (MCP)

On your dashboard, click on "My Compliance Profile" (MCP). This screen shows your compliance status for each tax type individually:

• Income Tax (IT)
• Value-Added Tax (VAT) — if registered
• Pay-As-You-Earn (PAYE) — if registered as an employer
• Provisional Tax
• Customs and Excise — if applicable

Step 3: Check Your Status

Each tax type will display one of:

• Compliant — All returns submitted and tax paid. You can download your certificate.
• Not Compliant — Outstanding returns or unpaid taxes. Resolve the issue before applying.
• Pending — SARS is reviewing your status. Contact SARS to follow up.

How to Apply for a Tax Clearance Certificate

Online via eFiling (Recommended)

• Log in to SARS eFiling
• Navigate to "My Compliance Profile"
• Click "Request Tax Compliance Status"
• Select the reason for the request (tender, B-BBEE, etc.)
• Choose the period for which compliance is verified
• Submit — if compliant, the certificate is generated immediately as a PDF
• Download and save the certificate

At a SARS Branch

You can also visit a SARS branch in person. This is useful if:

• You have complex tax affairs that need human review
• Your eFiling profile has verification issues
• You are dealing with an audit or dispute

Book an appointment via the SARS website. Bring your ID, company registration documents, and any relevant correspondence.

Processing Time

Reasons Your Tax Clearance May Be Denied

• Outstanding tax returns — Any unfiled return blocks your compliance status
• Unpaid tax — Outstanding tax debt, even small amounts, results in non-compliance
• Late payments — SARS may flag your account if you have a pattern of late payments
• Under-declaration — If SARS identified discrepancies in your returns
• Audit in progress — An active audit may freeze your compliance status
• Invalid postal or registered address — SARS cannot correspond with you

Tax Clearance Certificate vs. Tax Compliance Status

In 2018, SARS replaced the paper-based tax clearance certificate with the digital Tax Compliance Status (TCS) system. The key differences:

• Old system: Paper certificate valid for 12 months. Had to request a new one each time.
• New TCS system: Real-time compliance status. You can view and download it at any time. It is immediately invalidated if your tax status changes.

The new system is better because it gives procurement officers real-time verification. However, it also means one missed return or payment instantly invalidates your compliance status — even if you have the PDF certificate.

How to Maintain Tax Compliance

• File all returns on time — set calendar reminders for every tax type
• Pay all taxes by the due date — do not wait for SARS reminders
• Check your My Compliance Profile on eFiling monthly
• Respond to SARS queries immediately — delayed responses can trigger audits
• Keep your registered address up to date with both CIPC and SARS
• If you cannot pay, arrange a payment plan with SARS before the due date