SARS tax compliance

Tax clearance for tenders: the TCS PIN that replaced the certificate

If a tender asks for a tax clearance certificate, what it needs is a SARS Tax Compliance Status PIN. SARS replaced the printed certificate with the TCS system, and the difference is not cosmetic: instead of handing over a document that was true on the day it was printed, you hand over a PIN that lets the organ of state look up your status live, on the day they check it.

Facts checked against source on . Fees and thresholds are set by the relevant authority and change — confirm current figures before you budget.

Why the certificate went away

A printed tax clearance certificate had an obvious weakness: it proved compliance on its issue date and nothing after. A supplier could be issued one, fall behind, and still be holding a valid-looking certificate months later. SARS closed that gap by moving to a status that is queried rather than presented.

What you obtain now is a PIN tied to your tax reference number. You give the PIN to the buyer, and the buyer uses it to view your compliance status directly with SARS at the moment they need it. The document you send is only a pointer; the answer comes from SARS.

The practical consequence catches people out. Because the status is live, becoming non-compliant after you submit a bid shows up when the buyer checks — a bid submitted while compliant can still fail on tax at evaluation. The PIN is not a snapshot you have banked.

What SARS is actually checking

Compliance turns on three things. You must be registered for the taxes that apply to you. All required returns must be submitted and up to date — including nil returns for periods with no activity. And you must have no outstanding tax debt, unless it is covered by a payment arrangement or has been formally suspended or deferred.

The submitted-returns requirement is the one that most often surprises a small contractor. A dormant year, a period between contracts, or a company kept on the shelf still requires returns. In SARS’s view an unfiled nil return and an unpaid assessment are both non-compliance, and both stop a tender.

A payment arrangement is worth knowing about, because it changes the answer. Outstanding debt under an agreed arrangement that you are honouring does not necessarily make you non-compliant, which means a genuine cash-flow problem does not automatically end your ability to tender if it is dealt with properly and early.

Getting the PIN

The request is made through SARS eFiling, under the Tax Compliance Status service, which has to be activated on the profile once before it can be used. You request a PIN for the purpose that fits — for bidding on government work that is the good-standing type, which is distinct from the type used for approval of international transfers or emigration.

If your affairs are in order the PIN is issued immediately, which is why the honest advice is to try it before you need it. The request takes minutes; correcting three years of unfiled returns does not, and a tender’s closing date will not move to accommodate it.

A PIN runs for a year, but the status behind it is live throughout. Holding a PIN issued eight months ago is fine. Holding a PIN while non-compliant is not, because the buyer sees the current answer rather than the one that applied when it was issued.

Where it fits with the other tender requirements

Tax compliance also feeds your Central Supplier Database record, which carries a tax status that SARS updates. That means a tax problem is visible in two places at once and fixing it at SARS resolves both. It also means a supplier who believes their CSD record is broken quite often has a tax problem rather than a database problem.

For a construction tender, tax compliance sits alongside CIDB registration and B-BBEE evidence, each with its own lead time. The reason to keep all of them current continuously, rather than assembling them per tender, is simply arithmetic: tenders are advertised for weeks, not months, and only one of these can be fixed in an afternoon.

Where Industrial Hub fits

Industrial Hub does not file returns or request PINs — that is between you and SARS on eFiling. It records whether your tax compliance is current as part of your compliance profile, and surfaces it in the Bid Readiness check on each tender, so the gap is visible while there is still time to fix it rather than at submission.

Common questions

Do I still need a tax clearance certificate for tenders?
Not in its old printed form. SARS replaced the tax clearance certificate with the Tax Compliance Status system, so what a tender needs is a TCS PIN. When tender documents still use the phrase "tax clearance certificate", the PIN is what satisfies the requirement.
How do I get a TCS PIN?
Request it through SARS eFiling under the Tax Compliance Status service, which has to be activated on your profile first. Choose the good-standing purpose for tendering. If your registrations, returns and payments are in order the PIN is issued immediately.
How long is a TCS PIN valid?
The PIN itself runs for a year, but it does not freeze your status. Whoever you give it to sees your compliance position as it stands when they check, so falling behind after the PIN was issued shows up straight away and can cost you a bid you had already submitted.
Why is my tax compliance status non-compliant when I do not owe SARS anything?
Unsubmitted returns are non-compliance in their own right, separate from money owed. A period with no activity still needs a nil return, so a dormant year or a gap between contracts is a common cause of a non-compliant status on a business with no tax debt at all.
Can I tender if I owe SARS money?
Possibly. Outstanding debt covered by a payment arrangement you are honouring, or that has been formally suspended or deferred, is treated differently from debt that is simply unpaid. The route back to compliance is to reach an arrangement with SARS, and to do it well before a closing date rather than after.
Does my tax status affect my CSD registration?
Yes. The Central Supplier Database carries a tax compliance status that SARS updates, so a tax problem shows on your supplier record as well. Fixing it with SARS resolves both — there is nothing separate to correct on the database itself.

Check a tender against your compliance profile before you bid

Store your CIDB grade, CSD registration, tax status and B-BBEE standing once. Every matching government tender is then checked against them, so the ones you cannot bid are flagged before you open the document pack.

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