When you apply for a Tax Compliance Status (TCS) in respect of foreign investment allowance for individuals, you are required to submit the following supporting documents:
- Relevant material that demonstrates the source of the capital to be invested. For more information regarding the supporting documents required in relation to the source of capital that you have specified on your application, refer to the section below detailing the requirements per source.
- Statement of assets and liabilities for the previous three tax years (this should include disclosure of all investments, loan accounts and distributions from local and foreign companies, trusts, etc.)
- Applicable Power of Attorney where the TCS application is submitted by a person other than the taxpayer.
- Relevant proof that the taxpayer has ceased to be a resident for tax purposes in South Africa, including the date on which the Taxpayer ceased to be a resident is required to be submitted.
- Detailed Capital Gains Tax Calculation schedule relating to any tax payable on deemed disposal of assets on the day before the taxpayer ceased to be a tax resident, in accordance to Section 9(H)(2) of the Income Tax Act.
- If, the non- resident application is for a family unit and one or more members of the family unit are registered for tax purposes, they must apply separately to be issued with a TCS Pin.
Note: In respect of the withdrawal of retirement funds (lump sum benefits from pension preservation, provident preservation and retirement annuity funds) when South African Residents ceased to be resident for tax purposes in South Africa, payment of lump sum benefits to such individuals shall only be allowed if the individual member has remained non-tax for at least three consecutive years.
In addition to the general supporting documentation listed above, there are a number of specific documents that demonstrate source(s) of the Total Value of International Transfer that must be submitted. Should you require professional advice regarding the above, do not hesitate to contact us.