Supporting Documents for Foreign Investment allowance
When you apply for a Tax Compliance Status (TCS) in respect of foreign investment allowance for individuals, you are required to submit the following supporting documents:
- Relevant material that demonstrates the source of the capital to be invested. For more information regarding the supporting documents required in relation to the source of capital that you have specified on your application, refer to the section below detailing the requirements per source.
- Statement of assets and liabilities for the previous three tax years (this should include disclosure of all investments, loan accounts and distributions from local and foreign companies, trusts, etc.)
- Applicable Power of Attorney where the TCS application is submitted by a person other than the taxpayer.
Supporting documents regarding the source of the capital to be invested
When you apply for a Tax Compliance Status (TCS) in respect of foreign investment allowance for individuals, you are required to submit the following documents in relation to source of capital.
- Loan:
Where the parent lends money to the child to invest offshore:
- Loan agreement; and
- Bank statement of parent, not older than 3 months.
The trust lends money to the trustee or beneficiary to invest offshore:
Loan agreement;
Bank statement of trustee or beneficiary, not older than 3 months;
Latest Trust Financials;
Three months bank statements of trust, not older than 3 months; or
Trust’s latest share portfolio statement (not older than 3 months). This statement will also include the amount of shares and current market value.
The company lends money to a director of the company to invest offshore:
- Loan agreement between the company and the director;
- Bank statement of the director, not older than 3 months; and
- Company’s latest annual financial statements.
- A declaration (IT144); and
- Bank statement of donee, not older than 3 months
If the donation is not between spouses:
- A Declaration (IT144)
- Proof (Copy of the receipt) of donations tax paid; and
- Bank statement of donor and donee, not older than 3 months.