Tax Clearance Certificate
Tax Clearance Certificate (ITF 263) also known as the Trading Tax Clearance Certificate.
- It is a statutory requirement for all traders have a valid tax clearance and failure to provide a valid tax clearance means 10% Withholding tax has to be withheld on any contract with such a trader in terms of section 80 of the Income Tax Act.
- This withholding tax of 10% is on each contract and is largely punitive and so it is far better to have your tax affairs in order and pay your corporate taxes rather than paying withholding tax on your contracts.
- Inspire confidence in your business counterparts by showing them that you are a compliant taxpayer