A tax clearance certificate (in respect of foreign investment) is only required if you wish to utilise your Foreign Investment Allowance, ie if you want to send more than R1 million per calendar year. Obtaining a tax clearance certificate is a straightforward process which you can do yourself through SARS eFiling, or your accountant may wish to obtain it on your behalf. It is important to ensure that the certificate you obtain is “in respect of foreign investment” as the information required for this certificate is slightly different.
Alternatively, if you would like us to assist you with obtaining your tax clearance certificate, please contact us for more information.
A tax clearance certificate is issued by SARS confirming that the applicant’s tax affairs are in order. A tax clearance certificate (in respect of foreign investment) is required if you wish to take advantage of the R10m foreign investment allowance. It is not required if you only wish to transfer funds under the R1m single discretionary allowance.