SARS - TAX CLEARANCE CERTIFICATES WILL NO LONGER BE USED!

What is the Tax Compliance Status system?

Tax Compliance Status (TCS) replaced the Tax Clearance Certificate system which was previously used by SARS.

SARS has changed the Tax Certificate system for all South African Taxpayers.

The issuing of the printed Tax Clearance Certificates (TCC) will no longer be used, effectively from 25 October 2019. SARS will be using a more secure and fully electronic Tax Compliance Status (TCS) system.

The goal of the TCS system was placed in motion in 2015, and that was to end of the use of printed TCCs, and to stop issuing TCCs at any future date.

The TCS (Tax Compliance Status) PIN, will now be used by taxpayers to share your tax compliance status electronically with any third parties. In addition, the ability to obtain or print a TCC and all active Tax Clearance Certificates will end and all Tax Compliance Certificates that are currently printed will cease to be valid.

Starting from the 25th of October 2019 the tax clearance certificates that businesses and individuals currently have will automatically expire and that means they will have to request a new certificate due to this new system being implemented. The PINS will be valid for 12 months.

Each time a third party is viewing the tax clearance the taxpayer will receive a notification. Businesses and individuals will therefore no longer be able to verify or print the TCC.

The new system SARS has put in place is a secure and convenient electronic way to authorize any third party (an organization or government department) to view your tax compliance status online via the eFiling platform by providing them with just a PIN.

This will enable the third party to access your overall tax compliance status as at the date and time they view it, instead of your tax compliance status as it was at the date when it was issued to you, this will allow for a more accurate tax compliance status at all times to third parties. 

It is important to remember that the tax compliance status of any business or individual is not static but changes according to your continued compliance with the tax obligations.

The details of each verification performed will be saved on your eFiling profile under “Verification History”. You may also print the verification result.

This may sound complicated and a lot to take in, but we as tax practitioners are here to assist in all your needs in this regard. We will ensure that the process is stress and pain free in all ways possible.

Please remember that effectively from 25 October 2019 this will be fully implemented and all previous TCC in circulation will be no longer valid.

Please contact us if you have any more questions or concerns regarding this new TCS system change.