Most South Africans believe exchange controls are restrictive.
This is because they determine how much money an individual or business can transfer out of South Africa at any point in time.
Even though this is frustrating for South African residents and business owners,
It doesn’t mean you can’t transfer money overseas.
In fact, you can transfer as much money as you like,
Providing you follow the correct procedures, can demonstrate source of funds and demonstrate that you are tax compliant.
If you’re a South African residents wanting to transfer money,
You need to understand the regulations and how they apply to you.
As it stands,
Taxpayers over the age of 18,
Who are South African residents,
Are eligible for the following allowances:
R1 million Single Discretionary Allowance.
Your single discretionary allowance can be used for any legal purpose abroad (including travel, emigration, and investment). It is referred to as a discretionary allowance as you can transfer money out of South Africa without a tax clearance certificate or any supporting documentation.
R10 million Foreign Investment Allowance.
This allowance can be used for offshore investment, property investment or emigration. You will require a tax clearance certificate from SARS for anything over R 1M. If you need to transfer larger amounts, we can guide you through the process and help you obtain a tax clearance certificates.
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