DO YOUR TAX ONLINE

Getting Tax Clearance Information is not difficult!

In 2019 the South African Revenue Service (SARS) modified their systems to make the process of accessing Tax Clearance information simpler and providing information in real time instead of waiting for a manual Tax Certificate.

The issuing of the Tax Clearance certificates was stopped from the 2^nd of November 2019 and the South African Revenue Service (SARS) introduced the enhanced Tax Compliance System (TCS). This system allows you to authorise any third party, organisation or government to view your status online via eFiling, where they will be presented with your overall tax compliance status ONLY, at the date and time of viewing it. To ensure taxpayer confidentiality, no other information will be accessible.

 

When is Tax Compliance Required?

The Tax Compliance provides confirmation from SARS that the taxpayers affairs are in order at the date of issue. In many cases this is a prerequisite for the final approval of a business contract and may be required for several reasons, for example:

• Good Standing
• New Contract
• Foreign Investment
• Property Leases
• Foreign Investment
• Government Tenders

 

What do you need to do?

To be tax compliant, you should make sure of the following:

• You do not have any outstanding tax returns.
• You do not owe any money to SARS unless a payment arrangement or suspension of debt has been agreed to.
• You are registered for all the tax products that you are liable for.
• Your registered particulars are updated. For more information on how to update registered particulars click here.
• You have either merged (via the Merge tool on eFiling) or declared (on the ERC01 form available as part of the TCS process on eFiling), all your registered tax reference numbers. For more information on Merge, click here.

The TCS system revolves around the “My Compliance Profile (MCP)” functionality which affords taxpayers an online view of their current compliance against specific requirements, as determined by SARS. Where necessary, taxpayers can identify any non-compliance and take action to remedy these issues. With this information about their tax compliance and forms the basis for the overall compliance status when a TCS application is submitted to SARS.

The introduction of the MCP empowers taxpayers with more information about their tax compliance and forms the basis for the overall compliance status issued when a TCS application is submitted to SARS.

How do you access a TCS PIN via e-Filing?

• Logon to eFiling
  • If you are not yet an eFiler, register here.
  • You need to be registered for eFiling and have one tax type activated on your eFiling profile, in order to activate the TCS service

• Activate your TCS service

You only need to activate your Tax Compliance Status once and it will remain active. Once you have activated the service, you will see the “My Compliance Profile” on the screen.

If you are registered for more than one tax type and you have not yet merged the tax types into one registered profile, it is recommended that you complete the “Merge Entities” function to see a compliance profile of all taxes.

• View your “My Compliance Profile”
  • Your compliance status will be displayed against the following compliance requirements:
  • Registration status
  • Submission of returns
  • Debt
  • Relevant supporting documents.

A colour-coded profile will appear to indicate whether you are tax compliant for each compliance requirement listed above.

  – Your tax matters are in order and the taxpayer is tax compliant

– Your tax matters are not in order and the taxpayer is not tax compliant

• Request PIN on eFiling

To request a PIN go to “My Compliance Profile”:

• Select the Tax Compliance Status Request option
• Select the type of TCS for which you would like to apply. You will have the following options:
  • Good Standing
  • Foreign Investment Allowance (Individuals only)
  • Emigration (Individuals only)
• Complete the Tax Compliance Status Request and submit it to SARS.

Your PIN should be issued immediately via SMS or email if your tax affairs are in order. You can request PIN re-issue under “My Compliance Profile”. A unique PIN will be issued for each TCS request that you submit to SARS.

 

What do I do if “My Compliance Profile” is RED?

• Option 1:

Hover over the “Non-compliant” status indicator on eFiling for more details on how to fix your compliance status and action accordingly.

• Option 2:

If you disagree and would like to challenge your tax compliance status, select the “Challenge Status” option at the bottom of the “My Compliance Profile” screen.

Who would verify your tax compliance status?

There may be instances where someone (an individual or another company or government entity) needs to verify your tax compliance status for a tender application, for good standing – confirming whether your tax matters are in order with SARS, or for Foreign Investment allowance.

To verify your tax compliance status on eFiling, the person or entity will require your tax reference number and PIN number. Find out how to verify TCS PIN here.

 

DISCLAIMER

The information contained in this leaflet is intended as guidance only and is not considered to be a legal reference, nor is it a binding ruling. The information does not take the place of legislation and readers who are in doubt regarding any aspect of the information displayed in the leaflet should refer to the relevant legislation or seek a formal opinion from a suitably qualified individual. For more information you may:

• Visit the SARS website here
• Contact your registered tax practitioner
• Contact the SARS National Contact Centre