We offer a range of specialised services and solutions for individuals looking to deal in foreign exchange environments for varying purposes.
We assist in the transfer of funds out of South Africa (and visa versa) and by ensuring compliance with the requirements put forward by the South African Reserve Bank and facilitating the procedures thereof.
Any South African adult is legally allowed to transfer up to R 1 million out of the country annually in the form of discretionary allowance. This money may be used for any legal purposes abroad, including travel, study or investments and only requires a valid South African identity document and Income tax number obtained from SARS.
We assist in the transfer of these funds to ensure compliance with the following South African Reserve Bank regulations (extract below):
- Residents over the age of 18 years may avail of a travel allowance within the single discretionary allowance limit of R1 million.
- Residents under the age of 18 years may only be accorded a travel allowance of up to R200 000 per calendar year.
- Foreign exchange, in respect of a travel allowance may be provided in any authorised form. The travel allowance may also be transferred abroad to the traveller’s own bank account, but not to an account of a third party.
- Foreign currency for travel purposes may not be bought more than 60 days prior to the departure of the traveller.
- You may not use the foreign currency you purchase for any purpose other than stated/ declared when you purchased it.
- Travellers must convert unused foreign exchange to Rand within 30 days of returning to South Africa.
- In the case of a travel allowance, if you do not spend all the funds on holiday expenditure you may not keep the funds offshore or buy offshore assets.
- The cost of land arrangements (hotels, cruises, tours, etc.) forms part of your travel allowance, but payment locally of airfares do not.
- A Form NEP must be attested by your bank when the insurance value of goods taken out exceeds R50 000. When the value of the goods exceeds R200 000 prior approval of the Financial Surveillance Department of the South African Reserve Bank must be obtained before the Form N.E.P is attested by the bank.
- Travellers may also take up to a total value of R25 000 per person in the form of Rand notes.
Foreign Investment Allowance
For individuals looking to invest capital outside of South Africa, Fin Select aims to facilitate the process of investing abroad and ensuring you always conform to the rules stipulated by the South African Reserve Bank (extract below):
- A tax-payer in good standing and over the age of 18 years, can invest up to R10 million in his/her name outside the Common Monetary Area (CMA-Lesotho, Swaziland and Namibia), per calendar year. A Tax Clearance Certificate (in respect of foreign investments) must be obtained. These funds may not be reinvested into the CMA countries thereby creating a loop structure or be re-introduced as a loan to a CMA resident.
- In addition, up to R1 million, within the single discretionary allowance facility, can be transferred abroad, without the requirement to obtain a Tax Clearance Certificate.
Obtaining Tax Ckearance Certificates
We assist in the procedures surrounding obtaining tax clearance certificates, validating your status as a tax-payer for offshore investment purposes. We ensure that you receive the certificate in the prescribed format in order for us to submit it to various authorised dealers as prescribed by The Financial Surveillance Department.
At Fin Select, we understand how demanding emigration can be on you and your family and we strive to alleviate some of the stress associated with leaving the country. Our services aim to ease the processes linked to moving of assets out of South Africa.
As an individual emigrant, you are allowed a Foreign Capital Allowance of up R 10 million per calendar year, while family units may transfer up to R 20 million per year. We will assist in the transaction of these assets in accordance with emigration regulations set up by the South African Reserve Bank (extract below):
Emigrants qualify for the following facilities:
- Foreign Capital Allowance – R10 million per adult per calendar year or R20 million per family unit per calendar year;
- A travel allowance of up to R1 million per adult and R200 000 per child under the age of 18 years. The travel allowance may not be accorded more than 60 days prior to departure; and
- export of household and personal effects, motor vehicles, caravans, trailers, motorcycles, stamps, coins and minted gold bars (excluding coins that are legal tender in South Africa) within an overall insured value of R2 million.
We are also able to assist in the emigration formalisation process in terms of the following regulations:
Your emigration should be formalised through a local bank of your choice as follows:
- Complete a Form M.P.336(b) – Emigration: Application for foreign capital allowance. The form is available from the South African Reserve Bank website www.reservebank.co.za by following the links:
- Publications and Notices > Forms > Filter By Category: Financial Surveillance and exchange controls and Year: 2014 > Form MP336(b) Emigration: Application for foreign capital allowance.
- Obtain an Emigration Tax Clearance Certificate (IT21 (a)) from the South African Revenue Service (SARS). The Tax Clearance Certificate is based on the Form M.P.336(b), therefore, you will also have to provide SARS with a certified copy of the completed Form M.P.336(b).
- If you have resided permanently outside South Africa for a period longer than five years and you do not possess any assets other than an inheritance or insurance policies, it would not be necessary to obtain a Tax Clearance Certificate.
- Submit the Form M.P.336(b) and the Tax Clearance Certificate, if applicable, to your bankers. You will also have to submit any other documentation as required on the Form M.P.336(b), which includes a copy of the permanent residence permit, if you have been granted permanent residence abroad.
Opening of Blocked ZAR accounts
Blocked accounts occur when exchange control restrictions have been applied to the remaining assets of an emigrant. Once your emigration status has been recorded, all monetary transfers must be channelled offshore via this account.
We assist in the opening of these accounts in accordance with the regulations set out by the South African Reserve Bank (extract below):
- The remaining South African assets of the emigrant must be brought under the physical control of the bank who finalised the emigration to ensure that all capital accruing after date of emigration and the proceeds of any asset subsequently sold are placed to the credit of a blocked account.
- Such funds may be utilised locally for any purpose.
- The Financial Surveillance Department of the South African Reserve Bank will, on application, consider requests to transfer the emigrants’ remaining liquid assets or the export of quoted securities in lieu of cash, exceeding the foreign capital allowance limits.
The proceeds from insurance policies may be transferred directly to the emigrant abroad where the emigrant has no bank account in South Africa, provided the person’s emigration has been formalised and that the foreign capital allowance limit will not be exceeded.