SARS Tax Clearance for Government Tenders: PIN, Status, and Compliance
A valid SARS tax clearance status is one of the most fundamental requirements for any South African government tender. Without it, your bid will be disqualified regardless of how strong your technical proposal is. In recent years, SARS has modernised its tax compliance verification system, moving away from paper certificates toward the Tax Compliance Status (TCS) PIN system. Understanding this system — and how to ensure your status is always current — is essential for any business pursuing government contracts.
The TCS PIN System Explained
SARS replaced the old tax clearance certificate with the Tax Compliance Status (TCS) PIN system in 2016. Instead of submitting a paper certificate with your tender, you now provide a TCS PIN that allows the government entity to verify your compliance status directly on the SARS eFiling system in real time. This means compliance is checked at the moment of evaluation, not at the moment the certificate was issued — which caught many suppliers off guard when they had an outstanding audit or dispute that arose after their certificate was issued.
Your TCS PIN is generated through SARS eFiling. You can generate multiple PINs for different purposes — one for general compliance, one for tender purposes, and one for good standing. The tender-specific PIN (called 'Tender' purpose) is the one you should submit with government bids. This PIN allows the evaluating department to see your Good Standing status across all tax types: Income Tax, PAYE, VAT, SDL, and UIF. All of these must be in compliance for your status to show as Good Standing.
- Generate a TCS PIN through SARS eFiling under 'Tax Compliance Status'
- Select 'Tender' as the purpose for bids
- Valid for 12 months from date of issue
- The PIN allows online verification — ensure all tax types are compliant
Fixing Tax Compliance Issues Before a Tender Deadline
One of the most common reasons for tender disqualification is a tax compliance issue discovered at evaluation. Common causes include outstanding PAYE returns, VAT returns not submitted, provisional tax payments in arrears, or an unresolved audit dispute. The key is to identify and resolve any compliance issues well before a tender deadline — ideally, run a compliance check at least two weeks before submission so you have time to resolve any issues.
If you have an outstanding tax debt that you are disputing, ensure the dispute is formally lodged with SARS. A lodged objection or appeal does not automatically give you Good Standing status, but SARS may grant a Payment Arrangement that can allow your status to reflect as compliant while the dispute is under review. For businesses with cash flow challenges, a SARS payment arrangement (approved installment agreement) can also restore Good Standing status while you pay off arrears.
- Check your TCS status at least two weeks before any tender submission
- Submit all outstanding returns before checking compliance
- Engage SARS through eFiling or a tax practitioner for disputes
- Payment arrangements with SARS can restore Good Standing status
Frequently Asked Questions
Can I submit a tender without a tax clearance PIN?
No. For tenders above R30,000, a valid TCS PIN or Tax Compliance Status is mandatory. Bids submitted without it will be disqualified at the compliance check stage, regardless of the technical or price merit of the bid.
My company is VAT registered but my TCS says non-compliant. What do I do?
Log into SARS eFiling and check which tax type is flagging as non-compliant. Common issues are outstanding VAT201 returns or a VAT audit that has not been finalised. Submit any outstanding returns first, then contact SARS or your tax practitioner to resolve the underlying issue. Once all returns are submitted and any outstanding debt is paid or under a formal arrangement, your status should update within 24-48 hours.