Question:
Do I need to request a tax certificate to submit to SARS along with my tax return for my current Preservation fund in South Africa? Thank-you for assisting me with confirming in this regard. Kind Regards Carmen
Answer:
Carmen, You do not need a tax certificate from or for your preservation fund as the investment income earned within your preservation fund is not taxed. If you transferred to your preservation fund during the course of the tax year, you may have to provide a certificate to that effect, as SARS sometimes shows the transfer as a lump sum receipt on your tax return. You then have to submit the certificate as proof that you preserved rather than cashed in.