Recent changes to Exchange Control legislation now allow individuals to take up to R5 million out of South Africa each year under their investment allowance.
This is broken down into a R4 million foreign Investment allowance (FIA) and a R1 million discretionary investment allowance. The R4 million foreign investment allowance requires a foreign tax clearance certificate (FTCC) issued by the South African Revenue Service (SARS) which is req uired by the South African Reserve Bank (SARB) when facilitating the payment.
Tax clearance certificates will facilitate and assist the processing of your Foreign Tax Clearance Certificate with SARS.
The following is required to apply for a Foreign Tax Clearance Certificate :
- The applicant must be a South African citizen
- The applicant must have a green bar coded South African ID
- The applicant must have an SARS income tax number which is up to date (If your tax affairs are not up to date the application will be rejected)
- The applicant must have cleared funds from a legitimate source , please see supporting documentation page with details of possible scenarios and the relevant documentation required
Documentation required when applying for a Foreign Tax Clearance Certificate:
- Certified copy of your ID
- Signed South African Revenue Service (SARS) power of attorney (download)
- Completed Foreign Investment Allowance application (FIA001) (download)
- Completed Assets and Liabilities statement (download)
- All of the above can be completed and scanned through to email@example.com
- Original Proof of funds
- Bank statement (stamped by the bank no older than 1 month)
- Lawyers letter confirming holding of funds in trust account