Changed tax compliance status reporting for transferring funds abroad over R1million
On 24 April 2023 SARS introduced an enhanced Tax Compliance Status (TCS) system to better deal with growing volumes of taxpayers requesting 3rd party verification requests, including Foreign Investment Allowance and Emigration.
No TCS is required for yearly transfers up to R1 million. SARS is of the view that taxpayers applying for more than the yearly R1 million single discretionary allowance, are sophisticated taxpayers who should reasonably have records of the cost price of major assets they own. This includes their local and foreign fixed properties, listed/unlisted investments, crypto assets, and cash in the bank. If the taxpayer does not own a particular type of asset, that should be captured as zero on the asset and liability part of the application form.
SARS has published a comprehensive external guide to the changes that can be accessed on the SARS external website here.
SARS has also published an updated guide as to the documentary requirements for Approval of International Transfers (AIT) applications for individual taxpayers that can be accessed through the following link here.
You can read the full media statement of SARS here
