It was announced by SARS on 4 November 2019 that the printing of Tax Clearance Certificates will be terminated on eFiling’s Tax Compliance Status (TCS) system. You will therefore not be able to request for a Tax Clearance Certificate on eFiling and to print it out. Instead this has been replaced with a printed PIN Letter.
Essentially once you now apply for a new Tax Clearance Certificate, SARS will continue to issue a PIN which can be supplied to the third party and be used by them to check your tax status on a daily basis. This issued PIN will now appear on a new PIN Letter that can be printed and forwarded to the relevant third party accordingly.
This new process will allow third parties to better their compliance checks, as the PIN will give the third party an immediate update the moment that the taxpayer’s tax affairs are non-compliant, and not as in the past where a Certificate is issued and active for a 12-month period even though the taxpayer might have only been compliant on the day of application.
This will therefore force taxpayers to step up their compliance with all their taxes should they wish to keep their contracts and tenders.
The tax compliance status will be affected should any of the following occur:
· Outstanding tax returns;
· Outstanding tax debt (excluding debt under debt arrangement or suspension); and
· Registered personal information not updated with SARS (compared to what SARS receives from Banks etc.).
Below is an example of the new PIN Letter to be issued: