What is a tax clearance certificate?
A tax clearance certificate is proof that a business or person is up to date with SARS. Today this proof is the tax compliance status (TCS) system: you request a PIN on eFiling, and anyone you give the PIN to can see whether you are compliant.
People still say "tax clearance certificate", and eFiling can still produce a printable TCS result. But what clients and government actually rely on is the live status behind the PIN.
Why do I need a tax compliance status PIN?
You need it whenever someone must confirm your tax affairs are in order before doing business with you. Common reasons:
- Government tenders and quotations
- Registration and annual checks on the Central Supplier Database (CSD)
- Corporate supplier onboarding
- Some funding, licence and permit applications
The CSD also checks your tax status with SARS automatically. A non-compliant status can stop you being awarded government work.
How do I get a tax compliance status PIN?
You request it on SARS eFiling under Tax Compliance Status. If your status is compliant, the PIN is issued straight away.
- Log in to SARS eFiling as the company (or as yourself for a sole proprietor)
- Activate the Tax Compliance Status service if it is not yet active
- View your compliance profile and fix anything shown in red
- Request a TCS PIN for the purpose you need it (for example, tender or good standing)
- Share the PIN with the client or buyer
What makes my tax status non-compliant?
Your status shows as non-compliant when SARS finds any of these:
| Problem | How to fix it |
|---|---|
| Outstanding returns (income tax, VAT, PAYE or others) | Submit every missing return |
| Unpaid tax, penalties or interest | Pay, or apply for a payment arrangement |
| Registration details out of date | Update the company's details at SARS |
| Not registered for a tax you should be | Register for that tax and file the returns |
How long is a tax compliance status valid?
The PIN carries an expiry date, but what matters is your current status. If you fall behind on a return or payment, anyone checking the PIN will see the new non-compliant status. Keeping returns and payments up to date is the only way to stay compliant.
What are the common mistakes?
- Waiting until a tender closing date to check your status
- Forgetting dormant tax types, such as a VAT or PAYE registration with no activity, that still need nil returns
- Not updating details after a change of directors or address
- Assuming CIPC compliance means SARS compliance; they are separate
Step by step
- Log in to SARS eFiling. Use the company's eFiling profile, or your own for a sole proprietor.
- Activate Tax Compliance Status. Activate the TCS service on the profile if it is not active yet.
- Check your compliance profile. See which items are compliant and which need attention.
- Fix non-compliant items. Submit missing returns, pay or arrange outstanding debt, and update your registration details.
- Request the PIN. Request a TCS PIN for the purpose you need, such as a tender or good standing.
- Share the PIN. Give the PIN to the client, bank or government buyer so they can verify your status.