Time sure has flown! Feels like yesterday that we jotted down those new year’s resolutions in the diary and yet here we are, almost hailing in another new year. Indeed, we are now in the last term of 2016 – with loads of lists left to check off before the year breathes its last breath.
For those of us on foreign shores, this also signals the deadline for the annual exchange control allowances is getting closer. If you still have funds in South Africa that you wish to transfer abroad, you therefore need to make haste and get your admin sorted.
Annual exchange control allowances
This year’s deadline for fund transfers under the exchange control allowances falls on 1 December. This gives South Africans slightly more time than last year to utilise their single discretionary allowance, but less time to make use of their foreign investment allowance.
These two allowances enable South Africans both within and outside country borders to transfer funds offshore, provided these transfers fall within certain limits. While it may see like there are therefore a full twelve months in which to utilise these allowances, the deadlines have historically fallen at the end of November and beginning of December each year – giving individuals a mere ten to eleven months to do so.
South African exchange control regulations authorise the South African Revenue Service to keep an eye on funds traversing country borders, thereby nipping tax evasion and money laundering in the bud.
Limits and requirements for fund transfers
Saffa-emigrants can transfer up to R1 million offshore under their single discretionary allowance each year, and up to R10 million under their foreign investment allowance.
South Africans utilising their single discretionary allowance are required to present their ID document or smartcard, while those utilising their foreign exchange allowance will require a tax clearance certificate as well.
Any funds acquired via legal means can be transferred, whether income from property, investments, pension funds, trusts and so forth. Should you find the process to be exhausting or want to transfer funds like retirement annuities or the proceeds of an inheritance, you can apply for financial emigration.
Let cashkows.com do the legwork for you
Trying to organise finances across borders can be a nightmare. You will, for instance, have to deal with regulators and intermediaries in different jurisdictions ad the time difference as well as physical inaccessibility complicates the process.
Cashkows.com is an accredited financial services provider with comprehensive experience in all aspects of financial migration – whether you need help with your tax submissions, transfer of retirement money or foreign exchange, we can help you! Contact us for fast, professional and reliable service by visiting www.cashkows.com.
