Want to transfer funds from a South African trust offshore? FinGlobal can obtain the necessary approval from the South African Reserve Bank.
Capital distributions from a South African inter vivos trust
Section B.2(J)(xii) of the South African Reserve Bank’s Currency and Exchanges Manual for Authorised Dealers permits the distribution of capital and income from a South African based inter vivos trusts to foreign beneficiaries, where previously, these were blocked in terms of Exchange Control Regulation 4(2).
South African expats whose emigration was finalised by the South African Reserve Bank and individuals who have ceased tax residency in South Africa will have to apply for an Approval for International Transfer tax clearance from the South African Revenue Service if they wish to transfer capital distributions from an inter vivos trust abroad. For the transfer of funds in excess of R10 million, exchange control approval must be obtained from the South African Reserve Bank.
Income distributions from a South African inter vivos trust
For the transfer of income distributions up to R10 million, individuals will have to apply for a Tax Compliance Status – Good Standing on an annual basis. For income transfers in excess of R10 million, individuals will have to apply for an Approval for International Transfer tax clearance from the South African Revenue Service.
If the income transfer is in excess of R10 million, exchange control approval must be obtained from the South African Reserve Bank.
What documents are required to receive a trust distribution as a non-resident?
You will need to furnish the South African Revenue Service with the following documentation:
- Copy of the trust deed and latest available financial statements of the trust
- 3 months’ worth of bank statements for you and from the trust
- Resolution passed by trustees to make a capital / income distribution
- Details of the source of funds that made it possible for the trust to make a capital distribution.
Contact us today regarding the transferring of funds from a South African based inter vivos trust.
