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Tax clearance certificate - know how to apply for one in 3 easy steps...

by , 05 June 2013
According to the Practical Vat Loose Leaf Service, your company must get a new Tax Clearance Certificate every time you apply for a tender or contract. Without a tax clearance certificate, you won't be able to attract new business or win new tenders. This is by no means an easy process and SARS can decline your company's application if you get it wrong. Here's what you need to know to make sure SARS doesn't decline your application...

A Tax Clearance Certificate (TCC) is used by SARS to certify that SARS has, after checking its records, found that you've fulfilled all required tax returns and paid all taxes, penalties and interest due as of the date the TCC is issued.

Since Tax Clearance Certificate are only valid for a year, you must apply for one for your company every year.

But before you apply for a tax clearance certificate, here's what the Practical Vat Loose Leaf Service, says you need to know to increase the chances of your company's application being successful…

Keep these three things in mind when applying for a TCC

1. SARS must issue or decline to issue the certificate within 21 business days from date of application;

2. You must not owe anything to SARS. This includes money or returns. But, if you owe taxes or if some tax returns haven't been handed in yet, SARS can still give you a tax clearance certificate if:

  • They've deferred the payment.
  • They've compromised or written off the debts.
  • They've suspended payment because of objection or appeal.
  • They've made arrangements with you (or granted an extension) in terms of giving in your due returns.
  • You owe them less than R1000.

3. Your application form must show your company's :

  • Tax Clearance Certificate reference number.
  • Name, tax number, address, ID number or company registration number.
  • Date of application.
  • A statement that there are no outstanding tax debts.
  • Expiry date of the certificate

For your company to avoid any problems and ensure your application is successful, you need to address shortcomings in any of these areas before you apply for a TCC.

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