Issue Date: 
Monday, April 11, 2016

New Tax Clearance Measures

It is well known fact that if you want to respond to tenders in South Africa, either for Public or Private Sector tenders, you have to submit an original - and valid - Tax Clearance Certificate together with your tender response.

Currently it is very time consuming to obtain a Tax Clearance Certificate. The reason for this is because you need to visit a SARS branch in order to obtain original and valid copies of your company's Tax Clearance Certificate. For those who have visited a SARS branch anywhere in South Africa will know that it can be a challenge to get in and out quickly. More often than not you will end up waiting in queues for a very long time!

Fortunately SARS has noticed this short coming and has introduced a new system. The system is called the full enhanced Tax Compliance Status (TCS) system and it will be introduced from 18 April 2016.

This system will enable you to:

  • Request your Tax Compliance Status online via eFiling. This will include a unique PIN which you can provide to a third party who is able to verify your tax compliance status either via eFiling or at a SARS branch;
  • Print a Tax Clearance Certificate (TCC) via eFiling if your tax compliance status request is processed and you are tax compliant;
  • Request your Tax compliance status via a SARS branch and receive a PIN or if required request a printed TCC where the SARS agent will be able to print or email the TCS PIN or TCC to you.

However, from now until 18 April, you still need to follow the existing Tax Clearance Certificate process. But the good news is that you will no longer be required to wait hours on end at a SARS office to receive original copies of your Tax Clearance Certificate. The true success this system remains to be seen. But for now it is a step in the right direction.

How it will affect the tender process and tender response forms is not clear, however, the Standard Bidding Documents of Government will still need to be adjusted to accommodate the new requirements. Watch this space for updates on future developments.

For more information, see the Guide to the Tax Compliance Status functionality on eFiling.
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Tenders, B-BBEE and the new Preferential Procurement Regulations 2017

We have previously asked: How important is a good B-BBEE status level of contributor in the tender process?

The answer is still the same: VERY IMPORTANT!

In all tender documents, you will find the NEW Standard Bidding Document 6.2 which is used to claim your Preference Points for B-BBEE. The higher your B-BBEE status level of contributor, the more points you will score on the Preference Points System. Ultimately the bidder or bidders scoring the highest points will be awarded the tender.

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