For South Africans abroad who want to move their funds offshore, things can get a bit tricky. You are bound by certain rules and regulations and need to be sure how much you can transfer, but it’s just as important to know when to do what. As an individual you have two principal allowances in each calendar year:
Foreign investment allowance (FIA)
- Amount: R10 million
- Who can use it: available to South African residents and non-residents
- Transfer requirements: tax clearance certificate and green bar-coded ID document
Single discretionary allowance (SDA)
- Amount: R1 million
- Who can use it: available to South African residents each year and overseas residents in the year they leave SA
- Transfer requirements: green bar-coded ID document
There is also a secondary option under the SDA:
Single discretionary allowance – special application (SDA-SA)
- Amount: R1 million
- Who can use it: South Africans abroad, even if they’ve left prior to 1 January this year.
- Transfer requirements: Green bar coded ID document plus a special application to the Reserve Bank (approval within 7 working days).
Because of the administration involved in making a transfer it’s very important to note our deadlines if you want to move money this year.
- 15 November 2015 – Foreign Investment Allowance
- 30 November 2015 – Single Discretionary Allowance (special application)
- 7 December 2015 – Single Discretionary Allowance
For the most competitive rates, low fees and unrivalled personal service all delivered by a Reserve Bank approved foreign exchange intermediary, talk to the team at finglobal.com. We’ll call you.