Good standing with SARS: what your Tax Compliance Status means for your business
General information only. This article explains the law and SARS practice as they stood on the date shown above. It is not advice for your circumstances, and rates, thresholds and deadlines can change every year. Please speak to us before you act on it: info@booysengroup.co.za · +27 (0)12 740 7703.
In our last article, Why should small businesses use a tax practitioner?, we said SARS has rules a business must follow to stay in good standing. This article explains what “good standing” actually means, how SARS measures it, and how to keep it.
In short, SARS records your standing as a Tax Compliance Status, shown in green or red. It is live and changes as your tax affairs change. Government buyers, new clients and other third parties can check it with a PIN you give them. SARS itself lists tenders, new contracts and proof of good standing among the reasons small businesses need one.
What is a Tax Compliance Status?
SARS introduced the Tax Compliance Status (TCS) system in 2015. It replaced the old paper tax clearance certificate. Many people still say “tax clearance certificate”, but today it is a PIN, not a document.
It works in three steps:
- You request your status on SARS eFiling, and SARS issues a unique PIN.
- You give the PIN and your tax reference number to whoever needs proof, such as a bank, a buyer or a funder.
- They verify it on eFiling, and they see your status at the date and time they check it.
That last point matters. A PIN you obtained in March shows the third party your status on the day they check, not your status in March. SARS: How to verify Tax Compliance Status
There are two types of request:
- Good Standing confirms that your tax affairs are in order. It is the only type available to companies and other organisations.
- Approval International Transfer (AIT) is for individuals moving funds abroad.
The old “Tender” option no longer exists. SARS says to use Good Standing instead, because it serves the same purpose. SARS: Manage your Tax Compliance Status
What turns your status green or red
The test is set out in section 256(3) of the Tax Administration Act 28 of 2011. In plain terms, SARS may only show you as compliant if you meet all three of these conditions:
| Requirement | What the law says | Where small businesses usually slip |
|---|---|---|
| Registered | You are registered for every tax a tax Act requires you to register for | Turnover passes the VAT threshold, or the first employee is paid before the business registers as an employer |
| No outstanding returns | No return is outstanding, unless an arrangement has been made with SARS to submit it | A missed VAT201 or EMP201, or an annual return such as the ITR14 or EMP501 |
| No outstanding tax debt | No unpaid tax debt, with specific exceptions (below) | Assessments or penalties left unpaid while a query is “being sorted out” |
The debt test excludes these:
- debt covered by an instalment payment agreement or a compromise with SARS;
- debt whose payment SARS has suspended pending an objection or appeal; and
- very small balances below the minimum set in the Act or by SARS public notice.
SARS also expects your registered details to be up to date, and every tax reference number you hold to be merged under one profile. SARS: Manage your Tax Compliance Status
An update since our last article. The compulsory VAT registration threshold rose from R1 million to R2.3 million from 01/04/2026. SARS: VAT registration threshold A business that must register and has not done so fails the first condition above.
Why your status matters more than you think
- Government tenders. The government’s Central Supplier Database verifies suppliers’ tax status electronically with SARS. For a tender, you need a Good Standing PIN.
- New contracts. SARS lists new contracts among the reasons a small business needs its status. The other party can verify it themselves, at the moment they check.
- It moves. Green when you requested the PIN does not mean green when the buyer checks it three weeks later.
- Red status usually costs money as well. For an outstanding return, SARS can levy an administrative penalty of R250 to R16 000 for each month the return stays outstanding, depending on taxable income. It can run for up to 35 months. This applies to individuals and companies, and from 04/05/2026 to trusts with outstanding ITR12T returns for 2024 onwards. SARS: Administrative penalty
How to check and fix your status
- Log in to eFiling and activate the TCS service. This is a once-off step. If you hold several tax numbers, merge them first.
- Open My Compliance Profile. It shows your overall status and three areas: registration, submission of returns and debt. Each one is green or red. A newly registered business may show “Compliant (New Taxpayer)”.
- Fix whatever is red. Register for the missing tax type, file the outstanding return, and either pay the debt or agree an instalment arrangement with SARS.
- Disagree with the status? Use Challenge Status. It opens a case for SARS to review. If SARS agrees, it may apply a temporary override to your profile.
- Request a Good Standing PIN. You choose how many months the PIN stays valid, then share it with your tax reference number.
Source for steps 1 to 5: SARS external guide GEN-ELEC-08-G01, Guide to the Tax Compliance Status functionality on eFiling (revision 24, effective 28/08/2026)
Where a registered tax practitioner fits in
This is where the previous article and this one meet. A registered tax practitioner can request your status on your behalf. The eFiling request asks for the practitioner’s registration number, and SARS requires a power of attorney when someone other than you applies.
The real value is in watching the profile before you need it. A red status discovered the week a tender closes is a crisis. Found a month earlier, it is usually a filing or a payment arrangement.
Your practitioner must be compliant too. Under section 240(3)(d) of the Tax Administration Act, SARS may deregister a practitioner who has been non-compliant for an aggregate of at least six months in the previous 12 months and does not fix it after a SARS notice. SARS Interpretation Note 132 It is a fair question to ask whoever handles your tax.
At Booysen Accountants™, we are SARS registered tax practitioners. We can check your compliance profile, tell you plainly what is red and why, and put it right with you. Book a consultation and we will start with where you stand today.
Frequently asked questions
Yes, in practice. The Tax Compliance Status system replaced the paper tax clearance certificate in 2015. Proof now takes the form of a PIN, which the other party verifies on SARS eFiling.
You choose the number of months when you request it. Whatever the expiry, the person checking always sees your current status, not your status on the day the PIN was issued.
Yes, if they are a registered tax practitioner with the right eFiling access and a power of attorney from you.
Debt covered by an instalment payment agreement under the Tax Administration Act does not count against the debt test in section 256(3). You must still meet the registration and returns tests.
No. SARS removed the Tender option. Use a Good Standing request for tenders.
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