Calling all expats who rely on their Single Discretionary Allowance (SDA) and Foreign Investment Allowance (FIA) in South Africa! Here’s an official heads-up for you!
If you haven’t applied for your Single Discretionary Allowance in South Africa yet – the time is now! Getting your applications in early will ensure that you comply with the regulations in place for South African exchange control limits. You may think that you have plenty of time, but the reality is that time is running out.
As the end of the year looms, and we all prepare for the festivities and downtime ahead, it’s easy to overlook the nitty-gritty details of expat finances. To ensure that all expats relying on our services are able to claim their annual allowance in time, we are setting the cut-off date for the transfer of SDA funds at the 24th of December 2020.
This is a precautionary measure as we need enough time to ensure that the funds reach the nominated offshore bank account before 31 December 2020.
If you already hold a SARS TCC for FIA but have not yet traded please note that the cut of date of 24 December 2020 applies to you too. If you chose to trade after that date the funds may reach you after the year end and will then fall into your 2021 calendar year, thus limiting the amount available to you during the remainder of 2021.
If you have not yet applied for your SARS TCC for FIA now is the time to do so as SARS (the South African Revenue Service) will be entering a “skeleton staff” phase over the festive season. This could spell trouble and disappointment for those who risk leaving things to the last minute.
For expats still wondering what Single Discretionary Allowance and Foreign Investment Allowances are and how they affect them when leaving South Africa and taking on the status of a South African Resident Temporarily Abroad , here’s what you need to know.
Single Discretionary Allowance South Africa
For new expats or those on the verge of leaving South Africa, a single discretionary allowance could prove most useful to you. A Single Discretionary Allowance allows South African expats, over the age of 18 to transfer up to R1 million abroad in a single calendar year (January to December) . Children under the age of 18 year are allowed to transfer up to R200 000.
Foreign Capital Allowance South Africa
The Foreign Capital Allowance is particularly useful to South African expats living abroad and still residents of South Africa. An applicant who is granted an FIA can transfer up to R10 million overseas in a single calendar year (January to December). This is in addition to the R1 million they can use from their Single Discretionary Allowance.
FinGlobal: your help with the challenges South African exchange control limits bring
Apply for Your Single Discretionary Allowance & Foreign Investment Allowance Now
At FinGlobal, while we provide premium advice and guidance to expats across the globe, we also offer a plethora of expat financial services, including assisting with SDA and FIA applications. To get your applications in and processed before SARS staff go on their annual leave, get in touch with us today. You can give us a call on +27 28 312 2764 or send us an email on firstname.lastname@example.org.