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SARS enhances TCC application process

07 March 2014   (1 Comments)
Posted by: Author: Lorys Charalambous
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Author: Lorys Charalambous (Tax-News)

The South African Revenue Service (SARS) has introduced an enhanced Tax Clearance Certificate (TCC) application process on eFiling and at SARS offices, as part of a series of initiatives to modernize tax compliance that are to be rolled out during the first quarter of 2014. 

A TCC validates the compliance status of a taxpayer. It is issued free of charge for one year, and may be required when a business applies for a government tender or bid, to receive a foreign investment allowance, or when emigrating.

A certificate will only be issued by SARS where the taxpayer has no outstanding debt for all taxes, including administrative penalties and employees' tax, is adhering to any deferred arrangements, has up-to-date tax returns and declarations, and has active and correct tax reference numbers.

A taxpayer can now simply apply online for a TCC using SARS's improved online system, and collect the certificate at the branch. When making its application, the legal entity's income tax reference number needs to be furnished, and, depending on their status, also the entity's value-added tax and employees' tax reference numbers.

SARS will also add all sub-entities belonging to a holding company and provide a consolidated compliance answer. However, the tax compliance of sub-entities, divisions, or branches of a corporate will have an impact on the holding company's tax compliance status, meaning that if any one of the holding company's sub-entities is non-compliant the holding company will also be regarded as non-compliant, and a TCC will not be issued.

SARS confirmed that it has made the changes in the TCC process as part of its efforts to guard against fraud and the misuse of the TCC.

This article first appeared on


Timothy J. Powell says...
Posted 13 March 2014
TC for Foreign Investment and Emigration still requires the applicant or authorised individual to go into a SARS branch for application. My understanding is that only TC for good standing and tenders can be done online. Please clarify if this is not the case. thanks


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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