A tax clearance certificate in South Africa is proof that your tax affairs with the South African Revenue Service (SARS) are in order. Tenders, government contracts, the Central Supplier Database (CSD), tenant and franchise applications, and many private contracts all ask for one before they will deal with you. Without it, you are often locked out of the work.
The important change is that the old printed Tax Clearance Certificate (TCC) no longer exists. SARS replaced it with the Tax Compliance Status (TCS) system. Instead of a paper certificate, you request a TCS PIN on eFiling. You give that PIN to whoever needs to check you, and they verify your status online, in real time, on the SARS system. The status they see is your live position on the day they look, not a snapshot frozen on a printed page.
This page explains what tax clearance and the TCS PIN are, why you need them, the types of TCS, the requirements to be compliant, how to request a PIN step by step on eFiling, how to download and share it, how a third party verifies it, how long it takes, and how to fix a non-compliant status. Requesting the PIN through SARS is free. If you would rather not deal with eFiling and SARS yourself, Insika can get you compliant and pull the PIN for you.
What tax clearance and the TCS PIN are
"Tax clearance" is the everyday name for confirmation that SARS regards you, or your business, as tax compliant. The mechanism behind it is the Tax Compliance Status system, usually shortened to TCS.
When you request your status on eFiling, SARS issues a TCS PIN: a unique code tied to your tax number. You hand the PIN (and your tax reference number) to the party that needs to check you. They enter it on the SARS verification portal and see one of two results: Compliant or Non-Compliant. They see nothing else, no balances, no returns, no private detail, only the overall status. That protects your confidentiality while still proving you are in good standing.
The PIN is also live. Each time it is checked, the result reflects your status at that moment. If you slip out of compliance after the PIN is issued, the next verification will show Non-Compliant, and SARS can revoke the PIN before its expiry date. So a TCS PIN is not a once-off pass, it is a window onto your ongoing compliance.
Why you need tax clearance
Tax clearance is the gatekeeper for a long list of business and personal dealings. You will most often be asked for a TCS PIN when you want to:
- Bid for tenders and government work. Almost every tender and most organs of state require a valid TCS PIN as part of the bid. No PIN, or a Non-Compliant status, usually means the bid is disqualified.
- Register on the Central Supplier Database (CSD). The CSD is the single supplier database for government. It links to SARS and checks your tax compliance, so a clean status is needed to register and stay active as a supplier.
- Apply for contracts, leases and franchises. Landlords of commercial space, franchisors and large private clients frequently ask for tax clearance before signing.
- Move funds abroad. Transferring money offshore above the single discretionary allowance, or emigrating, needs SARS approval through the international transfer route.
- Apply for funding and licences. Lenders, grant programmes and several licence applications (including some liquor and CIDB matters) ask for proof of tax compliance.
For most small and medium businesses in South Africa, tax clearance is not optional paperwork, it is the difference between qualifying for an opportunity and being turned away at the first hurdle.
Types of Tax Compliance Status
When you request a TCS on eFiling, you pick the type that matches what you need it for. The type tells SARS, and the third party, the purpose of the request.
Good Standing
The general-purpose status. It simply confirms your tax affairs are in order. This is what most businesses use for the CSD, contracts, leases, funding and day-to-day compliance proof.
Tender
A status requested specifically to bid for a tender or government contract. It does the same job as Good Standing but is flagged for tender purposes, which is what many bid documents expect to see.
Approval International Transfer (Foreign Investment Allowance and Emigration)
These two used to be separate. Since April 2023, SARS consolidated the Foreign Investment Allowance (FIA) and Emigration applications into a single status called Approval International Transfer (AIT). It applies to individuals who want to move funds offshore beyond the standard discretionary allowance, or who are ceasing South African tax residency. This route asks for far more supporting detail than a Good Standing request (verify the current requirements with SARS).
For a trading business chasing work in South Africa, Good Standing and Tender are the two you will use. The international transfer types are for individuals dealing with offshore funds or emigration.
Requirements to be tax compliant
SARS will only issue a Compliant status if your house is in order across every tax you are registered for. Before you request a PIN, make sure you meet the requirements below. If any one of them is off, the status comes back Non-Compliant.
How to get a TCS PIN step by step on eFiling
Requesting your Tax Compliance Status is done entirely on SARS eFiling and is free. Once your tax affairs are in order, the PIN is usually issued within minutes. This is the typical route from start to PIN.
- Log in to eFiling and activate Tax Compliance Status
Log in at the SARS eFiling website with your profile. The first time, activate the Tax Compliance Status function under the "Tax Status" menu so the feature is switched on for your tax number. You only do this activation once.
- Open My Compliance Profile (MCP)
Go to "Tax Status" and open your "My Compliance Profile". This dashboard shows your status for each tax type using a colour code: green means compliant, red means an item needs attention. Use it to see exactly what, if anything, is out of order before you request a PIN.
- Fix anything showing as non-compliant
If the MCP flags outstanding returns or debt, deal with them first: submit the missing returns, pay the outstanding amount, or set up a payment arrangement with SARS. The profile updates as items are cleared. There is no point requesting a PIN while the profile is red.
- Select Tax Compliance Status Request
Under "Tax Status", choose "Tax Compliance Status Request" and select the type you need: Good Standing, Tender, or Approval International Transfer. Complete the short request form and submit it to SARS.
- Set the validity period and receive your PIN
You choose how long the PIN should stay valid, up to 12 months, by entering the number of months. If your affairs are in order, SARS issues a unique TCS PIN immediately. You can have it sent by SMS or email, and it appears on your Tax Compliance Status dashboard.
- Share the PIN with the third party
Give the PIN, together with your tax reference number, to whoever needs to verify you (the tender office, CSD, client or landlord). They use it to check your status online. Keep the PIN safe and note its expiry so you can renew before it lapses.
How to download your tax clearance
There is no printed certificate to collect, but you can produce a record of your status from eFiling for your own files. People searching for a tax certificate download are really after this.
- On your Tax Compliance Status dashboard in eFiling, open the request you submitted. The issued TCS PIN is displayed there, along with the type and validity period.
- You can view and print or save a TCS confirmation letter that records the PIN and status for your records.
- What you actually hand over to a third party is the PIN and your tax number, not a downloaded file. They verify your live status with that PIN online, which is more reliable than a static document.
So "download" in the TCS world means saving the confirmation of your PIN. The proof of compliance itself lives on the SARS system and is checked in real time.
How a third party verifies your status
Verification is the whole point of the PIN. When you give someone your TCS PIN and tax reference number, they confirm your status without ever seeing your tax detail.
- The third party logs in to their own eFiling profile, or uses the SARS verification function, and enters your PIN and tax number.
- SARS returns a single result: Compliant or Non-Compliant. No figures, returns or history are revealed.
- The result is live. It reflects your status at the moment of the check, so a PIN issued while you were compliant will show Non-Compliant if your position has since slipped.
Because verification is real time, staying compliant for the whole validity period matters as much as being compliant on the day the PIN was issued.
Validity and timeline
If your tax affairs are already in order, the TCS PIN is issued almost immediately, often within minutes of submitting the request on eFiling. The slow part is never the PIN itself, it is getting compliant first.
- PIN issue: usually within minutes once your profile is fully compliant.
- Validity: you set it, up to 12 months. The status stays live throughout and can be revoked by SARS if you fall out of compliance.
- Getting compliant first: if you have outstanding returns or debt, allow time to submit returns, pay or arrange payment, and for the My Compliance Profile to update before the PIN will issue as Compliant.
Plan ahead for tenders and CSD deadlines. A clean, well-maintained tax record means a PIN on demand, while a backlog of returns or debt can hold you up for days or weeks while you put things right.
Fixing a non-compliant status
If your TCS comes back Non-Compliant, or a PIN is refused, your My Compliance Profile will show why. The usual causes, and how to clear them, are:
- Outstanding returns. One or more returns (Income Tax, VAT, PAYE) have not been submitted. Submit every outstanding return, including nil returns, to clear the flag.
- Outstanding debt. You owe SARS. Pay the amount in full, or apply for a payment arrangement or deferral so the debt is formally managed.
- Registration gaps. You are not registered for a tax type you should be, or your registered representative and details are not up to date. Correct your registrations and details on eFiling.
- Disputed assessments. If an amount is wrong, lodge a dispute or request a correction so the balance is resolved rather than left hanging.
The My Compliance Profile updates as each item is cleared. Once everything shows green, request the TCS again and the PIN should issue as Compliant. If the cause is unclear, or you need to deal with a backlog of returns, this is exactly the kind of work Insika can take off your hands.
Documents you will need
Official sources
This guide is based on the current rules published by the relevant South African authorities. Always confirm the latest fees and requirements with the office that applies to you.
