personal allowances for South Africans

Exchange Control
The South African Reserve Bank controls and oversees the movement of capital both into and out of the country: exchange control regulations. The Reserve Bank designates power to authorised dealers (banks) who oversee and regulate this function on their behalf.

Important points relating to Exchange Control Regulations

• It is applicable to all cross-border transactions no matter the size
• No South African resident may effect a foreign transfer without prior approval
• Only authorised dealers (banks) are allowed to effect currency transfers
• There are set amounts for personal transfers in the form of allowances that must be adhered to

Allowances that may be utilised for the transfer of money abroad:

• Emigration allowance
• Capital investment allowance
• Discretionary allowance

• Allowance - R4 000 000 per adult and R 8 000 000 per family unit
• Personal Goods – An additional allowance to export personal goods to the value of R1 000 000 is also available to emigrants
• Discretionary Allowances – Emigrants are also entitled to transfer capital in line with the annual discretionary travel allowances: R 1 000 000 for each adult and R 200,000 for each child (see below)
• Additional amounts – At the discretion of the Reserve Bank additional amounts over and above theses allowances may be transferred offshore

• Foreign assets held need not be deducted from the above amount
• Transfers that have been effected under Section 0 (point 6.1.1) of the Exchange Control Manual need to deducted from the above allowances
• Applicants need to have been resident in South Africa for at least five years
• The South African Revenue Services (SARS) need to confirm that appropriate arrangements have been put into place to settle any outstanding tax obligations
• The applicant is required to provide documentation to evidence the fact that they have been granted permission to take up residence in another country and they must also satisfy the authorised dealer (empowered by the Reserve Bank) that it is their intention to permanently relinquish South African domicile.

• Allowance - R4 000 000 per adult, annually
• Conditions - Funds may only be invested into offshore investment portfolios, property, bank accounts or other investments
• Applicable to - All taxpayers over the age of 18

Prior to any transfer of funds a specific tax clearance certificate issued by SARS must be presented to the authorised dealer.

Discretionary Allowance
Residents (natural persons), who are over the age of 18 years may be permitted to avail of a single allowance within an overall limit of R1 000 000 per individual in each calendar year, without the requirement to obtain a Tax Clearance Certificate.