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Understanding Tax Clearances in South Africa

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Not everyone understands the objective of tax clearances and the process involved. Tax clearances are provided in the form of a tax clearance certificate, which is an official SARS (South African Revenue Services) document that confirms the applicant’s tax affairs are settled and in order. In South Africa, a tax clearance certificate will be required in the following instances:

  • The applicant is applying for a tender.
  • The applicant wants to be involved in foreign investment.
  • The applicant wants to emigrate.

Tax clearances provided for tender applications are only valid for one year from the date of issue.


How to Get Tax Clearance

What many people do not know is that there are a variety of reasons why tax clearance applications may be denied. Some of the reasons that your tax clearance application could be rejected may include the following:

  • You owe SARS more than R1000 and have made no arrangements with them to settle the amount.
  • Your tax status may be reflecting as “inactive” or “no longer registered”.
  • You are not registered for an income tax reference number.
  • Postponed payment arrangements for UIF, PAYE, VAT, SDL, or income tax have not been adhered to.

How Long It Takes to Receive Tax Clearance

SARS usually approves or declines tax clearances within 21 business days of the application. In most instances where a “good standing” tax clearance is required, SARS will require the applicant to provide their reasons for requiring such a certificate. For tender applications, the applicant must provide the tender number, the duration of the tender, and the estimated amount of the tender.


Tax Leaders Specialises in Tax Clearances

At Tax Leaders, we assist our clients with acquiring tax clearances specifically for tenders and “good standing”. We will discuss your needs and requirements with you and ensure that you understand the process and what to expect during the course of the proceedings. We are a dynamic team that does not just provide accounting and taxation services; we partner with our clients to form lasting relationships and to simplify a great number of their accounting and taxation tasks and challenges.


Chat with Tax Leaders About Your Tax Clearance Needs

We welcome you to contact us so that we can advise you on the type of tax clearance you need and provide you with a competitive quotation. For more information and advice, simply contact us via email or telephone today.