SARS Tax Clearance Certificate Guide 2025: How to Apply & Requirements

A SARS Tax Clearance Certificate (also called Tax Compliance Status or TCS) is one of the most important documents you'll need for business transactions, government tenders, emigration, and various legal processes in South Africa.

This comprehensive guide explains everything you need to know about tax clearance certificates in 2025: what they are, who needs them, how to apply online, requirements, processing times, validity, and troubleshooting when applications are declined.

What is a Tax Clearance Certificate?

Definition and Purpose

A Tax Clearance Certificate (TCS) is an official document issued by SARS confirming that your tax affairs are in order.

Official Name: Tax Compliance Status (TCS) Certificate

What It Confirms:

• All tax returns filed up to date

• All tax payments current (no outstanding debt)

• No compliance issues with SARS

• Tax affairs are in "good standing"

Format:

• Electronic PDF document

• Includes unique PIN number

• QR code for verification

• Valid for specific period (typically 12 months)

Not a Certificate of Good Standing:

• TCS doesn't mean you have no tax debt ever

• It means you're currently compliant

• Must be renewed periodically

Why You Need One

Common Uses:

1. Business and Tenders

• Government tender applications (mandatory)

• Municipal contracts

• Parastatal bids

• Public sector procurement

• Some private sector contracts

2. Financial Transactions

• Applying for business loans

• Company registration (for directors)

• VAT registration

• Import/export permits

• BBBEE compliance

3. Legal and Emigration

• Emigration (financial or formal)

• Selling a business

• Liquidation or deregistration

• Estate matters

• Foreign exchange approvals

4. Property and Assets

• Transfer of certain assets

• Property transactions (sometimes required)

• Vehicle licensing (commercial)

5. Professional and Licensing

• Professional body registrations

• Industry-specific licenses

• Franchise agreements

Types of Tax Clearance

Individual TCS:

• For individual taxpayers

• Personal tax compliance

• Valid: 12 months typically

Business/Entity TCS:

• For companies, trusts, partnerships

• Entity tax compliance

• Valid: 12 months typically

Customs TCS:

• For import/export activities

• Customs and excise compliance

• Valid: 1-12 months

Specific Purpose TCS:

• For specific transaction

• Single-use certificate

• Valid: For that transaction only

Requirements for Tax Clearance

For Individuals

Must Have:

1. Active SARS eFiling Account

• Registered on eFiling

• Tax reference number

• See: SARS eFiling Registration Guide

2. All Tax Returns Submitted

• Current year (if due)

• All prior years

• No outstanding returns

3. All Tax Payments Current

• No outstanding tax debt

• All PAYE, provisional tax, VAT paid

• Payment arrangements honored (if applicable)

4. No Compliance Issues

• No audit objections pending

• No disputes with SARS

• Clean compliance record

5. Registered for Relevant Tax Types

• Income Tax

• Provisional Tax (if applicable)

• VAT (if applicable)

For Companies/Entities

Additional Requirements:

1. Entity Registration

• CIPC registration current

• Correct directors/members listed

• Annual returns filed with CIPC

2. Tax Types Current

• Income Tax

• PAYE (if employees)

• VAT (if registered)

• Skills Development Levy

• UIF

• All employer obligations met

3. Tax Returns Filed

• Annual income tax (IT14)

• Monthly PAYE returns (EMP201)

• Bi-monthly VAT returns (VAT201)

• Bi-annual EMP501 reconciliation

4. All Payments Current

• No PAYE debt

• No VAT debt

• No SDL debt

• No UIF debt

• No income tax arrears

5. Directors' Compliance

• Personal tax affairs of directors in order

• Directors' personal TCS valid

Disqualifying Factors

SARS Will Decline TCS If:

❌ Outstanding Returns

• Any tax year not filed

• Even returns from years ago

❌ Outstanding Tax Debt

• Any amount owed to SARS

• Even small amounts (R1,000+)

❌ Non-Submission of Supporting Schedules

• EMP201 (PAYE) not submitted

• VAT201 not filed

• Employee tax certificates missing

❌ Payment Arrangement Default

• Have arrangement but missed payments

• Arrangement not honored

❌ Under Audit

• Active SARS audit in progress

• Pending objection or appeal

❌ Administrative Non-Compliance

• Not registered for tax types you should be

• Incorrect registration details

How to Apply for Tax Clearance Certificate

Method 1: Via SARS eFiling (Recommended)

Step-by-Step Application:

Step 1: Log Into eFiling

1. Go to: https://www.sarsefiling.co.za

2. Enter username (ID/tax number) and password

3. Complete OTP verification

4. Click "Login"

Step 2: Navigate to TCS Application

1. From dashboard, click "SARS Registered Details"

2. OR: "Work Online" > "Request Tax Compliance Status (TCS)"

3. Click "Request TCS"

Step 3: Complete Application Form

Personal/Entity Details:

• Confirm tax reference number

• Verify personal/entity details

• Confirm all information accurate

Purpose of Application:

• Select purpose from dropdown:
  • Government tender
  • Business transaction
  • Emigration
  • Good standing
  • Other (specify)

Specify Details:

• Brief description of why you need TCS

• Entity/organization requiring certificate (if applicable)

Declaration:

• Check: "I declare all information is true and correct"

• Confirm you're aware of compliance requirements

Step 4: Submit Application

1. Review all details

2. Click "Submit"

3. Application reference number generated

4. Confirmation email sent

Step 5: Await Processing

Processing Time:

• Instant: If fully compliant and automated checks pass

• 24-48 hours: If manual verification required

• 5-7 days: If issues need resolution

Status Tracking:

1. eFiling > "Work Online" > "My Requests"

2. View status:

   • Submitted
   • In Process
   • Approved (Ready to Download)
   • Declined

Step 6: Download Certificate

Once Approved:

1. eFiling > "SARS Registered Details" > "Tax Compliance Status"

2. Click "View/Print TCS"

3. Download PDF

4. Save securely (you'll need to present it)

Certificate Shows:

• Your details

• Tax reference number

• Issue date

• Expiry date (typically 12 months from issue)

• Unique PIN number

• QR code for verification

• SARS digital signature

Method 2: Via SARS MobiApp

Mobile Application:

Download App:

• Google Play Store or Apple App Store

• Search: "SARS MobiApp"

Apply for TCS:

1. Log in (same eFiling credentials)

2. Menu > "Tax Compliance Status"

3. Click "Request TCS"

4. Complete form (same fields as eFiling)

5. Submit

Advantages:

• Apply anywhere, anytime

• Receive push notification when ready

• Download directly to phone

Method 3: At SARS Branch

In-Person Application:

When to Use:

• eFiling access issues

• Urgent application needed

• Need assistance with process

Process:

1. Locate nearest SARS branch

2. Book appointment via eFiling (recommended) or walk-in

3. Bring:

   • ID or passport
   • Tax reference number
   • Proof of residence
   • Details of why you need TCS

4. Complete TCS application form

5. Submit to SARS official

6. Collect certificate (if approved immediately)

   • OR receive notification to collect later

Processing Time:

• Same day (if compliant)

• 3-7 days if verification needed

Disadvantage: Time-consuming, requires physical visit.

Processing Times and Tracking

Expected Timelines

Instant Approval:

• Fully compliant taxpayers

• No outstanding issues

• Automated system approves immediately

• Certificate available for download within minutes

24-48 Hours:

• Minor verification required

• System flagged for manual check

• SARS officer reviews and approves

• Most applications

3-5 Business Days:

• More complex verification

• Multiple tax types

• First-time application

• Recent compliance issues resolved

7-14 Business Days:

• Issues requiring resolution

• Outstanding matters being investigated

• Payment arrangements under review

Declined:

• Non-compliant taxpayers

• Outstanding returns or debt

• Notification of reasons

• Must resolve before reapplying

How to Track Application Status

Via eFiling:

1. Log in

2. "Work Online" > "My Requests"

3. Find TCS request by date

4. Status shows:

   • Submitted: Received by SARS
   • In Process: Under review
   • Approved: Ready to download
   • Declined: Not approved (reasons shown)

Email Notification:

• SARS emails when status changes

• "Your TCS request has been approved"

• "Your TCS request requires attention"

SMS Notification:

• Enable in eFiling settings

• Receive SMS when approved

SARS Contact Centre:

• Call: 0800 00 7277

• Provide: Tax reference, application date

• Ask: Current status and estimated completion

What If Your TCS is Declined?

Common Reasons for Decline

1. Outstanding Tax Returns

• Most common reason

• Even one missing return disqualifies

Example Decline Reason:
"Tax return for 2023 year of assessment outstanding"

Solution:

1. File missing returns immediately

2. Submit via eFiling: How to Submit Tax Returns

3. Wait 3-5 days for processing

4. Reapply for TCS

2. Outstanding Tax Debt

• Any amount owed to SARS

• Could be R100 or R100,000

Example Decline Reason:
"Outstanding debt of R5,432.15 on income tax account"

Solution:

1. Pay outstanding amount via eFiling or bank

2. Allow 2-3 days for payment to reflect

3. Reapply for TCS

3. Outstanding PAYE/VAT Returns

• Employers: EMP201 not submitted

• VAT vendors: VAT201 not filed

Example Decline Reason:
"EMP201 for period 202401 (January 2024) outstanding"

Solution:

1. Submit outstanding returns via eFiling

2. Pay any amounts due

3. Wait 3-5 days

4. Reapply

4. Payment Arrangement Default

• Have payment plan but missed installments

Solution:

1. Contact SARS to reinstate arrangement

2. Pay missed installments

3. Get arrangement current

4. Reapply for TCS

5. Not Registered for Required Tax Types

• Should be VAT registered but aren't

• Should be provisional taxpayer but not registered

Solution:

1. Register for missing tax type

2. File required returns

3. Wait for registration approval

4. Reapply for TCS

6. Director/Member Non-Compliance

• Company TCS declined due to director's personal tax issues

Solution:

1. Relevant director must resolve personal tax issues

2. File missing returns, pay debt

3. Director obtains personal TCS

4. Reapply for company TCS

Steps to Resolve and Reapply

Step 1: Review Decline Reason

• Check eFiling correspondence

• Note specific issue cited

Step 2: Resolve Issue

• File missing returns

• Pay outstanding debt

• Submit missing declarations

• Register for tax types

Step 3: Verify Resolution

• Check eFiling account shows compliant

• Confirm all returns show "Submitted"

• Verify debt shows R0.00

Step 4: Wait Processing Period

• Returns filed: 3-5 days to process

• Payments made: 2-3 days to reflect

• Don't reapply immediately

Step 5: Reapply for TCS

• Once confirmed compliant

• Follow same application process

• Should be approved this time

Timeline to Compliance:

• Simple issues (payment): 3-5 days

• Multiple returns to file: 1-2 weeks

• Complex matters: 2-4 weeks

Tax Clearance Certificate Validity

How Long It Lasts

Standard Validity:

• 12 months from date of issue

• Shown on certificate: "Valid until: 30 Oct 2026"

Shorter Validity:

• Sometimes issued for 6 months

• If recent compliance issues

• If payment arrangement active

Single Transaction:

• Some TCS valid for specific transaction only

• Not time-based validity

• Expires once transaction complete

Certificate Expiry

What Happens at Expiry:

• Certificate no longer valid

• Cannot be used for new transactions

• Must apply for new certificate

Renewal Process:

• No automatic renewal

• Must apply again via eFiling

• Same requirements apply

• If still compliant: Approved instantly

Advance Renewal:

• Apply 1-2 months before expiry

• Ensures no gap in validity

• Recommended for ongoing business needs

Maintaining Validity

To Keep TCS Valid:

✓ File All Returns On Time

• Annual tax returns

• Monthly PAYE (if applicable)

• Bi-monthly VAT (if applicable)

• Don't let returns lapse

✓ Pay All Taxes When Due

• PAYE by 7th of month

• VAT by end of month

• Provisional tax by deadlines

• Avoid accumulating debt

✓ Respond to SARS Correspondence

• Answer queries promptly

• Submit requested documents

• Don't ignore SARS letters

✓ Maintain Registration

• Keep registered for relevant tax types

• Update business/personal details

• Ensure eFiling access active

Benefit: If continuously compliant, renewals are instant.

Using Your Tax Clearance Certificate

What to Do With It

Present for Tender:

• Submit PDF with tender documents

• Include PIN number

• Some tenders verify online using PIN

Provide to Requesting Entity:

• Email PDF

• Or print and submit physical copy

• Ensure it's within validity period

Emigration Process:

• Submit to South African Reserve Bank

• Required for financial emigration

• Include with all emigration docs

Business Transactions:

• Attach to contracts

• Proof of tax compliance

• Builds trust with partners

Verification by Third Parties

How Others Verify Your TCS:

Method 1: SARS Online Verification

• SARS website: www.sars.gov.za

• "Verify Tax Compliance Status"

• Enter:

  • Tax reference number
  • TCS PIN number

• System confirms validity

Method 2: QR Code Scan

• Certificate includes QR code

• Scan with smartphone

• Redirects to SARS verification

• Confirms authenticity

Method 3: Contact SARS

• Third party can call SARS

• Provide tax reference and PIN

• SARS confirms valid or expired

Why Verification Matters:

• Prevents fraud

• Confirms certificate not altered

• Verifies still within validity

What If You Lose It?

Lost Certificate:

No Problem - Download Again:

1. Log into eFiling

2. SARS Registered Details > Tax Compliance Status

3. Click "View/Print TCS"

4. Download fresh copy

Same Certificate:

• Same PIN number

• Same issue and expiry dates

• Just a new download

Tip: Save multiple copies (computer, cloud, email to self).

Special Scenarios

Scenario 1: Applying for First Time

Challenge: Never applied before

Considerations:

• May take longer (manual verification)

• SARS reviews full tax history

• Expect 3-5 days

Tips:

• Ensure everything is in order before applying

• Check no missing returns from past years

• Verify no old debt forgotten

Scenario 2: Recently Resolved Non-Compliance

Challenge: Just paid off debt or filed missing returns

Timing:

• Wait 3-5 days after resolution

• Let systems update

• Don't apply immediately

Process:

1. Resolve issues (pay, file)

2. Wait for processing

3. Verify eFiling shows compliant

4. Then apply for TCS

Likely: Approved once systems reflect compliance.

Scenario 3: Payment Arrangement Active

Challenge: Have SARS payment plan for old debt

TCS Eligibility:

• Can get TCS if arrangement is current

• Must have missed no payments

• All other requirements met

Status:

• Certificate may show shorter validity (6 months)

• Must keep arrangement current

• If default: TCS becomes invalid

Scenario 4: Under Audit

Challenge: SARS auditing your returns

TCS Status:

• Usually cannot get TCS during audit

• Must wait for audit completion

• Exception: If unrelated tax years

Solution:

• Complete audit process

• Resolve any findings

• Pay any additional tax assessed

• Then apply for TCS

Scenario 5: Company with Multiple Directors

Challenge: One director non-compliant

Impact:

• Company TCS declined

• Despite company being compliant

• Directors' personal compliance affects company

Solution:

1. Identify which director is non-compliant

2. That director resolves personal tax issues

3. Director obtains personal TCS

4. Company can then obtain TCS

Tip: All directors should maintain personal compliance.

Scenario 6: Recently Emigrated

Challenge: Need TCS for emigration process

Requirements:

• Same compliance requirements

• All returns filed (including year of emigration)

• All tax paid

• Clearance for emigration granted

Process:

1. File tax return for partial year (if emigrating mid-year)

2. Pay any tax due

3. Apply for TCS

4. Use for SARB emigration application

Validity: Usually 12 months, sufficient for emigration process.

Troubleshooting Common Issues

Issue 1: Cannot Apply - eFiling Access Blocked

Problem: Cannot log into eFiling to apply

Causes:

• Forgotten password

• Account locked after multiple wrong attempts

• eFiling registration lapsed

Solution:

1. Reset password: eFiling > "Forgot Password"

2. If locked: Wait 24 hours or call SARS

3. If registration lapsed: Re-register on eFiling

4. Then apply for TCS

Issue 2: Application Stuck in "In Process" for Weeks

Problem: Status not changing, no approval or decline

Causes:

• Manual verification taking long

• SARS backlog

• Additional checks required

Solution:

1. Wait 10 business days

2. Then call SARS: 0800 00 7277

3. Request status update and reasons for delay

4. Provide: Tax reference, application date

5. Request escalation if needed

Issue 3: Declined But Can't Identify Reason

Problem: Decline notification vague

Solution:

1. Check eFiling correspondence thoroughly

2. Call SARS: Request specific reason

3. Ask: Which return/payment outstanding?

4. Get clear guidance on what to resolve

Issue 4: Approved TCS But Can't Download

Problem: Status shows approved but PDF won't download

Causes:

• Browser issue

• Pop-up blocker

• System glitch

Solution:

1. Try different browser (Chrome, Firefox)

2. Disable pop-up blocker for sarsefiling.co.za

3. Clear browser cache

4. Log out and log back in

5. Try SARS MobiApp instead

Issue 5: Third Party Says TCS is Invalid

Problem: You have TCS but entity says it's not valid

Causes:

• Expired certificate (check date)

• Incorrect PIN provided

• Verification system error

Solution:

1. Check certificate expiry date

2. Verify PIN number correct

3. Ask entity to verify again

4. If still issue: Reapply for fresh TCS

5. Provide new certificate

Issue 6: Need Urgent TCS but Application Takes Days

Problem: Deadline in 1-2 days

Solution:

1. Ensure you're fully compliant first

2. Visit SARS branch (don't rely on eFiling)

3. Explain urgency

4. If compliant: May be issued same day

5. If non-compliant: No shortcuts - resolve issues first

Reality Check: Cannot rush if non-compliant. Plan ahead.

Tax Clearance Best Practices

For Individuals

✓ Maintain Continuous Compliance

• File returns annually (even if no tax due)

• Pay all tax when due

• Respond to SARS promptly

✓ Apply Well in Advance

• Apply 2-4 weeks before you need it

• Don't wait until last minute

• Allows time for issues to be resolved

✓ Renew Before Expiry

• Apply 1-2 months before expiry

• Ensures continuous validity

• No gap in compliance status

✓ Keep Digital Copies

• Save in multiple locations

• Email to yourself

• Cloud storage

• Easier to provide when needed

For Businesses

✓ Assign Compliance Responsibility

• Designate person/team for SARS compliance

• Ensure returns filed on time

• Monitor tax obligations

✓ Directors Must Be Compliant

• All directors maintain personal compliance

• Personal TCS current

• Prevents company TCS issues

✓ Track Multiple Tax Types

• Income Tax

• PAYE

• VAT

• UIF

• SDL

• All must be current

✓ Regular TCS Renewals

• Set reminder for expiry

• Apply early

• Maintain continuous validity for tenders

✓ Payment Plans

• If debt unavoidable, arrange payment plan

• Honor all installments

• Don't default (invalidates TCS)

General Tips

✓ Use eFiling

• Faster than branch visits

• 24/7 access

• Instant approval if compliant

✓ Track Deadlines

• Tax return: October (individuals), January (provisional)

• PAYE: 7th of each month

• VAT: End of month

• Missing deadlines = no TCS

✓ Resolve Issues Immediately

• Don't let small issues become big problems

• File missing returns ASAP

• Pay small debts quickly

✓ Monitor Compliance Status

• Log into eFiling regularly

• Check for outstanding items

• Address before applying for TCS

Frequently Asked Questions

Q: How long does tax clearance take?
A: Instant if fully compliant, 24-48 hours typically, up to 5-7 days if verification needed.

Q: Can I get TCS with outstanding debt?
A: No. All tax debt must be paid or on current payment arrangement.

Q: How long is TCS valid?
A: Usually 12 months from issue date. Some issued for 6 months.

Q: Can I use the same TCS for multiple tenders?
A: Yes, as long as it's within validity period.

Q: What if I'm on a payment plan?
A: Can get TCS if arrangement is current and no missed payments.

Q: Do I need TCS for all government tenders?
A: Yes, virtually all government tenders require TCS.

Q: Can I apply if I have unfiled returns from years ago?
A: No. All returns must be filed before TCS issued.

Q: What if my director's personal tax is non-compliant?
A: Company TCS will be declined. Director must resolve personal issues first.

Q: Can I renew TCS before it expires?
A: Yes. Recommended to apply 1-2 months before expiry.

Q: What if I'm emigrating?
A: Need TCS for emigration. Same compliance requirements apply.

Q: Is there a fee for TCS?
A: No. Tax Clearance Certificates are free.

Q: Can a tax practitioner apply on my behalf?
A: Yes, if they have your eFiling authorization.

Conclusion

SARS Tax Clearance Certificates are essential for business, tenders, and various legal transactions in South Africa. While the application process is straightforward via eFiling, the key to obtaining and maintaining TCS is continuous tax compliance.

Key Takeaways:

✅ TCS confirms your tax affairs are in order

✅ Valid for 12 months typically

✅ Apply via eFiling - instant if compliant

✅ Requirements: All returns filed, all tax paid, no disputes

✅ Declined? Resolve issues and reapply in 3-5 days

✅ Maintain compliance year-round for easy renewals

What's Next:

• Ensure compliance: File Tax Returns

• Check your status: Log into eFiling

• Calculate tax: Income Tax Calculator

• Understand obligations: SARS Tax Guides

With proper tax compliance and understanding of the TCS process, you'll have no difficulty obtaining tax clearance whenever needed for business, tenders, or personal transactions.

Need Help? Call SARS: 0800 00 7277 or visit your nearest SARS branch.