National Treasury has banned consultancy Bain & Co. from tendering for public sector contracts for a period of 10 years.
"The effective date of restriction is 5 September 2022 until 4 September 2032 for engaging in corrupt and fraudulent practices related to a SARS [SA Revenue Service] contract," Treasury said in a statement on Thursday.
"This restriction has been published on the National Treasury website and database for restricted suppliers. The restriction will apply to any other contract for services awarded to Bain & Co in the public sector."
Treasury said it was, in collaboration with SARS, "in the process of restricting Bain & Co, South African Directors through a phased approach."
The decision to ban the company comes seven weeks after the UK government banned it from competing for state contracts for three years.
While National Treasury's acting director-general, Ismail Momoniat, previously called on companies in the private sector to not do business with Bain, Thursday's announcement is the first time that Bain has been banned from public work in South Africa.
While Bain has acknowledged making "serious mistakes" in its work for SARS, it has consistently denied that its representatives "knowingly" participated in state capture or an effort to "damage SARS".
It has also launched a legal challenge against its ban from state contacts in the UK.