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What you NEED to know about Tax Clearance Certificates

by , 20 January 2014
Vat law requires you to get a new Tax Clearance Certificate (TCC) every time you apply for a tender or contract. But, what exactly is a TCC and how do you even get it? Continue reading as we tell you everything you NEED to know about TCCs.

So why do you need a TCC?

Here's why you need a Tax Clearance Certificate

Well, without a TCC, you won't be able to attract new business or win new tenders.

Warning! You won't get away with having only one TCC, for all your tender applications, warns the Practical Vat Loose Leaf Service.

'You must get a new TCC for each and every tender or contract that your company wants to apply for,' adds the Loose Leaf Service.

If you're investing overseas, or emigrating, you'll need another TCC, as part of the Certificate of Good Standing (which SARS must give you in either case).

How do you get a Tax Clearance Certificate?

You need to apply for a TCC at your local SARS branch.

Here's how to apply for a Tax Clearance Certificate

You (or your authorised representative) must apply in person.

You'll need to provide a certified copy of your ID. And if your representative makes the application on your behalf, he'll need to provide a certified copy of his ID as well as yours, and also as written proof that you've authorised him to make the application.

Note: SARS requires 21 business days to process an application for a TCC.

Important: SARS will NOT issue a TCC if:

  • More than R2 000 in tax, penalties or interest are outstanding from your account.
  • Any of your income tax, Vat or PAYE (including Skills Development Levy and UIF) returns are outstanding past the due date or extension date.
  • Your business has failed to submit any PAYE reconciliations.

Be sure to address any shortcomings in any of these areas, BEFORE you apply for a TCC.

What if your business isn't registered for Vat?

If your business intends to apply for a tender but its annual turnover is less than R1 million (and it's not Vat registered) it should still apply for a TCC.

Now that we've told you everything you need to know about TCCs, remember to keep these three things in mind when applying for a TCC. And refer to this article if you want to get your TCC without any hassles.

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