Tax Clearance Certificate

What you need to know

Tax Clearance is one of the most important SARS service as it gives the ‘all clear’ that your company tax affairs are up to date or ‘Compliant’. 

ALL tax returns for the company AND ALL of its Directors are required to be up to date before we can proceed with the application. 

Without an appointed Public Officer, no registrations can be done with SARS from Tax Clearance to VAT and PAYE registrations.

Good to know

You will need to appoint a Public Officer for your company if you have not already done so - we are unable to proceed without it.

Price :  R490
How long does it take?   1-7 Days

Call Centre
021 595 4433

060 070 2089

Frequently Asked Questions

Tax Registration is the registration number of a company (or individual) as a tax payer.  Tax Clearance is a company tax compliance status – a company is either compliant or not.
A Tax Clearance certificate was a certificate issued annually to ensure that the tax payer is up to date with their tax payments.  It has been replaced with Tax Compliance status which is either compliant or not.
Tax compliance is the tax status of a company or individual which complies with the tax laws and regulations and accurately pays its tax on time.
Many institutions require tax compliance before they will consider doing business with your company.  It is the most basic of all tender requirements and your company will be disqualified from consideration if its tax status is not compliant.  This is to ensure that the company is legitimate and its taxes are up to date.
The Public Officer for a company is the person who is responsible for all matters relating to SARS and the company’s representative for SARS.  In May 2021, SARS introduced tighter measures for companies interacting with SARS and will no longer process any SARS services for companies with no Public Officer appointed.
SARS is the South Africa Revenue Service commonly known as the taxman, is our tax collection authority.  It is a government agency which is responsible for administrating the country’s  tax collection and administration. 
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Why Tax Clearance

Tax clearance in South Africa is a critical aspect of the country`s tax system, ensuring compliance with tax laws and regulations. It serves as a certificate issued by the South African Revenue Service (SARS) indicating that a taxpayer`s tax affairs are in order. This document is often required in various financial transactions, such as applying for tenders, emigration, obtaining loans, and even securing certain employment positions. To obtain tax clearance in South Africa, taxpayers must fulfill certain requirements and adhere to specific procedures set forth by SARS. These requirements may vary depending on the type of clearance sought and the taxpayer`s circumstances. Generally, individuals and businesses alike must ensure they have filed all necessary tax returns, paid any outstanding taxes, and resolved any outstanding tax-related matters before applying for tax clearance.

Why is tax clearance important in South Africa?

One of the primary purposes of tax clearance is to prevent tax evasion and ensure that taxpayers fulfill their obligations to the state. By issuing tax clearance certificates, SARS confirms that the taxpayer is up to date with their tax obligations, providing assurance to third parties involved in various transactions. For instance, when a company bids for a government tender, it must demonstrate its tax compliance by presenting a valid tax clearance certificate.

What does SARS do, when you apply for Tax Clearance

Once you apply we will submit your application to SARS. SARS then reviews the application and conducts an assessment to verify the taxpayer`s compliance status.SARS may conduct various checks during the assessment process, including reviewing your tax returns, verifying payment records, and conducting audits if necessary. This thorough review ensures that only taxpayers who have met their obligations receive tax clearance certificates.

Delays in Tax Clearance

In some cases, taxpayers may encounter challenges or delays in obtaining tax clearance, especially if there are discrepancies or outstanding issues in their tax records. For example, if a taxpayer has failed to submit certain tax returns or pay outstanding taxes, SARS may withhold or refuse to issue a tax clearance certificate until the matter is resolved. Additionally, tax clearance requirements may differ for specific transactions or industries. For instance, certain industries, such as mining or construction, may have additional compliance requirements or regulations that taxpayers must meet to obtain tax clearance. Despite the stringent requirements, tax clearance serves as an essential tool for promoting transparency, accountability, and trust in South Africa`s tax system. It encourages taxpayers to fulfill their tax obligations promptly and accurately, thereby contributing to the country`s revenue collection efforts and overall economic development.

Tax Clearance and Investment in South Africa

Furthermore, tax clearance plays a vital role in facilitating business transactions and investment in South Africa. Investors and creditors often require assurance that the companies they deal with are tax-compliant, and a valid tax clearance certificate provides this assurance. As such, tax clearance not only benefits individual taxpayers but also supports the growth and stability of the country`s economy. Ultimately, SARS is trying to force compliance with tax laws and regulations. By verifying taxpayers` compliance status and issuing clearance certificates, SARS promotes transparency, accountability, and trust in the tax system, facilitating business transactions and contributing to the country`s economic development.
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