To do any kind of business or apply for a tender in South Africa, you will need a tax clearance certificate. This certificate is proof that you are a taxpayer and that all your tax affairs are in order.
In this article, we will guide you through the process of requesting a tax clearance certificate in South Africa.
What is a Tax Clearance Certificate?
A tax clearance certificate is a document issued by the South African Revenue Service (SARS) that confirms an individual or entity is compliant with all their tax affairs.
It is a crucial document that is required when applying for tenders, contracts, or doing business with government entities.
Why Do You Need a Tax Clearance Certificate?
You need a tax clearance certificate as proof that you are a registered taxpayer and that your tax affairs are in order.
It is a requirement for anyone who wants to do business with the South African government, and many private companies also require it.
Who Can Request a Tax Clearance Certificate?
Anyone who is a registered taxpayer can request a tax clearance certificate. This includes individuals, companies, close corporations, and trusts.
How to Request a Tax Clearance Certificate
Getting a tax clearance certificate in South Africa is a straightforward process that involves four simple steps.
Step 1: Register for eFiling
To apply for a tax clearance certificate, you need to register for eFiling. This is an online portal provided by SARS that allows taxpayers to submit their tax returns and manage their tax affairs online.
Step 2: Complete Your Tax Returns
Before applying for a tax clearance certificate, you need to ensure that all your tax returns are up to date. This includes submitting your income tax returns, VAT returns, and PAYE returns if you are an employer.
Step 3: Apply for a Tax Clearance Certificate
Once your tax returns are up to date, you can apply for a tax clearance certificate. You can do this by logging into your eFiling account and clicking on the “Tax Clearance Certificate” tab. Follow the prompts to complete the application process.
Step 4: Await Approval
After submitting your application, SARS will review your tax affairs and either approve or decline your application. If your application is approved, you will receive your tax clearance certificate via your eFiling account.
How Long Does it Take to Get a Tax Clearance Certificate?
The time it takes to get a tax clearance certificate can vary depending on the complexity of your tax affairs. In general, it can take between one to four weeks to get your certificate.
How Much Does a Tax Clearance Certificate Cost?
A tax clearance certificate is free of charge.
How Long is a Tax Clearance Certificate Valid For?
A tax clearance certificate is valid for a period of one year from the date of issue. After this period, you will need to apply for a new certificate.
What if You Lose Your Tax Clearance Certificate?
If you lose your tax clearance certificate, you can request a copy from SARS. You will need to provide your taxpayer identification number and other relevant information to obtain a replacement certificate.
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