South Africa: Enhancements to tax compliance status process

A new enhanced tax compliance status (TCS) application form introduced.

A new enhanced tax compliance status (TCS) application form introduced.

The South African Revenue Service (SARS) on 21 April 2023, introduced a new enhanced tax compliance status (TCS) application form to facilitate the consolidation of the foreign investment allowance (FIA) and emigration TCS applications into a single application, referred to as “Approval International Transfer (AIT).” The system became effective on 24 April 2023. 

What to expect

  • South African residents who want to transfer funds offshore require a pin from SARS that allows third parties to view the taxpayers’ current tax compliance status online.
  • The new TCS system makes it easier for taxpayers to request their TCS via SARS eFiling or the SARS Online Query System (SOQS) to receive a PIN that can be used to authorise and enable third parties to verify their tax compliance status – in particular, when transferring funds abroad.
  • The tax compliance request form (TCR01) has been amended to align to the required changes.
  • No TCS is required for transfers up to ZAR 1 million per calendar year.
  • Non-tax residents wishing to transfer funds abroad need to complete the process of notifying SARS of their cessation of tax residence and complete the RAV01 declaration on e-filing.
  • The “Tender” option was removed, and the “Good Standing” TCS needs to be used going forward, for all other scenarios when a third party wants to verify a taxpayer’s tax compliance status.

Required documentation for new AIT application

When taxpayers apply for a TCS in respect of international transfers, they are required to submit the following supporting documentation:

  • Specific documents showing the sources of the capital to be invested
  • Statement of assets and liabilities (local and foreign) for the previous three tax years
  • If the taxpayer is a nonresident for tax purposes in South Africa, relevant proof that the taxpayer ceased to be a resident for tax purposes, including the date on which the taxpayer ceased to be a resident
  • Details of any locally listed securities that the taxpayer will be transferring to an exchange that is outside South Africa
  • Applicable power of attorney when the TCS application is submitted by a person other than the taxpayer

Read a May 2023 report [PDF 197 KB] prepared by the KPMG member firm in South Africa


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