Exchange Control (Excon) will remain part of the government’s control over the free movement of SA wealth. The Mark Shuttleworth case despite, Excon will be a day-to-day challenge for the foreseeable future.
South Africans living temporarily abroad are entitled to remit SA funds abroad. The permission is subject to South African Reserve Bank (SARB) and SARS (Revenue Service) process. The SARB process is relatively easy provided you stay within the annual limits.
Since 9 December 2015, Excon Residents residing temporarily abroad (i.e. they have not formally emigrated, albeit that they hold dual nationality) may use their South African debit and/or credit cards, outside SA, within the overall single discretionary allowance (SDA) limit of R1 million per adult per calendar year. The current SDA limit is R1m per calendar year and can be availed to as either a credit card spend or as a Foreign Investment Allowance (FIA) without the need of a tax clearance.
The taxman’s (SARS) approval are not always that easy, yet the process can now be launched online, using your eFile profile. Applying for the necessary tax directive can now be filed from abroad.
SARS tax directive requests, often trigger a tax audit into the applicant’s, his family trust or often into the SA business that was closed several years ago.
Clients facing anyone of the SARB or SARS challenges are invited to approach Breytenbachs Advisory for a quick and efficient process that often includes exchange rates much better than the rates quoted by the six major banks.
All forex transfers are done formally, using SARB approved platforms and intermediaries. We discourage clients from entering into private deals with friends and family. These deals are illegal, and both parties may face sanctions, their status jeopardised and could even result in forfeiture of funds.
Using approved forex dealers and platforms, allows South Africans to remit freely without prior approvals, allowing the funds to be correctly brought into South Africa.