In the days gone by you needed to physically present yourself to the South African Revenue Service (SARS) office in order to secure a Tax Clearance Certificate. And your application would take forever to be processed and approved. That urgent gig you were gunning for might even come to pass before getting your Tax Clearance Certificate.
That struggle is over. SARS has upped its online service offering which allow you to apply and secure your Tax Clearance Certificate from the comfort of your home and via the eFiling application. All you need is a computer and internet access. And Offcourse your tax affairs must be in order.
So what is it and how does it work?
SARS has introduced a new Tax Compliance Status (TCS) system which has replaced the old Tax Clearance Certificate (TCC) system.
The TCS system is available for the following applications:
- Good standing
- Foreign Investment Allowance
How does it work?
To apply for your TCS, says SARS, you will need to activate the “Tax Compliance Status” service, confirm your tax reference number(s) and view your ‘My Compliance Profile’ (MCP).
The MCP gives you a view of the current status of your tax affairs. This makes it easier for you to view any non-compliance and rectify it.
To get started:
- Logon to eFiling.
- Navigate towards Tax Status item on the main menu.
- Clicking Tax Status will yield a side bar. Click on Tax Compliance Status
- Follow on to My Tax Compliance Profile which will tell you if you’ve got issues or not.
Sort out your outstanding issues if any and proceed towards applying for your tax clearance certificate.
If you have no issues look for Tax Compliance Status Report
- Clicking on Tax Compliance Status Request will lead you to a screen with your business details. Focus on the second half of the page, on a box titled Tax Compliance Status.
- Look for Status of Existing Request
- And follow on to Good Standing or Tender whichever is applicable to you
You must now be looking at a bar with six categories. Look for Compliance Indicator.
If your tax clearance application was approved, you should see a green indicator stating compliance under Compliance Indicator.
- Navigate to a ‘Select’ button next to Compliance Indicator.
- Select and then click on Print TCC.
With luck of no browser issues, you will be printing your Tax Clearance Certificate.