As part of the SARS application process for your property transaction, it is important to ensure that all information submitted is fully compliant with SARS regulations. Below is information from SARS:
FOREIGN INDIVIDUALS
Transferor/Seller: The rule is that the tax number is mandatory if the total fair value is equal to or greater than R2 million for both Individual and Foreign Residents.
Transferee/Purchaser: If Foreign Residents already have a tax number, they must provide it. If they do not have a tax number, the drop-down menu under Reason for not registering makes provision for Foreigners. However, if the purchase price is over R2 million they have to produce an income tax number as well.
Lexis Convey will display yellow warning signs where there is info you may need to know but it does not halt the application being submitted. If a red field appears then it is a required field as per all therequirements which were received from SARS directly.
If Transferee and Transferor have an Income Tax Number is should be provided, does not matter the amount of the transfer.
SELLERS MARRIED IN COMMUNITY OF PROPERTY
When Sellers are married in community of property, SARS requires the details of both spouses to be captured, as both parties are the registered owners of the property. Providing complete and accurate information upfront helps prevent delays in the submission and approval of your application.
**MATTERS UNDER R2 MILLION
Please ignore the red exclamation icon on the SARS tab within the Transferee field and continue to send your application through to SARS via the system.**
Contributed by Allen West.
