Tax Clearance Certificate:
A Tax Clearance Certificate is a written confirmation from SARS indicating that a person or company’s tax affairs are in order at the date on which the certificate is issued.
When can you apply for a Tax Clearance Certificate?:
- You or your business have an active tax number;
- Your entity name needs to be the same name registered with SARS;
- You can apply for one when all you taxed to date have been paid, and as such, all your affairs are in order with SARS.
How long is a Tax Clearance Certificate valid for?:
The certificate is valid for a period of 12 months from the date that it is issued.
Common reasons for which Tax Clearance Certificates are needed:
- Government Tenders;
- The letting of property;
- Often become a prerequisite for the final approval required for certain business contracts;
- Often required In order to be a listed supplier or service provider for large corporations/government institutions.