Foreign exchange limits increase - a new opportunity

The South African Reserve Bank’s Financial Surveillance Department [previously known as the Exchange Control Department] has relaxed the rules relating to SA resident individuals allowing investment abroad within the R1m discretionary allowance per calendar year.

It is important to note that no Tax Clearance is required but this discretionary annual R1m allowance per individual over the age of 18 years [and of good standing] includes the following:

• Travel Allowance
• Maintenance Transfers
• Monetary Gifts and Loans
• Study Allowances
• Alimony and Child Support
• Wedding expenses
• Donations to missionaries

The good news is that if you are not travelling abroad in any calendar year, each individual over the age of 18 years can invest up to R1m into an offshore investment. All the you have to do is consult with Silke Financial Services for advice. We have arranged for at a special rate with Global Treasury Solutions [GTS] of 0.40% of the currency converted into, to arrange for the transfer abroad.

See: https://online.allangray.co.za/common/factsheetviewer.aspx?d=0&n=Allan%20Gray%20Adviser%20Services%20-%20Exchange4Free.pdf for the GTS Service offering.

The R4m Foreign Investment Allowance is still available over and above this with the requirement of a Foreign Tax Clearance Certificate issued by SARS.