With the recent increase in the annual foreign investment allowance it’s now possible for a married couple, whose tax affairs are in order, to transfer R22M out of South Africa each calendar year.  The foreign investment allowance has increased from R4M to R10M and the discretionary allowance remains at R1M, but there are now no sub-categories; the funds can be used for “any legal purpose”. There is no restriction over the movement of money between spouses.

For 99% of us this means that exchange control as we used to know it has effectively gone!

There is still a process to be followed, at the heart of which is tax; for transfers via the R1M discretionary allowance a simple declaration that your tax affairs are in order and up to date suffices, however transfers for larger amounts, via the foreign investment allowance, require actual proof of a compliant tax record with SARS, in the form of a tax clearance certificate. Basically, once you’ve evidenced the fact that you don’t owe the country anything, you’re free to transfer.

But take note, a breach of the regulations is deemed a criminal offence and can result in stiff financial penalties, so it’s always important to do things right.

When it comes to moving money out of South Africa let us call you for a solution that is complete, competitive and compliant.

 

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