South Africa has regulations regarding how much money individuals can move out of the country annually. These are governed by exchange control regulations implemented by the South African Reserve Bank (SARB). The allowances are intended to prevent excessive outflows of capital and to manage the country's foreign exchange reserves. Here's an overview of the key allowances for individuals:
Foreign Investment Allowance
Amount: Up to ZAR 10 million per calendar year per adult. (approx. £415,000 GBP)
Requirements: Individuals must be over the age of 18 and tax compliant. Approval from the South African Revenue Service (SARS) and an authorised dealer (usually a bank) is required. In some cases, tax clearance certificates are needed.
Single Discretionary Allowance
- Amount: Up to ZAR 1 million per calendar year per individual. (approx. £41,500 GBP)
- Purpose: This allowance covers travel expenses, gifts, donations, maintenance, alimony payments, and other personal purposes.
- Requirements: The individual must be over the age of 18. No tax clearance is required, but the funds must be transferred through an authorised dealer.
Travel Allowance
- Included in the Single Discretionary Allowance: Travel allowances are part of the single discretionary allowance (ZAR 1 million). This means that individuals can use part or all of this ZAR 1 million allowance for travel expenses. (approx. £41,500 GBP)
Transfers for Minors
- Amount: Minors (under 18) can be allocated up to ZAR 200,000 per calendar year.
- Purpose: This is included within the guardian's single discretionary allowance for purposes such as travel and gifts. (approx. £8,333 GBP)
Inheritance and Gifts
- Inheritance: Funds received as inheritance can be transferred out of the country, provided all estate duty requirements are met.
- Gifts: Monetary gifts up to ZAR 1 million per annum fall under the single discretionary allowance. (approx. £8,333 GBP)
Emigration and Financial Emigration
- Emigrants: Individuals who have financially emigrated (formalised their exit from South Africa for exchange control purposes) have different rules and may transfer larger sums, including pensions and retirement annuities, subject to specific regulations.
Reporting and Compliance
- Requirements: All transactions should be reported through an authorised dealer, and individuals must comply with SARS requirements. Supporting documentation may be required to justify the source and purpose of the funds.
Special Cases and Exceptions
- Additional Allowances: There might be special circumstances where additional allowances or approvals are granted, such as for medical expenses or educational fees.
It is advisable for individuals considering significant transfers to consult with financial advisors or professionals familiar with South African exchange control regulations to ensure compliance and optimise their financial planning.
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Our team can help with any more questions on Multi-Currency accounts, Rates or our third-party UK Tax laws on any money coming into the UK.
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