what is a tax clearance? who should have a tax clearance?
well, today will share some information about the tax clearance certificate.
“The definition of a Tax Clearance Certificate. A Tax Clearance Certificate is essentially a piece of official documentation that your business can get from SARS as proof that you have no outstanding Tax at SARS. Having a Tax Clearance Certificate in South Africa means your business is in good standing with SARS.”
Now that you know whats a tax clearance there’s another thing you should know which is SARS no longer issue tax Clearance certificate now they issue a tax clearance Pin
SARS have has stopped the issuing of the printed Tax Clearance Certificate (TCC) and that happened from 2 November 2019.
Since they introduced the Tax Compliance Status (TCS) system back in 2015, it was stated that the printed Tax clearance certificate will be stopped shortly and 2 November 2019 came and that was it.
Now we have Tax Clearance System Pin (The TCS PIN) which enables you to authorise any third party (an organisation or government) to view your status online via eFiling. this system presents your overall tax compliance status at the date and time of viewing it. To protect taxpayer confidentiality, no other info will be accessible to a third party.
Is A Tax Clearance Necessary?
Yes, alone wouldn’t answer your question right?
well being tax compliant or paying your tax when is needed is not just a right thing to do but it makes you the taxpayer a contributor in the growth of our economy which will benefits every citizen of South Africa
The Tax Clearance system have the following applications
Foreign investment Allowance
Why do you need a tax clearance? or why do we need a tax clearance?
“The Main purpose of a Tax Clearance is to ensure that Government contracts, grants and state licences are only given to individuals and businesses that are tax compliant. It is a written confirmation from the Revenue that a person’s tax affairs are in order at the date of issue of the certificate.”
If you want to trade with the government formal as an individual or as a business you need to file your tax every 12 months, have a good compliant status put you in a good position for getting contract especially with the government of any other big corporations that you might be interested in trading with as a business
How to apply for a tax clearance pin in 2022
few things are needed for you to apply for a tax clearance certificate
Personal Income tax numbers of all company directors
The business bank account details
Proof of the company’s address.
Proof of the company’s representatives address
We will issue a tax clearance pin certificate to you in less than a week
This services will cost you roughly R450 with other consultants but with us
Our tax clearance filling will only cost you R150