SARS Tax Compliance 2026 — Complete Guide to TCS PINs, Audits, Objections & VDP
Tax compliance means being registered for the taxes you should be paying, having no outstanding returns or debt, and being up to date with all SARS obligations — as defined under the Tax Administration Act 28 of 2011. This guide covers how to prove your compliance (TCS PIN), what to do during a SARS audit or verification, how to dispute an incorrect assessment, and how to regularise your affairs through the VDP.
Prove I'm compliant
Need a TCS PIN for a tender, contract, or foreign investment
Tax Clearance / TCS →SARS is verifying/auditing me
SARS has contacted me; I need to know what to do
Verification & Audit →I want to dispute an assessment
SARS assessed me incorrectly; I want to object
Objections & Appeals →I want to regularise undeclared income
I have undisclosed income I want to declare voluntarily
Voluntary Disclosure →
If you have received a SARS audit notice or have significant undeclared income, consult a registered tax practitioner before taking action. Decisions made during audits, disputes, or VDP applications can have lasting consequences.
JUMP TO:
What is tax compliance?
TCS PIN / Tax Clearance
SARS Verification vs Audit
Objections
Appeals / ADR
VDP
FAQ
What does it mean to be tax compliant?
According to SARS, you are tax compliant when all of the following are true:
- You have no outstanding tax returns for any tax type you are registered for
- You have no outstanding tax debt to SARS — OR an agreed payment arrangement or suspension of payment is in place
- You are registered for all applicable taxes (income tax, VAT if required, PAYE if an employer, etc.)
Why your tax compliance status matters:
- Your ability to win government tenders and contracts
- Your ability to transfer money abroad (Foreign Investment Allowance)
- The ability of your beneficiaries to receive their share of your estate
- Whether you can obtain a foreign investment allowance or formally emigrate for tax purposes
- Your eligibility for government grants and business licences
Tax compliance is not static — it changes as your obligations change. A taxpayer who was compliant yesterday can become non-compliant today if a return deadline is missed.
Source: SARS — Manage your Tax Compliance Status
Source: SARS — Manage your Tax Compliance Status
Tax Compliance Status (TCS) — your digital tax clearance
What replaced the paper Tax Clearance Certificate:
In 2015, SARS replaced the paper Tax Clearance Certificate with the Tax Compliance Status (TCS) system. There is no paper certificate anymore. Instead, SARS issues a security PIN that you share with any third party (a bank, tender committee, or government department) who then verifies your compliance status electronically in real time.
Source: SARS — Manage your Tax Compliance Status — sars.gov.za
In 2015, SARS replaced the paper Tax Clearance Certificate with the Tax Compliance Status (TCS) system. There is no paper certificate anymore. Instead, SARS issues a security PIN that you share with any third party (a bank, tender committee, or government department) who then verifies your compliance status electronically in real time.
Source: SARS — Manage your Tax Compliance Status — sars.gov.za
TCS categories — which do you need?
| TCS type | When you need it |
|---|---|
| Good Standing | General business compliance; required for most tenders and contracts |
| Tender | Specifically for government and public sector tenders |
| Foreign Investment Allowance | When transferring money abroad (up to the permitted allowance) |
| Emigration | When formally ceasing South African tax residency and emigrating |
| Non-Resident | For non-residents managing South African tax obligations |
Source: SARS TCS functionality guide (GEN-ELEC-08-G01)
How to get your TCS PIN
To be compliant before applying:
- All tax returns must be submitted for every registered tax type
- No outstanding tax debt (or a formal payment arrangement in place)
- You must be registered for all taxes applicable to your situation
Steps to request your TCS PIN:
- Log in to SARS eFiling (sarsefiling.co.za)
- Navigate to: Home → Tax Status → Tax Compliance Status
- Activate the TCS service (once-off) and complete the Merge Entities function if you are registered for more than one tax type
- Select the applicable TCS type (Good Standing, Tender, etc.)
- Submit the request
SARS generates a PIN, which is available on your eFiling "Tax Compliance Status Request" dashboard, sent by SMS (if requested), or printable as a TCS result letter.
Alternatively, request via the SARS Online Query System (SOQS) at sars.gov.za.
Source: SARS — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-request-your-tax-compliance-status/
My Compliance Profile (MCP) — check your status before applying
Before applying for a TCS PIN, check your My Compliance Profile (MCP) on eFiling — it shows your compliance status for all registered tax types and identifies any outstanding issues you need to fix first.
Navigate to: eFiling → My Compliance Status (on the eFiling dashboard)
Source: SARS — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-access-my-compliance-profile/
Before applying for a TCS PIN, check your My Compliance Profile (MCP) on eFiling — it shows your compliance status for all registered tax types and identifies any outstanding issues you need to fix first.
Navigate to: eFiling → My Compliance Status (on the eFiling dashboard)
Source: SARS — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-access-my-compliance-profile/
How third parties verify your TCS:
You share your TCS PIN and your tax reference number with the verifying party. They log into their own eFiling or SOQS profile, activate the TCS Verification service, and enter your PIN and tax number. SARS returns your current compliance status — which is a real-time snapshot, not a static certificate.
Source: SARS — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-verify-tax-compliance-status/
You share your TCS PIN and your tax reference number with the verifying party. They log into their own eFiling or SOQS profile, activate the TCS Verification service, and enter your PIN and tax number. SARS returns your current compliance status — which is a real-time snapshot, not a static certificate.
Source: SARS — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-verify-tax-compliance-status/
TCS PIN guide — full step-by-step →
SARS verification vs SARS audit — what to expect
If SARS has selected your return for additional scrutiny, it will typically be one of two processes: a verification (a targeted check on specific information) or an audit (a formal, comprehensive examination). They are very different in scope and consequence.
| Verification | Audit | |
|---|---|---|
| What it is | A check of specific aspects of your return — e.g., confirming a deduction or income amount | A formal examination of your financial statements, accounting records, and all supporting documents |
| How it is triggered | SARS selects returns for verification based on risk criteria or data inconsistencies | SARS issues a formal audit notice; may be risk-based or sector-wide |
| What SARS requests | Specific supporting documents (usually via an online Request for Relevant Material / RFI) | Full access to accounting records, financial statements, bank statements, invoices |
| Timeline | Generally resolved within weeks to a few months | Can take months to years for complex cases |
| Outcome | SARS either confirms the return or issues an additional assessment | SARS issues an assessment based on the audit findings |
| Can you dispute? | Yes — you can object to any additional assessment raised after verification | Yes — the same objection and appeal process applies |
Source: SARS — sars.gov.za/individuals/what-if-i-do-not-agree/being-audited-or-selected-for-verification/
How to respond to a SARS Request for Relevant Material (RFI)
SARS typically sends an RFI (Request for Information) via eFiling or SMS. You must:
- Respond within the timeframe specified in the request
- Upload supporting documents via eFiling (the correct tab under your return)
- Ensure documents are in the correct format (PDF or JPEG) and within the file size limit
- Keep copies of everything you submit
Assessment finality — how long can SARS come back?
| Tax type | Assessment finality |
|---|---|
| Income tax (SARS-assessed) | 3 years from the date of assessment |
| VAT (self-assessed) | 5 years from the date of assessment |
Source: SARS — Being Audited or Selected for Verification
Exception: SARS can re-open an assessment at any time if there is evidence of fraud, misrepresentation, or non-disclosure. There is no time limit in these cases.
During a verification or audit — can you approach the VDP?
Yes. At any time during a verification or audit, taxpayers can approach the SARS Voluntary Disclosure Unit to share information voluntarily. However, once SARS has formally issued an audit notice, the VDP is no longer available for that period.
Source: SARS — Being Audited page; SARS Budget 2026 FAQ
Source: SARS — Being Audited page; SARS Budget 2026 FAQ
How to object to a SARS assessment
When to object: You may object to a SARS assessment if you believe SARS has calculated your tax incorrectly — for example, by disallowing a legitimate deduction, including income that should be exempt, or applying the wrong tax rate.
The objection form — ADR1:
The objection form is the ADR1 (Notice of Objection). Unlike most SARS processes, the ADR1 currently cannot be submitted via eFiling for most tax types — it is submitted:
The objection form is the ADR1 (Notice of Objection). Unlike most SARS processes, the ADR1 currently cannot be submitted via eFiling for most tax types — it is submitted:
- At the nearest SARS branch (appointment required), OR
- In accordance with the public notice for the relevant tax type
Exception: PAYE disputes and PAYE penalty remission requests are now on eFiling (from April 2022). Source: SARS Objections page.
30 business days
Time limit for objecting: You must object within 30 business days of the date of the assessment. Late objections may be considered if reasonable grounds exist, and SARS can extend by a further 30 business days where exceptional circumstances are demonstrated.
Source: SARS — Objections page
What must your objection include:
- The completed ADR1 form
- All supporting documents for the disputed items
- A clear explanation of why you disagree with the assessment and what the correct position is
Outcome of the objection: SARS reviews the objection and either allows it (the assessment is reduced or reversed), partially allows it, or disallows it. SARS notifies you of the outcome by email or post (for ADR1 submissions).
Suspension of debt collection during a dispute:
SARS must suspend collection of disputed debt while an objection or appeal is in progress, provided certain requirements are met. This means SARS cannot forcibly collect the disputed amount while the dispute is being resolved.
Source: SARS Budget 2026 FAQ — sars.gov.za
SARS must suspend collection of disputed debt while an objection or appeal is in progress, provided certain requirements are met. This means SARS cannot forcibly collect the disputed amount while the dispute is being resolved.
Source: SARS Budget 2026 FAQ — sars.gov.za
Alternative Dispute Resolution (ADR) and tax appeals
Alternative Dispute Resolution (ADR)
If your objection is wholly or partially disallowed and you still disagree, you can request Alternative Dispute Resolution (ADR) — a facilitated process where a SARS official who was not involved in the original assessment helps both parties reach a settlement without going to court.
How to request ADR:
The completed ADR1 form together with all supporting documents must be emailed to [email protected] within 80 business days from the date of the assessment or disallowed objection.
Source: SARS Budget 2026 FAQ — sars.gov.za
Tax Court appeal
If ADR does not resolve the dispute, you can escalate to the Tax Court. This is a formal legal process governed by the Tax Administration Act 28 of 2011. At this stage, professional legal representation is strongly recommended.
The Tax Court hears tax disputes and can confirm, vary, or set aside a SARS assessment. Appeal decisions can be further appealed to the Supreme Court of Appeal on questions of law.
The Tax Court hears tax disputes and can confirm, vary, or set aside a SARS assessment. Appeal decisions can be further appealed to the Supreme Court of Appeal on questions of law.
The Voluntary Disclosure Programme (VDP) — regularise your tax affairs
What the VDP is: The Voluntary Disclosure Programme (VDP) allows taxpayers who have undeclared income or tax defaults to approach SARS voluntarily and regularise their affairs with reduced penalties.
The VDP is permanently available — it is not a time-limited amnesty. Any individual, company, or trust can apply at any time, subject to qualifying conditions.
Legislation: Tax Administration Act 28 of 2011, Chapter 16 Part B
Source: SARS — sars.gov.za/legal-counsel/voluntary-disclosure-programme-vdp/
Legislation: Tax Administration Act 28 of 2011, Chapter 16 Part B
Source: SARS — sars.gov.za/legal-counsel/voluntary-disclosure-programme-vdp/
VDP benefits
If your VDP application is accepted, SARS provides:
- 100% relief from understatement penalties (where there was no intention to evade tax)
- Relief from qualifying administrative penalties
- Protection from criminal prosecution in relation to the disclosed default
Source: SARS Budget 2026 FAQ — sars.gov.za
Interest is NOT relieved under the VDP. Any interest that has accrued on the underpaid tax remains payable.
Source: SARS Budget 2026 FAQ
Source: SARS Budget 2026 FAQ
The "must be voluntary" rule — the critical condition
The VDP only applies if your application is genuinely voluntary. Your application is NOT considered voluntary if:
Source: SARS Budget 2026 FAQ; SARS VDP Guide — citing High Court (Case 61689/2019) and SCA (Case 135/2021) on the meaning of "voluntary"
- SARS has already issued an audit notice, inquiry notice, or criminal investigation notice in relation to the default you are disclosing
- There is any element of compulsion behind your disclosure — e.g., you are disclosing only because you know SARS is already looking at the matter
Source: SARS Budget 2026 FAQ; SARS VDP Guide — citing High Court (Case 61689/2019) and SCA (Case 135/2021) on the meaning of "voluntary"
This rule is confirmed by both South African court decisions — the High Court and the Supreme Court of Appeal have both upheld SARS's interpretation that any element of compulsion removes the voluntary nature of the disclosure.
VDP and cryptocurrency (2026)
Budget 2026 Update
SARS explicitly encouraged the use of the VDP for undeclared cryptocurrency income in the Budget 2026 FAQ. The Crypto Asset Reporting Framework (CARF) — an international information-sharing standard — is expected to significantly increase the third-party data available to SARS on crypto transactions.
Taxpayers with undeclared crypto income or capital gains should consider using the VDP before SARS initiates its own audit using CARF data.
Source: SARS Budget 2026 FAQ — sars.gov.za
SARS explicitly encouraged the use of the VDP for undeclared cryptocurrency income in the Budget 2026 FAQ. The Crypto Asset Reporting Framework (CARF) — an international information-sharing standard — is expected to significantly increase the third-party data available to SARS on crypto transactions.
Taxpayers with undeclared crypto income or capital gains should consider using the VDP before SARS initiates its own audit using CARF data.
Source: SARS Budget 2026 FAQ — sars.gov.za
How to apply for VDP
- Prepare all information about the undisclosed income or default
- Complete the VDP01 form via SARS eFiling (VDP application portal). Alternatively, visit a SARS branch where staff will capture and submit the form.
- Submit all supporting documentation
- SARS assigns the application to its VDP Unit
- The VDP Unit reviews the application and enters into a VDP agreement specifying the tax payable and penalties relieved
- On signing the agreement, the disclosed liability must be paid
Confidentiality:
The VDP01 and all supporting documents submitted through the VDP process are not shared with any other SARS division. Statistics may be drawn from the data, but no individual applicant's details are ever linked to any trend.
Source: SARS Guide to VDP — sars.gov.za
The VDP01 and all supporting documents submitted through the VDP process are not shared with any other SARS division. Statistics may be drawn from the data, but no individual applicant's details are ever linked to any trend.
Source: SARS Guide to VDP — sars.gov.za
Frequently Asked Questions
How do I get a Tax Compliance Status (TCS) PIN in South Africa?
Log in to SARS eFiling → navigate to Home → Tax Status → Tax Compliance Status → activate the TCS service (once-off) → complete the Merge Entities function if registered for more than one tax type → select the relevant TCS type (Good Standing, Tender, etc.) → submit the request → SARS generates a PIN available on your eFiling dashboard, by SMS, or as a printable result letter. You can also request via the SARS Online Query System (SOQS).
What does tax compliance mean in South Africa?
According to SARS, you are tax compliant when you have no outstanding tax returns for any registered tax type, no outstanding tax debt to SARS (unless a payment arrangement or suspension of payment is in place), and you are registered for all taxes applicable to your situation. Tax compliance is not static — it changes as your obligations change.
What is the difference between a SARS verification and a SARS audit?
A verification is a targeted check on specific information in your return — SARS asks for supporting documents to confirm a particular amount. An audit is a formal, comprehensive examination of your financial statements, accounting records, and all supporting documents. Audits are more serious and can take considerably longer. Both can result in additional assessments, which can be objected to.
How long can SARS come back and re-assess me?
For income tax (SARS-assessed), SARS's assessment generally becomes final 3 years from the date of assessment. For VAT (self-assessed), the period is 5 years. However, SARS can re-open an assessment at any time — with no time limit — if there is evidence of fraud, misrepresentation, or non-disclosure.
How do I object to a SARS assessment?
Complete the ADR1 (Notice of Objection) form and submit it at your nearest SARS branch (by appointment) or per the public notice for your tax type. Note: the ADR1 cannot currently be submitted via eFiling for most tax types. You must object within 30 business days of the assessment date. Include all supporting documents and a clear explanation of the correct position. SARS must suspend collection of the disputed debt while the objection is in progress.
What is the Voluntary Disclosure Programme (VDP)?
The VDP allows taxpayers with undeclared income or tax defaults to approach SARS voluntarily and regularise their affairs. It is permanently available under the Tax Administration Act 28 of 2011. Benefits include 100% relief from understatement penalties (where no intention to evade) and protection from criminal prosecution for the disclosed default. Interest is not relieved — it remains payable. The application must be made before SARS issues an audit or inquiry notice.
Can I still use the VDP if SARS is already auditing me?
No. The VDP is only available before SARS issues an audit notice, inquiry notice, or criminal investigation notice for the default you want to disclose. Once SARS has formally notified you of an audit, the VDP is not available for that period. Both the High Court and the Supreme Court of Appeal have confirmed that any element of compulsion removes the "voluntary" nature of the disclosure. If you are already under audit, consult a tax practitioner urgently.
What is the ADR (Alternative Dispute Resolution) process?
ADR is a facilitated process available after an objection is wholly or partially disallowed. A SARS official not involved in the original assessment assists both parties in reaching a settlement without going to court. The completed ADR1 form and supporting documents must be emailed to [email protected] within 80 business days of the disallowed objection.
Should I use the VDP for undeclared cryptocurrency income?
SARS explicitly encouraged use of the VDP for undeclared crypto income in the Budget 2026 FAQ. The Crypto Asset Reporting Framework (CARF) — an international data-sharing standard — is expected to significantly increase SARS's access to crypto transaction data from third parties. If you have undeclared crypto income or capital gains, applying for VDP before SARS initiates its own enquiries is strongly recommended. Apply via the VDP01 on eFiling.
Related guides
Sources and references
- Tax Administration Act 28 of 2011 — primary legislation (Chapter 16 Part B for VDP; objection and appeal provisions)
- SARS — Manage your Tax Compliance Status — sars.gov.za/individuals/manage-your-tax-compliance-status/ (updated July 2025)
- SARS — How to Request your Tax Compliance Status — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-request-your-tax-compliance-status/ (January 2026)
- SARS — How to Verify Tax Compliance Status — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-verify-tax-compliance-status/
- SARS — How to Access My Compliance Profile — sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-access-my-compliance-profile/
- SARS — Guide to TCS Functionality on eFiling (GEN-ELEC-08-G01) — sars.gov.za
- SARS — Being Audited or Selected for Verification — sars.gov.za/individuals/what-if-i-do-not-agree/being-audited-or-selected-for-verification/
- SARS — Objections — sars.gov.za/individuals/what-if-i-do-not-agree/objections/
- SARS — Voluntary Disclosure Programme — sars.gov.za/legal-counsel/voluntary-disclosure-programme-vdp/ (February 2026)
- SARS — Guide to the Voluntary Disclosure Programme — sars.gov.za (citing High Court Case 61689/2019 and SCA Case 135/2021 on "voluntary")
- SARS Budget 2026 FAQ — sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/ (VDP benefits; ADR; debt suspension; crypto)
Last reviewed June 2026 by Solly Maanaso, CA(SA). Next review: after Budget Speech February 2027 — verify any TAA amendments and VDP relief provisions.
This content is for informational purposes only and does not constitute professional tax advice. Consult a registered tax practitioner for advice specific to your situation.