Steps to take if your SARS tax compliance status shows as “non compliant”

Seeing red on your eFiling tax return status dashboard? Don’t panic! Spotting a “non-compliant” status notification when seeking your SARS tax clearance certificate simply indicates that there is an issue with your tax affairs, but it can be resolved. Here’s what you can do:

SARS non compliant tax status: 

1. You must understand the reason for non-compliance:

Why does my tax status say non compliant?

• eFiling: Login to your SARS eFiling account and access your “My Compliance Profile”. Select the “Non-compliant” status to see the specific reason(s) for your non-compliance.
• Support Channels: Alternatively, contact SARS through their various support channels like their website, their contact centre, or visiting a branch in person. They can help you to identify the issue.

2. You must address the non-compliance:

How do I clear non-compliant tax status?

• Follow the instructions: Once you understand the reason, follow the provided instructions on eFiling or as directed by SARS support to rectify the issue of non-compliance. This may involve:
  – Submitting any outstanding tax returns.
  – Making outstanding payments (unless a payment arrangement exists).
  – Registering for any necessary tax products you’re liable for.
  – Updating your registered particulars with SARS.
  – Merging or declaring your registered tax reference numbers (if applicable).
• Existing channels: You can also address the non-compliance through existing processes available on eFiling or by contacting SARS directly.

3. You can challenge the non-compliant tax status (if necessary):

• If you disagree with the “non-compliant” status, you can challenge it on eFiling by clicking “Challenge Status” and providing a detailed explanation for your disagreement.
• You can also submit supporting documentation to strengthen your case through the case work page or the “Submit Supporting Documents” service on eFiling.

How to request your Tax Compliance Status

Access your tax compliance profile by choosing the “My Compliance Profile” from the menu. A color-coded profile will display, signaling whether your tax matters are in order. Red indicates non-compliance, while green signifies compliance with tax regulations, meaning you are good to go.

Is Tax Compliance Status the same as Tax Clearance Certificate?

While closely related, Tax Compliance Status (TCS) is not the same as a Tax Clearance Certificate (TCC). The Tax Compliance Status (TCS) replaced the Tax Clearance Certificate system previously used by SARS. Here’s the key difference you need to be aware of:

• The Tax Clearance Certificate (TCC): was issued by SARS until 2015. The TCC was a physical document verifying an individual or entity’s tax compliance at the date of issue. It provided limited/static information and could not be verified by third parties in real-time.
• Tax Compliance Status (TCS): introduced in 2015 to replace the TCC system. It is an online system that reflects an individual or entity’s current tax compliance status. It provides real-time verification for third parties using a Tax Compliance Status PIN (TCS PIN) issued by SARS. This allows for a more dynamic and transparent system.

Remember, resolving your non-compliance issue is essential to regaining a compliant tax status and obtaining your tax clearance in order to:

1. Show good standing with the tax authority
2. Complete your tax emigration from South Africa
3. Make an approved international money transfer from South Africa

Read more: Planning to emigrate from South Africa? Here’s what you need to know about tax.

What is the RAV01 form for SARS eFiling?

The RAV01 form used in SARS eFiling is the Registration, Amendments and Verification (RAV01) form. It allows individuals, tax practitioners, and registered representatives to view, maintain and update their legal entity/individual registration (demographic and specific tax type) details.

In the context of tax emigration, the process is kicked off by filling out the RAV01 to inform SARS that you have left the country. This starts a SARS inquiry into your tax resident status and requires you to submit supporting documentation to verify your status.

Read more: Everything you need to know about using the RAV01 form on SARS eFiling.

FinGlobal: tax compliance specialists for South Africans

Dealing with SARS can be stressful and frustrating. That’s why you’ll be pleased to know that FinGlobal can handle it all for you, every step of the way. Whether you’re dealing with expat tax compliance, seeking a tax refund, or you need tax clearance for your tax emigration, or to make an Approved International Transfer, our team of cross-border tax specialists is ready to assist.

Let us know how we can be of service! Leave your contact details in the form below, and we’ll be in touch to discuss your specific tax-related requirements.