What is it?
In our continued effort to improve compliance and to make it even easier for taxpayers to manage their tax affairs, the South African Revenue Service (SARS) has introduced an enhanced Tax Compliance Status System.
Being tax compliant and ‘paying your fair share’ is not just good for you, but also contributes to the positive growth of our country’s economy which in turn benefits all South Africans.
What is it for?
The new system will make it easier for taxpayers to obtain a Tax Clearance Certificate (TCC) and will also allow taxpayers to obtain a Tax Compliance Status (TCS) PIN via the following channels:
The TCS PIN can be used instead of/ in place of a TCC by authorised third parties to verify your compliance status online via SARS eFiling. SARS has the intention of moving away from the use of the Tax Clearance Certificate (TCC) mechanism and in future the Tax Compliance Status and PIN system will be the only system in use.
It is important to remember that a taxpayer’s compliance status is not static and changes according to his/her continued compliance with tax requirements.
What do I need to do?
With this in mind, in order to be tax compliant you should make sure that:
- You do not have any outstanding tax returns
- You do not owe any money to SARS unless a payment arrangement or suspension of debt has been agreed to
- You are registered for all the tax products that you are liable for
- Your registered particulars are updated. For more information on how to update registered particulars click here.
- You have either merged (via the Merge tool on eFiling) or declared (on the ERC01 form available as part of the TCS process on eFiling), all your registered tax reference numbers. For more information on Merge, click here.
The new TCS system has at its heart the “My Compliance Profile (MCP)” functionality. The MCP affords taxpayers the opportunity to view their tax compliance status online as determined by SARS in order to remedy any non-compliance identified. The introduction of the MCP empowers taxpayers with more information about their tax compliance and underpins the replacement of the current Tax Clearance Certificate system and forms the basis for the overall compliance status issued with regards to TCS applications (for example for Tender or Good standing and others).