A Tax Clearance Certificate (TCC) is an official document issued by the Botswana Unified Revenue Service (BURS) confirming that an individual or business has met all tax obligations. The requirement for a TCC was established under Cabinet Directive No. 32/2003, mandating that all bidders for government tenders must provide a valid TCC.
Since July 1, 2005, the TCC has been a mandatory requirement for individuals and businesses bidding for tenders from the Public Procurement and Asset Disposal Board (PPADB), government ministries, and local authorities.
Who Needs a Tax Clearance Certificate?
A TCC is required for:
- Companies, individuals, or partnerships bidding for government tenders.
- Foreign entities bidding for public tenders in Botswana (they must apply for an exemption certificate for tender purposes and later register with BURS if awarded the tender).
- Businesses or individuals needing to prove their tax compliance status.
How to Apply for a Tax Clearance Certificate
To obtain a TCC, applicants must complete and submit a Tax Clearance Application Form to the nearest BURS office. The process involves the following steps:
- Complete the Application Form: Ensure all sections (A to E) are filled to avoid delays.
- Confirm Tax Compliance: Make sure all tax returns are submitted and all outstanding tax liabilities, penalties, and interest are paid.
- Submit the Application: Applications should be submitted at least four (4) working days before the certificate is needed.
Important Notes:
- Foreign bidders must apply for an exemption certificate before participating in public tenders.
- A TCC is valid for 12 months from the date of issue.
- Renewal applications should be submitted two weeks before expiry.
Taxes Covered Under the TCC
BURS administers various taxes that must be up to date before a TCC is issued. These include:
- Income Tax
- Withholding Tax
- Value Added Tax (VAT)
- Customs & Excise Duties
Non-compliance with any of these tax obligations may result in delays or rejection of a TCC application.
Why is a TCC Important?
A TCC is essential for businesses and individuals who:
- Want to participate in government tenders.
- Need to demonstrate financial and tax compliance.
- Are applying for business loans or other financial services requiring tax compliance verification.
Download the BURS Tax Clearance Application Form
For easy access to the application form, click here.