Tax clearance certificates for money transfers 

Tax clearance certificates in respect of foreign investments must be obtained from SARS (South African Revenue Service) for all money transfer and foreign exchange transactions out of South Africa that exceed the ZAR one million discretionary allowance.

A tax clearance certificate in respect of foreign investments from SARS is a confirmation that you have submitted all your tax returns and no tax is currently outstanding. It is valid for a one year period.

Please however be aware that when your tax clearance certificate is issued it comes with a Pin - this Pin is used at the actual time you wish to do your transfer. So although you have received a tax clearance certificate, your good standing with SARS will still be confirmed via the Pin at the time of your money transfer. Should you become non compliant during the year, your transfer will not be able to go ahead. 

Whilst the allowances have been increased substantially over time and a new annual foreign investment allowance has been introduced, foreign exchange control regulations remain in place.

These foreign exchange control regulations dictate that a person must get a tax clearance certificate as part of their application for permission to transfer money out of South Africa.

As part of the service offered by Incompass our in house accountant will be able to assist and in most cases obtain, free of charge, the tax clearance certificate on behalf of our foreign exchange clients who conduct their money transfers using our services.

Incompass Forex specialises in assisting South Africans to transfer money out of South Africa. We offer superior service, expert knowledge and the best foreign exchange rates – all just a phone call away.

If you are looking to transfer money out of South Africa and require a tax clearance certificate get in touch with Incompass Forex today.