SARS Tax Clearance for Tenders: TCC PIN, Valid Status & Common Problems

It's 4 PM on submission day. You've completed your entire tender response—60 pages of technical proposals, pricing schedules, company profiles. Everything is perfect.

Then you check your SARS eFiling portal.

Status: Not Tax Compliant.

Your tender is dead. Hours of work, wasted. And SARS won't fix your status in the next 3 hours.

This isn't a hypothetical. It happens to South African businesses every week. Here's how to make sure it never happens to you.

What is a Tax Clearance Certificate (TCC)?

A Tax Clearance Certificate is official confirmation from SARS that your business is tax compliant. It's required for:

• All government tenders (national, provincial, and municipal)
• State contracts and service agreements
• Some private sector procurement processes
• Certain business licenses and permits

The old system vs. the new system

Old system (pre-2020): You applied for a physical Tax Clearance Certificate valid for 12 months.

New system (current): SARS issues a TCC PIN—a unique code that procurement officers verify in real-time on the SARS website. There's no "certificate" to print anymore (though you can generate a verification letter).

Important: Many tender documents still ask for a "Tax Clearance Certificate." What they mean is your TCC PIN and/or a verification screenshot showing "Tax Compliant Status." Don't panic—just include your PIN and verification proof.

How to get your TCC PIN

Step 1: Log into SARS eFiling

1. Go to www.sarsefiling.co.za
2. Log in with your registered credentials
3. If you don't have eFiling access, register first (takes 24-48 hours)

Step 2: Request your TCC PIN

1. Navigate to: Home → Tax Compliance Status → Tax Compliance Status Request
2. Select the reason: "Tender" (or "Good Standing" for general purposes)
3. Enter the tender/contract reference if required
4. Submit the request

Step 3: Get your PIN

If you're compliant, SARS issues your TCC PIN immediately (within seconds). You'll receive:

• A unique alphanumeric PIN (e.g., "123456789012")
• Status confirmation showing "Tax Compliant"
• Option to generate a verification letter (PDF)

Step 4: Verify your PIN (what procurement officers do)

Procurement officers verify your PIN at: www.sars.gov.za/verify

They enter your TCC PIN and your company registration number. SARS returns:

• Status: Tax Compliant / Not Tax Compliant
• Date verified: Real-time timestamp
• Company name: To confirm it matches your tender submission

Understanding tax compliance status

"Tax Compliant" (what you need)

This status means:

• All tax returns are submitted (VAT, PAYE, Income Tax, etc.)
• No outstanding assessments or debts
• OR any debts are under approved payment arrangements
• No disputes blocking your status

"Not Tax Compliant" (tender disqualification)

This status means one or more of:

• Outstanding tax returns not submitted
• Unpaid tax assessments
• Payment arrangement in arrears
• Unresolved disputes or queries
• Administrative penalties outstanding

Critical: The verification happens in REAL-TIME at tender evaluation. Even if you were compliant when you submitted, if your status changes before evaluation, you're disqualified.

Common tax clearance problems (and how to fix them)

Problem 1: Outstanding returns

Symptoms: Status shows "Not Compliant" even though you've paid all taxes.

Cause: You haven't submitted all required returns. Common culprits:

• EMP201 (monthly PAYE returns)—even if R0
• VAT201 (bi-monthly VAT returns)
• IT14 (annual income tax returns)
• EMP501 (bi-annual reconciliations)

Fix: Submit all outstanding returns immediately. If nil, submit nil returns. Status updates within 24-48 hours after SARS processes the returns.

Problem 2: Outstanding assessment

Symptoms: SARS shows you owe money you didn't know about.

Cause: SARS issued an assessment (often from an audit) that you haven't addressed.

Fix options:

1. Pay in full (status clears within 24-48 hours)
2. Apply for a payment arrangement (status may clear once approved)
3. Lodge an objection if you dispute the assessment (but this takes time)

Problem 3: Payment arrangement in arrears

Symptoms: You have a payment arrangement but status is still "Not Compliant."

Cause: You missed a payment or are behind on the arrangement schedule.

Fix: Catch up on missed payments immediately. Once your arrangement is current, status updates within 48 hours.

Problem 4: Admin penalties

Symptoms: Small amounts blocking compliance (often R250-R2,500).

Cause: Late submission penalties accumulated over time.

Fix: Pay them. It's often cheaper to pay the penalty than to lose a R500,000 tender.

Tax clearance best practices for serious tenderers

1. Check your status BEFORE you start preparing a tender

The moment you decide to bid on a tender, verify your tax status. This gives you maximum time to fix any issues.

2. Submit all returns on time, every time

Set calendar reminders:

• EMP201: 7th of each month
• VAT201: 25th of the month after VAT period ends
• EMP501: 31 October (interim) and 31 May (annual)
• IT14: Within 12 months of financial year-end

3. Keep a cushion in your SARS account

Many businesses keep a small credit balance with SARS (R5,000-R10,000). If an unexpected assessment hits, the credit absorbs it without affecting compliance status.

4. Use a tax practitioner who understands tender deadlines

Tell your accountant you bid on government tenders. They need to understand that late submissions = lost revenue.

5. Generate a verification letter for each tender

Even though the PIN is real-time verified, including a dated verification letter in your submission shows diligence.

What to include in your tender submission

Most tenders require:

1. Your TCC PIN: Written on the relevant SBD form (usually SBD 2 or SBD 4)
2. Verification screenshot/letter: Dated close to submission date, showing "Tax Compliant"
3. Company details: Ensure the name matches exactly (company registration name, not trading name)

For consortiums/joint ventures:

Each member must provide their own tax clearance. One non-compliant member = entire JV disqualified.

The bottom line

Tax clearance is non-negotiable in government tenders. The procurement officer doesn't care why you're not compliant—they simply move to the next bidder.

The businesses that win government contracts aren't necessarily better at tax—they're better at staying perpetually ready. They check their status weekly. They submit returns early. They fix problems immediately.

Make tax compliance a habit, not an emergency.

Your action items today:

1. Log into eFiling and check your current tax compliance status
2. Submit any outstanding returns—even if they're nil returns
3. Request your TCC PIN and save the verification letter
4. Set calendar reminders for all upcoming tax deadlines