Tax Clearance Certificate

There are three ways you can get a Tax Clearance Pin Certificate:

• The fastest way is our Tax Clearance Pin Service. You can sign up for this service today and get your Tax Clearance Pin Certificate within 24 hours.
• The second way you can get a Tax Clearance Pin Certificate is by visiting your local SARS branch or by using SARS’s eFiling.
• Your third option is using your accountant. Scroll down to see the Tax Practitioners in our team.

If you need any of the prerequisite documents (see the requirements above or below) before you can get your Tax Clearance Pin Certificate you can also make use of any of our alternative services and service combinations with discounted prices.

A Tax Clearance Pin Certificate in South Africa is a document that illustrates your Tax Compliance Status (your TCS). Your TCS simply states whether your complaint with SARS and up-to-date with all your due payments to SARS.

A Tax Clearance Pin Certificate is issued by SARS as proof that a person/business is “in the clear” with them. This means the person/business is 100% compliant with no overdue payments.

A Tax Clearance Pin Certificate is often a prerequisite for Tenders, Contracts, RFQs or Funding applications. It’s also often necessary to join public or private Service Provider Lists.

So essentially making sure you’re in good standing with SARS and having the proof to show it allows you to access many growth opportunities. Not being up-to-date or not having your Tax Clearance Pin Certificate disqualifies you from leveraging any of these opportunities.

• A CIPC-Registered Business
• A Tax Registration Number
• All your due payments to SARS should be up-to-date

If you still require any of these requirements, don’t worry. Our Specialists can help you with Company Registration, A Tax Registration Number and clearing your SARS debt. If you have any question, you can ask them on our toll-free number.

A Tax Clearance Pin Certificate is a document that proves that all your payments are up-to-date with SARS.

A Tax Clearance Pin Certificate enables you to apply for Tenders, Contracts and RFQs because it’s almost always a requirement. It also qualifies you to apply for supplier lists for large and government databases like the Central Supplier Database Application (CSD).

Whether or not you register your business, it’s almost always compulsory to pay tax. There are a few exceptions that apply to small businesses and other exceptional cases, but generally, most trading businesses or entrepreneurs in South Africa have to pay tax from the get-go.

Small businesses, who are registered at the CIPC, don’t pay taxes if they earn less than R83 100 in taxable income over the financial year of 1 April 2020 to 31 March 2021. This threshold is R79 000 for the financial of 2019/2020. You can see exactly how much your business will pay depending on your taxable earnings on SARS’s website.

If you don’t have a registered company, but you’re already offering services or selling products, you’re considered a Sole Proprietor. This means, according to South African legislation, you and your business are one united entity. You need to submit your business income as part of your personal income.

In terms of personal income, if you earn R1 – 205 900 in taxable income over the financial year of 1 March 2020 – 28 February 2021 (note this period is different to the financial period for businesses) your taxation rate is 18%. For 2019 / 2020 the earning between R1 – 195 850 means you pay 18%. That’s the minimum.

The maximum for 2020 / 2021 is R532 041 plus 45% of the taxable income over R 1 500 000. This applies to anyone earning R1 500 001 or more. You can see how much you’d pay, relative to your taxable income, here on SARS’s website.

If the above seems like Greek to you, have a look at our Accounting packages for small businesses to bring you peace of mind. 

Essentially, there’s no way to sidestep paying taxes on any income you generate, whether it’s as an individual or as a group.

There is no legal way to avoid taxes. There are more effective ways to approach your business administration to ensure that you don’t pay unnecessary taxes, but you cannot avoid taxes – nor should you try to avoid paying taxes.

You can connect with our Accounting service to advise on a more effective way to approach your business’s paperwork.