What are the annual transfer limits?
There are two principal allowances available and it’s worth noting that exchange control permits spouses to move funds between each other for the purpose of applying a particular allowance.
Single Discretionary Allowance (SDA) – R1M
Foreign Investment Allowance (FIA) – R10M
Effectively this allows a married couple to transfer R22M offshore in each calendar year.
What is required for fund transfer?
To use either allowance you must hold a green bar-coded ID document or smart card.
To transfer funds via the “FIA”, you will also require a tax clearance certificate from SARS, i.e. proof that your tax affairs are up to date.
What’s the deadline for transferring funds?
This deadline for both allowances is 31st December 2016, however to ensure that the administration process completes in good time to allow the transfer of funds this year you really need to act by 1st December. If you miss the deadline you will have to revert to the relative 2017 allowance. That said if you need a tax clearance certificate and it’s issued in December 2016 it will remain valid for 12 months.
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