Why Your Business Needs a Tax Clearance Certificate—Even If You’re Not Tendering
- Bryden Nair
- Jul 10
- 2 min read
In South Africa, the words “tax clearance certificate” are often associated with government tenders. But in today’s compliance-focused environment, every business—big or small—should have an active Tax Compliance Status (TCS) with SARS, even if you’re not bidding on contracts.
Here’s why having a valid tax clearance is no longer optional.
✅ What is a Tax Clearance Certificate (TCC)?
A Tax Clearance Certificate is an official document (now digitally managed through the TCS system) that confirms your tax affairs are in order. SARS replaced physical TCCs with an online Tax Compliance Status PIN, which allows third parties—like banks or business partners—to verify your compliance instantly.
🔎 Why Is It Important?
1. Opening Business Accounts
Most banks now require a valid TCS PIN before approving business accounts, especially for high-turnover or trust-linked accounts. If your tax returns are outstanding or you owe SARS, your application might be rejected.
2. Funding, Loans & Investors
Private funders, angel investors, and lenders are placing greater emphasis on compliant business structures. Many will request proof of compliance before releasing funds or signing shareholder agreements.
3. Supplier & Client Vetting
Large companies are under pressure to only do business with compliant vendors. If you want to appear on a supplier database or land a major client, they may request your TCS as part of due diligence.
4. B-BBEE Verification
Tax compliance is a mandatory requirement for B-BBEE verification. Even if you score highly on other elements, non-compliance will invalidate your B-BBEE certificate.
5. Regulatory Licensing
Businesses that require industry-specific licences—like FSPs, NPOs, construction companies, or even liquor traders—must show proof of tax compliance for licensing and renewals.
⚠️ What Happens If You’re Non-Compliant?
If your company has:
Outstanding tax returns (e.g., VAT, PAYE, CIT, EMP501),
Unpaid tax debts (unless under arrangement),
Incorrect banking details or outdated public officer records,
…SARS will mark your status as “non-compliant”, which:
Blocks access to funding and tenders
Flags you on third-party systems
May result in penalties, garnishee orders, or frozen accounts
🛠️ How Can Horizon Trading Solutions Help?
At Horizon Trading Solutions, we help businesses:
Diagnose and fix tax compliance issues
Submit missing returns and correct errors
Register for VAT, PAYE, UIF, and other tax types
Apply for a TCS PIN and keep it valid
Whether you're a small business, a start-up, or a seasoned enterprise, we’ll ensure you’re ready to grow—with no red flags from SARS.
📞 Ready to Get Compliant?
Let’s help you unlock your business potential with a valid TCS.
📱 068 051 4134
Horizon Trading Solutions — Your Partner in Tax, Compliance & Growth
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