Currency and Exchanges
guidelines for individuals
2024-08-05
Currency and Exchanges guidelines for individuals Disclaimer
2 of 35 19/2021
Financial Surveillance Department
Version control sheet for the Currency and Exchanges guidelines for individuals
Version number
Issue date
Circular number
1.0
2016-07-29
7-2016
1.1
2016-11-03
9-2016
1.2
2017-01-03
2-2017
1.3
2017-03-01
7-2017
1.4
2017-08-25
10-2017
1.5
2017-08-30
11-2017
1.6
2017-11-17
13-2017
1.7
2018-02-02
2-2018
1.8
2018-05-07
8-2018
1.9
2018-05-28
10-2018
1.10
2018-06-22
11-2018
1.11
2018-08-02
12-2018
1.12
2018-09-03
14-2018
1.13
2018-10-11
15-2018
1.14
2018-10-31
16-2018
1.15
2019-02-08
2-2019
1.16
2019-02-08
3-2019
1.17
2019-03-05
4-2019
1.18
2019-03-05
5-2019
1.19
2019-04-18
7-2019 and 9-2019
1.20
2019-07-02
13-2019
1.21
2019-07-18
15-2019
1.22
2019-11-12
23-2019 and 24-2019
1.23
2020-06-10
4-2020
1.24
2020-07-10
5-2020
1.25
2020-08-13
6-2020
1.26
2020-10-02
11-2020
1.27
2020-10-08
12-2020
1.28
2020-10-14
13-2020
1.29
2020-12-14
19-2020
1.30
2021-01-04
1-2021
1.31
2021-01-29
2-2021
1.32
2021-02-19
4-2021
1.33
2021-02-26
6-2021
1.34
2021-05-21
8-2021, 9-2021, 10-2021
1.35
2021-05-21
11-2021
1.36
2021-05-25
12-2021
1.37
2021-06-15
13-2021, 14-2021, 15-2021
1.38
2021-06-29
16-2021
1.39
2021-07-08
17-2021
1.40
2021-07-30
18-2021
1.41
2021-08-20
19-2021
Currency and Exchanges guidelines for individuals Disclaimer
3 of 35 9/2024
Version number
Issue date
Circular number
1.42
2021-10-20
20-2021
1.43
2021-02-22
1-2022
1.44
2022-04-05
14-2022
1.45
2022-04-08
15-2022
1.46
2022-04-25
16-2022
1.47
2022-09-28
22-2022
1.48
2022-11-02
23-2022
1.49
2023-02-03
1-2023
1.50
2023-04-04
2-2023
1.51
2023-05-24
3-2023, 5-2023, 6-2023
1.52
2023-10-13
7-2023, 8-2023
1.53
2024-01-26
1-2024
1.54
2024-04-19
3-2024
1.55
2024-04-24
4-2024
1.56
2024-05-07
5-2024
1.57
2024-05-07
6-2024
1.58
2024-06-20
7-2024
1.59
2024-07-12
8-2024
1.60
2024-08-05
9-2024
Currency and Exchanges guidelines for individuals Disclaimer
4 of 35 20/2021
Disclaimer
The Currency and Exchanges guidelines for individuals (guidelines) are issued to
assist individuals and other interested parties by providing a general understanding of
the exchange control system in the Republic of South Africa. It does not have any
statutory force nor does it replace or supersede the Exchange Control Regulations
(Regulations) promulgated in terms of section 9 of the Currency and Exchanges Act,
1933 (Act No. 9 of 1933) or any permission, exemption or condition granted or attached
to certain transactions in terms of the Regulations.
The arrangements set out in the guidelines should in no manner be construed as
absolving individuals from their duties and obligations under any other law, including
but not limited to the Prevention of Organised Crime Act, 1998 (Act No. 121 of 1998),
the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001) and the Protection of
Constitutional Democracy against Terrorist and Related Activities Act, 2004
(Act No. 33 of 2004).
The Financial Surveillance Department of the South African Reserve Bank (Financial
Surveillance Department) views contraventions of the Exchange Control Regulations,
as well as any actions to circumvent the permissions and conditions contained in the
Currency and Exchanges Manual for Authorised Dealers in foreign exchange
(Authorised Dealer Manual) and the Currency and Exchanges Manual for Authorised
Dealers in foreign exchange with limited authority (ADLA Manual) in a serious light.
The Exchange Control Regulations, Orders and Rules, Authorised Dealer Manual and
the ADLA Manual are available on the South African Reserve Bank website:
www.resbank.co.za.
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Currency and Exchanges guidelines for individuals Table of contents
5 of 35 6/2023
Table of contents
Disclaimer ....................................................................................................................................... 4
Definitions ....................................................................................................................................... 6
1. Introduction ..................................................................................................................... 10
2. Authorised entities ........................................................................................................... 10
2.1 Authorised Dealers .......................................................................................................... 10
2.2 Authorised Dealer in foreign exchange with limited authority ........................................... 11
3. South African resident individuals ................................................................................... 12
3.1 Single discretionary allowance ........................................................................................ 13
3.2 Krugerrand coins ............................................................................................................. 13
3.3 Travel allowance ............................................................................................................. 13
3.4 Study allowances ............................................................................................................ 14
3.5 Residents temporarily abroad.......................................................................................... 15
3.6 Foreign capital allowance ................................................................................................ 16
3.7 Foreign currency holdings and other foreign assets held by resident individuals ............. 17
3.8 Intellectual property ......................................................................................................... 19
3.9 Import payments ............................................................................................................. 20
3.9.1 Import payments via credit and/or debit cards ................................................................. 20
3.9.2 Import payments via an Authorised Dealer in foreign exchange ...................................... 20
3.9.3 Philatelic imports and numismatic imports ....................................................................... 21
3.10 Miscellaneous commercial payments and receipts .......................................................... 21
3.11 Securities control............................................................................................................. 22
3.12 Legacies and distributions ............................................................................................... 22
3.12.1 Legacies and distributions from resident estates ............................................................. 22
3.12.2 Gifts and/or donations from non-residents ....................................................................... 23
3.12.3 Foreign inheritance and legacies from bona fide non-resident estate .............................. 23
3.12.4 Foreign inheritance and legacies from South African estates with foreign assets ............ 23
3.13 Export of goods ............................................................................................................... 24
3.14 Residents borrowing abroad ........................................................................................... 25
4. Private individuals who cease to be residents for tax purposes in South Africa ............... 27
5. Foreign nationals............................................................................................................. 29
6. Immigrants ...................................................................................................................... 31
7. The cross-border foreign exchange transaction reporting requirements .......................... 32
7.1 Integrated form ................................................................................................................ 33
8. Transactions with Common Monetary Area residents ..................................................... 34
8.1 Introduction ..................................................................................................................... 34
8.2 General ........................................................................................................................... 34
8.3 Travel .............................................................................................................................. 34
8.4 Export of motor vehicles .................................................................................................. 34
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Currency and Exchanges guidelines for individuals Definitions
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Definitions
In the Currency and Exchanges guidelines for individuals, unless the context indicates
otherwise:
ADLA means an Authorised Dealer in foreign exchange with limited authority, including
Bureaux de Change, independent money transfer operators and value transfer service
providers, who are authorised by the Financial Surveillance Department to deal in foreign
exchange transactions as determined by the Financial Surveillance Department.
ADLA Manual means the Currency and Exchanges Manual for ADLAs issued by the
Financial Surveillance Department to ADLAs under the powers delegated by the Minister of
Finance. The ADLA Manual contains the permissions, conditions and limits applicable to
the transactions in foreign exchange that may be undertaken by ADLAs and/or on behalf of
their clients, as well as details of related administrative responsibilities.
Authorised Dealer means, in relation to any transaction in respect of gold, a person
authorised by the Treasury to deal in gold and, in relation to any transaction in respect of
foreign exchange, a person authorised by the Treasury to deal in foreign exchange.
Authorised Dealer Manual means the Currency and Exchanges Manual for Authorised
Dealers issued by the Financial Surveillance Department to Authorised Dealers under the
powers delegated by the Minister of Finance. The Authorised Dealer Manual contains the
permissions, conditions and limits applicable to the transactions in foreign exchange that
may be undertaken by Authorised Dealers and/or on behalf of their clients, as well as details
of related administrative responsibilities.
CMA means the Common Monetary Area, which consists of Lesotho, Namibia, South Africa
and eSwatini.
Cross-border foreign exchange transaction means the purchase or sale of foreign
exchange with or for Rand.
Customs means Customs and Excise, a division of the South African Revenue Service.
Financial assistance includes the lending of currency, the granting of credit, the taking up
of securities, the conclusion of a hire purchase or a lease, the financing of sales or stocks,
discounting, factoring, the guaranteeing of acceptance credits, the guaranteeing or
acceptance of any obligation, a suretyship, a buy-back and a leaseback, but excluding:
(i) the granting of credit by a seller in respect of any commercial transaction directly
involving the passing of ownership of the goods sold from seller to purchaser; and
(ii) the granting of credit solely in respect of the payment for services rendered.
Financial Surveillance Department means the Financial Surveillance Department of the
South African Reserve Bank (responsible for the administration of exchange control on
behalf of the Treasury).
Foreign bank account means a f oreign c urrency b a nk account conducted by
residents with a bank outside the CMA in terms of the provisions of the Authorised Dealer
Currency and Exchanges guidelines for individuals Definitions
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Manual or a specific authority granted by the Financial Surveillance Department.
Foreign currency means any currency other than currency that is legal tender in South
Africa, but excludes the currencies of Lesotho, Namibia and eSwatini. Foreign currency is
deemed to include any bill of exchange, letter of credit, money order, postal order,
promissory note, travellers’ cheque or any other instrument of foreign exchange.
Foreign currency account means an account conducted by residents (natural persons
and institutional investors only) and non-residents in the nostro-administration of
Authorised Dealers in terms of the provisions of the Authorised Dealer Manual or a specific
authority granted by the Financial Surveillance Department.
Foreign direct investment means the objective of obtaining a lasting interest by a resident
entity in one economy (direct investor) in an entity resident in an economy other than that of
the investor (direct investment enterprise). The lasting interest implies the existence of a long-
term relationship between the direct investor and the direct investment enterprise, and a
significant degree of influence on the management of the enterprise. A direct investment
enterprise is defined as ‘an incorporated or unincorporated enterprise in which a foreign
investor owns 10 per cent or more of the ordinary shares or voting power of an incorporated
enterprise or the equivalent of an unincorporated enterprise’.
Foreign nationals mean natural persons from countries outside the CMA who are
temporarily resident in South Africa, excluding those on holiday or business visits.
Gold as referred to in Regulations 2 and 5 includes all forms of gold other than wrought
gold, as well as ingots, amalgam, concentrates or salts of gold buttons and trade scrap.
Gold as referred to in Regulation 3 includes wrought gold and gold coins.
Immigrants mean natural persons who immigrated from countries outside the CMA with
the firm intention of taking up or who have taken up permanent residence in South Africa.
Integrated form means the electronic or paper format of a contract between an Authorised
Dealer or ADLA and its client resulting in a balance-of-payments reporting obligation. It
includes a declaration to the effect that the information provided is true and correct.
ITAC means International Trade Administration Commission of South Africa established in
terms of section 7 of the International Trade Administration Act, 2002 (Act No. 71 of 2002).
MRN means the Movement Reference Number issued by Customs once goods have been
cleared.
Non-resident means a person (i.e. a natural person or legal entity) whose normal place of
residence, domicile or registration is outside the CMA.
Non-resident Rand means Rand to or from a non-resident account that may be deemed, in
certain circumstances permissible elsewhere in the Authorised Dealer Manual, as an
acceptable payment mechanism in lieu of foreign currency. It should be noted that non-
resident Rand cannot in any manner be defined as foreign currency. It is purely Rand held
in a non-resident account or Rand received from a non-resident source.
Non-resident Rand account means the Rand account of a non-resident conducted in the
Currency and Exchanges Guidelines for Individuals
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books of an Authorised Dealer.
Passenger ticket means a ticket issued in respect of travel arrangements, inclusive of
electronically issued tickets (e-tickets).
Rand means the monetary unit of South Africa as defined in section 15 of the South African
Reserve Bank Act, 1989 (Act No. 90 of 1989).
Regulations mean the Exchange Control Regulations, 1961 as promulgated by
Government Notice R.1111 of 1961-12-01, as amended from time to time.
Related party means a party to a transaction that has a direct or indirect interest in the other
party and has the ability to control the other party or exercise significant influence over the
other party in making financial and operating decisions or both parties are under common
control. For the purpose of the Authorised Dealer Manual, this includes transactions between
parties that belong to the same group of companies such as parent, subsidiary, fellow
subsidiary and/or an associate company.
Reporting System means the electronic FinSurv Reporting System used to transmit data
to the Financial Surveillance Department in an agreed format.
Resident means any person (i.e. a natural person or legal entity) who has taken up
permanent residence, is domiciled or is registered in South Africa.
Resident temporarily abroad means any resident who has departed from South Africa to
any country outside the CMA with no intention of taking up permanent residence in another
country, but excluding those residents who are abroad on holiday or business travel.
Restricted Authorised Dealer means a person authorised by the Financial Surveillance
Department to deal in foreign exchange utilising a locally issued credit card for permissible
cross border transactions.
SADC means the Southern African Development Community consisting of Angola,
Botswana, Democratic Republic of the Congo, Lesotho, Madagascar, Malawi, Mauritius,
Mocambique, Namibia, Seychelles, South Africa, eSwatini, United Republic of Tanzania,
Zambia and Zimbabwe.
SARS means the South African Revenue Service.
SARS Customs Declaration comprises the following set of documents:
(a) SARS Customs Declaration form, which is the form used by Customs to verify
importers or exporters’ self-assessment of goods declared for a Customs procedure.
The customs procedure is defined by the Procedure Category Code (A to L) in
conjunction with the Customs Requested Procedure Code (RPC) on the declaration;
and
(b) SARS Customs Supporting documentation, which is the commercial documents
(e.g. suppliers invoice, regulatory permit, transport document, currency
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conversion/duty calculation worksheet) upon which the SARS Customs Declaration
Form is completed; and
(c) SARS Customs Status Notification, which is the response issued by Customs
(Electronic Data Interchange (EDI) Response Notification/Customs Release
Notification) specifying the status or decision of Customs in respect of goods
declared.
Single discretionary allowance means the R1 million allowance available to residents
(natural persons) 18 years and older per calendar year.
Securities include quoted stocks, shares, warrants, debentures and rights, as well as
unquoted shares in public companies, shares in private companies, Government, Municipal
and Public utility stocks, non-resident owned mortgage bonds and/or participations in
mortgage bonds and short-term debt instruments. The terms scrip and share certificates
include any temporary or substitute documents of title such as Letters of Allocation,
Warrants, Letters of Allotments, Orphan Certificates, Balance Receipts and any other
receipts for scrip.
South Africa means the Republic of South Africa.
Treasury means, in relation to any matter contemplated in the Regulations, the Minister of
Finance or an officer in National Treasury who, by virtue of the division of work in National
Treasury, deals with the matter on the authority of the Minister of Finance.
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Currency and Exchanges guidelines for individuals Definitions
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1. Introduction
This document provides an overview of permissible foreign exchange related
transactions and the applicable requirements for individuals including private
individuals who have ceased to be residents for tax purposes in South Africa,
immigrants, foreign nationals and CMA residents when transacting with Authorised
Dealers or with ADLAs within the parameters of their respective appointment letters.
Enquiries must be directed to an Authorised Dealer or, where applicable, an ADLA.
Any request to the Financial Surveillance Department must be channelled through
an Authorised Dealer or ADLA. Full details applicable to the request must be provided
to the Authorised Dealer or ADLA who will place a comprehensive request before the
Financial Surveillance Department.
2. Authorised entities
2.1 Authorised Dealers
The offices in South Africa of the under mentioned banks are authorised to act, for
the purposes of the Exchange Control Regulations, as Authorised Dealers:
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Restricted Authorised Dealer
The office in South Africa of the under-mentioned bank is authorised to act, for the
purposes of the Regulations, as a Restricted Authorised Dealer in respect of
permissible credit card transactions per the quoted sections of the Currency and
Exchanges Manual for Authorised Dealers:
Name of entity – Restricted Authorised Dealer
African Bank Limited – Sections B.4(B) and B.16
Bank Zero Mutual Bank – Sections B.4(B) and B.16
Grindrod Bank Limited – Sections B.4(B) and B.16
Tyme Bank Limited – Sections B.4(B) and B.16
2.2 Authorised Dealer in foreign exchange with limited authority
The offices in South Africa of the entities listed hereunder are authorised to
act, for the purposes of the Regulations, as ADLAs. The ADLAs, dependent on their
category of appointment, are only authorised to conclude travel related transactions
and certain specified transactions under the single discretionary allowance:
Name of entity – ADLA
Category of
appointment
Border Forex (Pty) Limited
Two
Forex World (Pty) Limited
Two
Global Foreign Exchange (Pty) Limited
Two
Home Remitt (Pty) Limited
Two
Imali Express (Pty) Limited
Two
Inter Africa Bureau de Change (Pty) Limited
Two
Interchange RSA (Pty) Limited
Two
Master Currency (Pty) Limited
Two
Mukuru Africa (Pty) Limited
Two
NEC Money (Pty) Limited
Two
Sikhona Forex (Pty) Limited trading as Ria Money
Transfer
Two
Tourvest Financial Services (Pty) Limited trading as
Travelex
Two
Travel Forex (Pty) Limited trading as Travelex
Two
Access Forex (Pty) Limited
Three (MTO)
Currency and Exchanges Guidelines for Individuals
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Name of entity – ADLA
Category of
appointment
Clicksendnow (Pty) Limited
Three (MTO)
eZi Remit (Pty) Limited
Three (MTO)
Kawena Exchange (Pty) Limited
Three (VTSP)
Sasai Fintech (Pty) Limited
Three (MTO)
SendHome (Pty) Limited
Three (MTO)
Shop2Shop Money Transfer (Pty) Limited
Three (MTO)
Shoprite Money Transfers (Pty) Limited trading as
ShopriteSend
Three (MTO)
Teeenaar (Pty) Limited
Three (MTO)
Terra Payment Services South Africa (RF) (Pty) Limited
Three (MTO)
Tookiyo Trading (Pty) Limited
Three (MTO)
WorldRemit South Africa (Pty) Limited
Three (MTO)
Hello Paisa (Pty) Limited
Four
Mama Money (Pty) Limited
Four
Southeast Exchange Company (South Africa) (Pty)
Limited
Four
Category One : Travel related transactions only.
Category Two : Travel related transactions and certain prescribed single
discretionary allowance of R1 million per applicant within the
calendar year and offer money remittance services in
partnership with external money transfer operators.
Category Three: Independent money transfer operator or value transfer service
provider, facilitating transactions not exceeding R5 000 per
transaction per day within a limit of R25 000 per applicant per
calendar month.
Category Four : A combination of the services provided by Category Two and
Category Three ADLAs.
3. South African resident individuals
The foreign exchange restrictions on South African resident individuals have been
liberalised with the intention of reducing the administrative burden for individuals
undertaking foreign exchange transactions.
Individuals are permitted to conduct a foreign currency account with an Authorised
Dealer and/or a foreign bank account for the following purposes:
(a) for travel as authorised (see section 3.3 (h));
(b) foreign investment (see sections 3.1 and 3.6);
(c) legitimate foreign earned income (see section 3.6.4); and
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(d) foreign inheritance (see section 3.10).
The following dispensations listed hereunder are available to individuals:
3.1 Single discretionary allowance
3.1.1 A single discretionary allowance within a limit of R1 million per calendar year is
available to all South African residents who are 18 years and older, and in possession
of a valid green bar-coded South African identity document or smart identity
document card. This dispensation may be used for any legitimate purpose (including
for investment purposes abroad as well as the sending of gift parcels in lieu of cash
excluding gold and jewellery) at the discretion of the individual without any
documentary evidence having to be produced to the Authorised Dealer, except for
travel purposes outside the CMA, where certain prescribed documentation has to be
produced.
3.1.2 Foreign currency in the form of foreign notes may only be accorded by an Authorised
Dealer or ADLA for travel purposes.
3.1.3 Resident importers making import payments under this dispensation must have a
valid customs client number (CCN) issued by Customs. The registration code number
70707070 may be used only in cases where the value of goods imported is less than
R50 000 per consignment, subject to the limitation of three such consignments per
calendar year. The attention of importers is drawn to the requirement that the
consignment for which payment has been made from South Africa must be received
within four months from the date of payment. Should such consignment not be
received within the four month period, the importer must within 14 days of the expiry
of such period advise the Authorised Dealer through whom foreign currency was
purchased.
3.1.4 Individuals should note that when effecting payments for current account transactions
such payments may be made against the presentation to an Authorised Dealer of
documentary evidence in terms of subsection 3.7, while any other legitimate payment
may also be effected in terms of subsection 3.8 below. Such payments will not be
deducted from an individual’s single discretionary allowance limit of R1 million per
calendar year.
3.2 Krugerrand coins
In addition to the single discretionary allowance, residents may export Krugerrand
coins or the equivalent in fractional Krugerrand coins up to an amount of R30 000 as
gifts to non-residents, subject to the completion of the prescribed SARS Customs
Declaration.
3.3 Travel allowance
3.3.1 Individuals may also use the single discretionary allowance to avail of a travel
allowance through an Authorised Dealer or ADLA subject to the following conditions:
Currency and Exchanges guidelines for individuals Definitions
14 of 35 1/2022
(a) individuals, who are under the age of 18 years may not avail of a single
discretionary allowance as outlined in subsection 3.1 above, but may avail of
a travel allowance not exceeding an amount of R200 000 per calendar year;
(b) individuals may not avail of a travel allowance more than 60 days prior to their
departure and must present a valid passenger ticket when travelling by air,
bus, rail or ship;
(c) foreign currency may be availed of in foreign currency notes or traveller’s
cheques. The travel allowance may be transferred abroad to the traveller’s
own bank account and/or spouse accounts, but not to the account of a third
party. Minors travelling with parents, may have their travel allowances
transferred to their parents’ bank account abroad;
(d) bank credit and/or debit cards may also be used to avail up to 100 per cent of
the authorised prescribed or remaining allowance;
(e) in the event of any contravention of the provisions of the Regulations a
cardholder may be deprived of the use of all cards apart from being liable to
prosecution;
(f) any unused foreign currency must be resold within 30 days to an Authorised
Dealer or ADLA upon return to South Africa. However, business travellers
going abroad on recurring business trips, where the next business trip is to
commence within 90 days after returning from a previous business trip, any
unutilised foreign currency may be retained by the traveller for use during
subsequent business trips;
(g) up to R25 000 in Rand notes, per person, may be taken in addition to the travel
allowance, when proceeding on visits outside the CMA, to meet the travellers’
immediate needs on return to South Africa;
(h) a travel allowance may only be accorded by an Authorised Dealer or ADLA to
a travellers abroad, without returning to South Africa, provided that the annual
limit is not exceeded; and
(i) foreign currency may be purchased by foreign diplomats, accredited foreign
diplomatic staff as well as students with a valid student identity card from other
CMA member countries whilst in South Africa. CMA residents, in South Africa,
may be accorded foreign currency to cover unforeseen incidental costs whilst
in transit, subject to an Authorised Dealer or ADLA viewing a passenger ticket
confirming a destination outside the CMA.
3.4 Study allowances
3.4.1 Individuals proceeding abroad for study purposes may avail of the R1 million single
discretionary allowance. Spouses accompanying students also qualify for the
aforementioned facility.
Students may also export any household and personal effects, including jewellery
(but excluding motor vehicles), up to a value of R200 000 per student under cover of
Currency and Exchanges guidelines for individuals
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the prescribed SARS Customs Declaration.
In addition to the foregoing, Authorised Dealers may transfer directly to the institution
concerned the relative tuition and academic fees for the academic year, against
documentary evidence confirming the amount involved.
Students under the age of 18 years also qualify for a study allowance to pay for costs
associated with their studies abroad as well as a travel allowance of R200 000 per
calendar year.
To avail of this dispensation, residents must produce to an Authorised Dealer:
(a) documentary evidence from the institutions concerned confirming that the
student has been enrolled for a course for the period claimed; and
(b) evidence of the tuition and academic fees in the form of a letter or prospectus
from the institution to be attended.
3.4.2 Should a student require a continuation of the above-mentioned transfers during a
period following the initial 12 months, fresh documentary evidence complying with
the requirements of 3.4.1 (a) and (b) above must be submitted to an Authorised
Dealer.
3.5 Residents temporarily abroad
3.5.1 A resident proceeding abroad temporarily, may on departure and annually
thereafter, through an Authorised Dealer and/or ADLA, avail of the R1 million single
discretionary allowance and the R10 million foreign capital allowance without
returning to South Africa (see subsection 3.6 below). The green barcoded identity
document or Smart identity document card must be presented to an Authorised
Dealer prior to the resident travelling temporarily abroad. In addition, with regard to
the R10 million foreign capital allowance, a TCS PIN verifying the taxpayer’s tax
compliance status obtained via SARS eFiling must be presented to an Authorised
Dealer prior to effecting any transfers. Authorised Dealers must ensure that the
amount to be transferred does not exceed the amount approved by SARS.
Authorised Dealers should note that the TCS PIN can expire and should the
Authorised Dealers find that the TCS PIN has indeed expired, then the Authorised
Dealer must insist on a new TCS PIN verifying the taxpayer’s tax compliance status.
Where residents temporarily abroad make use of a general or special power of
attorney to facilitate future transfers, a certified copy of the valid green barcoded
identity document or Smart ID card must accompany the power of attorney.
The annual limit of the R1 million single discretionary allowance and the R10 million
foreign capital allowance dispensations may not be exceeded without prior Financial
Surveillance Department approval.
Residents temporarily abroad may use their local debit and/or credit cards whilst
temporarily abroad within the overall single discretionary allowance limit of R1 million
per applicant during a calendar year.
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3.5.2 Residents temporarily abroad may further receive pension and retirement annuity
income but no other foreign currency may be availed of without the specific approval
of the Financial Surveillance Department.
3.5.3 Any household and personal effects, motor vehicles, caravans, trailers,
motorcycles, stamps and coins (excluding coins that are legal tender in South Africa)
per family unit or single person, where the insurance value does not exceed
R1 million may be exported against the prescribed SARS Customs Declaration.
3.5.4 Farming implements, where the insurance value does not exceed R1 million, may
be exported, against the prescribed SARS Customs Declaration, by persons
proceeding into Africa for farming purposes.
3.6 Foreign capital allowance
3.6.1 A foreign capital allowance may be availed of through an Authorised Dealer, which
may be transferred to a foreign currency account with a local Authorised Dealer or
invested abroad, within a limit of R10 million per calendar year per individual, subject
to a TCS PIN verifying the taxpayer’s tax compliance status and green bar-coded
South African identity document or Smart identity document card and is 18 years
and older.
3.6.2 The funds to be transferred must be converted to foreign currency by an Authorised
Dealer.
3.6.3 The Financial Surveillance Department will consider applications by private
individuals via an Authorised Dealer to invest in different asset classes offshore in
addition to the abovementioned allowance. Private individuals wishing to avail of
this dispensation must first approach SARS to obtain a TCS PIN verifying their tax
compliance status report, which must accompany their application to the Financial
Surveillance Department for consideration.
3.6.4 Private individuals may, as part of their single discretionary allowance and/or foreign
capital allowance, export multi-listed domestic securities to a foreign securities
register in a jurisdiction where such securities are listed, subject to tax compliance
and reporting to the Financial Surveillance Department via a Central Securities
Depository Participant, in conjunction with an Authorised Dealer.
3.6.5 Private individuals may only fund online international trading accounts at registered
brokers in terms of the single discretionary and/or foreign capital allowance, i.e. the
Authorised Dealer concerned must convert the Rand into foreign currency and
transfer such funds via the banking system as an Electronic Funds Transfer to a
foreign bank account or the funds can be deposited in a foreign currency account at
an Authorised Dealer. No South African debit, credit and virtual card may, however,
be used to fund a foreign currency account at an Authorised Dealer or a bank
abroad, nor may international trading accounts of private individuals be funded using
South African credit, debit and virtual card transfers. Online international trading
accounts, inter alia include trading global currencies against each other, trading a
contract for difference, trading in foreign stocks, trading commodities including
crypto currencies and/or trading foreign indices using an online trading platform of
the broker concerned.
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3.7 Foreign currency holdings and other foreign assets held by resident
individuals
3.7.1 Foreign currency holdings
Individuals and foreign nationals who are holders of foreign currencies outside South
Africa must, unless exempted elsewhere in terms of the provisions of this document,
offer to sell their holdings to an Authorised Dealer within 30 days from the date of
becoming entitled thereto.
A serious view will be taken by the Financial Surveillance Department of any
unauthorised retention of foreign currency balances, whether with foreign banks,
overseas principals, agents or shippers.
3.7.2 Funding structure
Individuals may raise loans abroad to finance the acquisition of foreign assets without
recourse to South Africa. Only authorised foreign assets may be used as collateral
in this instance and under no circumstances may local guarantees or suretyships be
issued or may South African assets be encumbered.
Individuals are allowed to participate in offshore share incentive or share option
schemes, provided that such participation is financed under the R10 million foreign
capital allowance and/or the R1 million single discretionary allowance.
Individuals are allowed to take up new shares in foreign companies that have
accrued by way of rights on existing holdings of shares, provided that transfers in
payment thereof are dealt with in terms of the R10 million foreign capital allowance
and/or the R1 million single discretionary allowance.
3.7.3 Income earned abroad and foreign capital introduced
Income earned abroad on or after 1997-07-01 may be retained abroad. It should be
noted that income earned abroad and own foreign capital introduced (excluding
export proceeds, sale proceeds from the sale of South African assets and capital
repatriated on which the 5 per cent levy has been paid in terms of the Exchange
Control Amnesty and Amendment of Taxation Laws Act, 2003 (Act No. 12 of 2003)
into South Africa from the above-mentioned date by individuals resident in South
Africa, may be re-transferred abroad (excluding any growth on the funds introduced).
Documentary evidence confirming that the income and/or capital had previously been
converted to Rand must be furnished to the Authorised Dealer concerned and only
the Rand equivalent of any amount repatriated is eligible for re-transfer abroad.
In cases where income is earned abroad as a result of services rendered by
individuals normally resident in South Africa, such individuals should be physically
abroad whilst rendering these services, in order to qualify for the aforementioned
dispensation.
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3.7.4 Disposal of legal foreign assets
Individuals may with effect from 2022-02-23 dispose of their authorised foreign
assets to other individuals, subject to local tax disclosure and compliance by the
relevant parties.
It should be noted that where the authorised foreign asset is sold to a private
individual with recourse to South Africa, the transfers in payment thereof must be
dealt with in terms of the R10 million foreign capital allowance and/or the R1 million
single discretionary allowance.
Any sale of the authorised foreign assets to private individuals where payment will
take place locally in Rands resulting in no cross-border flow of funds other than
change of ownership, such transactions must be referred to the Financial
Surveillance Department and will also be subject to local tax disclosure as well as
compliance by the relevant parties.
Contraventions that occurred before 2022-02-23 must still be regularised with the
Financial Surveillance Department.
3.7.5 Donations of legal foreign assets
Individuals may with effect from 2022-02-23 donate authorised foreign assets to
other private individuals, subject to local tax disclosure and compliance by the
relevant parties.
The donations may also be retained abroad, subject to local tax disclosure and
compliance by the relevant private individuals.
Contraventions that occurred before 2022-02-23 must still be regularised with the
Financial Surveillance Department.
3.7.6 Lending of legal foreign assets
Individuals may with effect from 2022-02-23 lend authorised foreign assets to
residents, including trusts, subject to local tax disclosure and compliance by the
relevant parties.
Where the authorised foreign assets are lent to other residents for use abroad, such
transactions must take place without any recourse to South Africa. Any
arrangements to repay such foreign commitments from South Africa and/or for
repayments to take place locally in Rands, such transactions must be referred to the
Financial Surveillance Department.
Where the authorised foreign assets are lent to other residents for use locally, the
matter must be referred to an Authorised Dealer.
Contraventions that occurred before 2022-02-23 must still be regularised with the
Financial Surveillance Department.
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3.7.7 Reinvestment into South Africa (“loop structures”)
Resident individuals with authorised foreign assets may invest in South Africa,
provided that where South African assets are acquired through an offshore structure
(loop structure), the investment is reported to an Authorised Dealer as and when the
transaction(s) is finalised as well as the submission of an annual progress report to
the Financial Surveillance Department via an Authorised Dealer. The aforementioned
party also has to view an independent auditor’s written confirmation or suitable
documentary evidence verifying that such transaction(s) are concluded on an arm’s
length basis, for a fair and market related price.
Upon completion of the aforementioned transaction, the Authorised Dealer must
submit a report to the Financial Surveillance Department which should, inter alia,
include the name(s) of the South African affiliated foreign investor(s), a description
of the assets to be acquired (including inward foreign loans, the acquisition of shares
and the acquisition of property), the name of the South African target investment
company, if applicable and the date of the acquisition as well as the actual foreign
currency amount introduced including a transaction reference number.
Existing unauthorised loop structures (i.e. created by individuals prior to 2021-01-01)
and/or unauthorised loop structures where the 40 per cent shareholding threshold
was exceeded, must still be regularised with the Financial Surveillance Department.
3.8 Intellectual property
The transfer of South African owned intellectual property by way of sale, assignment
or cession and/or the waiver of rights in favour of non-residents in whatever form,
directly or indirectly, is not allowed without the prior written approval of the Financial
Surveillance Department.
South African residents may, however, sell, transfer and assign intellectual property
to unrelated non-resident parties at an arm’s length and a fair and market related
price, provided they present to Authorised Dealers the sale, transfer or assignment
agreement and an auditor’s letter or intellectual property valuation certificate
confirming the basis for calculating the sale price. The dispensation excludes sale
and lease back agreements.
All inward funds emanating from such transactions must be repatriated to South
Africa within a period of 30 days from the date of becoming entitled thereto.
South African residents may license intellectual property to non-resident parties at
an arm’s length and a fair and market related price for the term of the agreement,
provided that they present Authorised Dealers with the licence agreement and an
auditor’s letter confirming the basis for calculating the royalty or licence fee.
All royalties and/or fees emanating from such transactions must be repatriated to
South Africa within a period of 30 days from the date of becoming entitled thereto.
The sale, transfer, assignment and/or licensing of intellectual property is subject to
appropriate tax treatment.
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3.9 Import payments
Payments effected under this section require the presentation of documentation and
will not be deducted from the single discretionary allowance limit of R1 million per
calendar year.
3.9.1 Import payments via credit and/or debit cards
Individuals with locally issued credit and/or debit cards are permitted to make foreign
currency payments for small transactions (e.g. imports over the Internet) by means
of such credit and/or debit cards. Payments are limited to R50 000 per transaction.
Cardholders will, however, not be absolved from ad valorem excise and custom
duties or from complying with the requirements imposed by Customs.
Any singular transaction exceeding R50 000 may not be split to circumvent the limit
applicable to this dispensation.
3.9.2 Import payments via an Authorised Dealer in foreign exchange
Individuals may purchase foreign currency for payment of imports via an Authorised
Dealer.
Where an import permit is required, residents must ensure that a covering import
permit issued by ITAC is obtained.
All applications for the importation of gold must be referred to the South African
Diamond and Precious Metals Regulator in terms of the Precious Metals Act, 2005
(Act No. 37 of 2005).
Payments for imports must be made against the following documentation:
(a) commercial invoices issued by the supplier;
(b) any one of the transport documents as prescribed by the International
Chamber of Commerce Uniform Customs and Practice for Documentary
Credits (UCP 600) and its supplement for electronic presentation, the eUCP,
evidencing transport of the relative goods to South Africa; or
Foreign currency payments for imports into South Africa may be effected on
any shipment and/or delivery term where the freight is included in the cost of
the goods being imported.
(c) Freight Forwarders Certificate of Receipt or Freight Forwarders Certificate of
Transport; or
(d) consignee’s copy of the prescribed SARS Customs Declaration.
In lieu of the documents referred to in points (b) and (c) above, arrival notifications
issued by shipping companies may be tendered.
All documentation must be retained by the resident for a period of at least five years.
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Since Botswana is a member of the Custom Union, imports from Botswana may be
paid for against the commercial invoice issued by the supplier and the consignee’s
copy of the prescribed SARS Customs Declaration.
Where goods for which payment has been made from South Africa have not been or
will not be consigned to South Africa within four months of the date of payment, the
importer must within 14 days of the expiry of such period advise the Authorised
Dealer through whom foreign currency was purchased of this fact.
In cases where an importer fails to provide import documentation or to report the
non-receipt of goods within the above-mentioned four month period to the Authorised
Dealer concerned, such Authorised Dealer may cease providing foreign currency to
the importer until the matter has been satisfactorily resolved. Any non-compliance
will be reported to the Financial Surveillance Department who may issue an
instruction to all Authorised Dealers that no foreign currency may be provided to such
importer until the matter has been satisfactorily resolved.
Individuals who wish to hedge their import commitments must approach their
Authorised Dealer in this regard.
3.9.3 Philatelic imports and numismatic imports
Residents must approach their Authorised Dealers who may grant foreign currency
in payment of import for numismatic (excluding South African gold coins minted in
1962 and thereafter) and philatelic purposes. The Authorised Dealer will furnish
applicants with a letter of authority for submission to the appropriate government
department.
The government department concerned will endorse, on the face of the letter, the
value of each parcel received in South Africa during the relative period. When this
authority has been fully used or on the date of its expiry, the relative letter of
authority must be returned to the Authorised Dealer concerned before a new letter
in respect of any subsequent period is issued.
Matters relating to the importation of medals, medallions, pendants and other similar
non-currency articles must be referred to ITAC.
3.10 Miscellaneous commercial payments and receipts
3.10.1 Payments effected under this section require the presentation of documentation
and will not be deducted from the single discretionary allowance limit of R1 million
per calendar year.
3.10.2 Miscellaneous commercial payments inclusive of associated costs to non-residents
may be effected via an Authorised Dealer in respect of legitimate foreign obligations.
3.10.3 The following conditions are also applicable:
(a) foreign currency payments may also be made in advance against documentary
evidence, e.g. an invoice or agreement;
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(b) residents may approach their Authorised Dealer to issue guarantees on their
behalf in favour of non-residents with the exception of guarantees for capital
transactions and currency transfer guarantees, which need to be referred via
an Authorised Dealer to the Financial Surveillance Department. Authorised
Dealers may also, where applicable, approve the extension of the
aforementioned guarantees;
(c) residents may not participate in lotteries organised abroad, as such
participation contravenes the Lotteries Act, 1997 (Act No. 57 of 1997).
Furthermore, in terms of the National Gambling Act, 2004 (Act No. 7 of 2004),
as amended by the National Gambling Amendment Act, 2008 (Act No. 10 of
2008), residents may not participate in any gambling activities not authorised
in terms of the afore-mentioned Act;
(d) South African securities may be exported by residents for sale abroad only
through an Authorised Dealer and the sale proceeds must be repatriated to
South Africa;
(e) residents may only purchase securities abroad within the R10 million foreign
capital allowance, within the single discretionary allowance limit of R1 million
per calendar year, or through the use of exempted foreign assets. All other
applications for purchases of securities abroad must be referred by the
Authorised Dealer to the Financial Surveillance Department; and
(f) residents must sell to Authorised Dealers within 30 days all foreign bank notes
received from non-residents as payment for legitimate transactions, e.g.
services rendered, gratuities, tips or gifts.
3.11 Securities control
Residents may not act as a nominee for a non-resident purchasing shares or
securities in South Africa, unless permission has been obtained via an Authorised
Dealer from the Financial Surveillance Department.
Residents of the CMA who deal in securities may not register an address outside
the CMA without obtaining the specific prior written approval of the Financial
Surveillance Department, via an Authorised Dealer. The applications to the Financial
Surveillance Department must contain full and precise details of the request.
Residents may under no circumstances have local dividends on South African
registered shares paid outside the CMA without specific prior written approval from
the Financial Surveillance Department.
Individuals can invest without restriction in locally managed investment products that
have foreign exposures, such as collective investment schemes and long-term
insurance policies.
3.12 Legacies and distributions
3.12.1 Legacies and distributions from resident estates
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Cash bequests and the cash proceeds of legacies and distributions from resident
estates due to non-resident private individuals, non-resident entities and/or trusts
may be remitted abroad, provided that the Liquidation and Distribution Account
bearing a Master of the High Court reference number is available. In cases where
the total assets of the resident estate is less than R250 000, cash bequests and the
cash proceeds of legacies due to non-resident private individuals, non-resident
entities and/or trusts may be remitted abroad, provided that the Last Will and
Testament and Letter of Executorship or Authority are available.
In all cases where such an estate holds authorised foreign assets, distribution of
the foreign assets may be effected to non-residents, provided that all foreign
administrative and related costs have been met from the foreign portion of the
estate.
Other assets inherited by non-residents may be exported under cover of the
required SARS Customs Declaration provided that such articles are bequeathed to
the beneficiaries in terms of the deceased’s will or otherwise in terms of the
Liquidation and Distribution Account bearing a Master of the High Court reference
number.
Capital distributions from local testamentary trusts due to non-residents may be
remitted abroad, provided that the trustees resolution confirming the capital
distribution and the Last Will and Testament confirming that the beneficiary is
entitled to such capital distribution are available.
Distributions as a result of the renunciation of a beneficiary’s right to capital of a
testamentary trust must be referred via an Authorised Dealer to the Financial
Surveillance Department.
3.12.2 Gifts and/or donations from non-residents
Individuals may, with effect from 2022-02-23, receive and retain abroad monetary
and other legitimate gifts and donations received from a non-resident source without
having to declare it to an Authorised Dealer, subject to local tax disclosure and
compliance. These dispensations shall not apply retrospectively and any
contravention before 2022-02-23 must still be regularised with the Financial
Surveillance Department.
3.12.3 Foreign inheritance and legacies from bona fide non-resident estate
Individuals are not required to declare to their Authorised Dealer inheritances or
legacies from bona fide foreign estates that accrued after 1998-03-17 and may retain
the capital and any income generated thereon abroad.
3.12.4 Foreign inheritance and legacies from South African estates with foreign assets
Individuals may without reference to the Financial Surveillance Department retain
foreign assets inherited from a South African estate, subject to local tax disclosure
and compliance.
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Where it is disclosed to the Financial Surveillance Department that the foreign
assets inherited were held by the deceased in a manner contrary to the provisions
of the Regulations, an application for regularisation of such assets must be
submitted via an Authorised Dealer to the Financial Surveillance Department.
If approved, the retention of such assets abroad may be subject to the payment of a
levy.
Foreign assets inherited and which were held abroad by the resident beneficiary not
in compliance with the provisions of the Regulations, must apply for regularisation
via an Authorised Dealer to the Financial Surveillance Department.
3.13 Export of goods
3.13.1 Individuals exporting goods must comply with the following conditions:
(a) complete a SARS Customs Declaration;
(b) sell goods exported within a reasonable time, but no later than six months from
the date of shipment;
(c) receive the full foreign currency proceeds in South Africa not later than six
months from the date of shipment;
(d) receive payment in foreign currency or Rand from a Rand from a Non-resident
Rand account in the name of the non-resident and/or Rand from a vostro
account held in the books of the Authorised Dealer;
(e) offer for sale to an Authorised Dealer the full foreign currency proceeds within
30 days after becoming entitled thereto; and
(f) report in writing to an Authorised Dealer the non-receipt of the full foreign
currency proceeds, within the prescribed period, as well as the failure to sell
the goods exported within six months from the date of shipment.
3.13.2 All motor vehicles exported for sale abroad must have an export permit issued in
terms of the International Trade Administration Act, 2002 (Act No. 71 of 2002).
In respect of the temporary export of motor vehicles to all countries outside the CMA,
residents must complete the prescribed SARS Customs Declaration and such vehicle
must be returned to South Africa within a period of six months.
3.13.3 All temporary exports of items or goods such as personal effects and jewellery to
countries outside the CMA, for which no payment is to be received in South Africa,
must where required, be supported by the prescribed SARS Customs Declaration.
These goods or replacement items must be returned to South Africa within a period
of six months.
Should the insurance value of the above-mentioned goods taken by the traveller
exceed R200 000, the prior written approval of the Financial Surveillance Department
must be obtained.
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Requests to export any items or goods, with an insurance value in excess of R50 000,
for which no payment will be received and where the items exported will not be
returned to South Africa, must be referred to the Financial Surveillance Department.
3.13.4 Residents who wish to hedge their exchange rate or currency risk must approach
their Authorised Dealer in this regard.
3.14 Residents borrowing abroad
3.14.1 Resident individuals must approach their Authorised Dealer to obtain approval to
avail of inward foreign loans and foreign trade finance facilities from any non-resident
and such loans must be recorded via the Loan Reporting System by the Authorised
Dealer concerned.
3.14.2 All applications for inward foreign loans and foreign trade finance facilities must, inter
alia, contain the following information which must be furnished to the Authorised
Dealer:
(a) full names of the local borrower;
(b) identity number or temporary resident permit number or registration number of
the borrower;
(c) full names of the foreign lender;
(d) domicile of the foreign lender;
(e) relationship between the foreign lender and the borrower;
(f) denomination of the loan;
(g) currency and amount of principal sum;
(h) interest rate and margin;
(i) purpose of the loan;
(j) details of the type of security required, if any;
(k) tenor. In instances where a loan will be repaid at a fixed future date, the date
on which the loan will be repaid must be provided and, where a loan will be
repaid in instalments, the date of the first instalment should be provided as well
as the interval of the instalments, e.g. monthly/quarterly intervals;
(l) copy of the loan agreement, if available/applicable;
(m) full details of early repayment options, as well as currency switch options, if
any;
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(n) in the case of foreign trade finance facilities, written confirmation from the
borrower to the effect that the relative import or export transaction is not being
financed elsewhere; and
(o) detail of any commitment fees, raising fees and/or any other administration
fees payable by the borrower.
3.14.3 The following minimum requirements must be met for the loan to be approved by the
Authorised Dealer:
(a) the tenor of each loan must be at least one month;
(b) the interest rate in respect of third party foreign denominated loans may not
exceed the base lending rate plus 3 per cent or, in the case of shareholders’
loans, the base lending rate as determined by commercial banks in the country
of denomination;
(c) the interest rate in respect of Rand denominated loans may not exceed the
base rate, i.e. prime rate, plus 5 per cent on third party loans or the base rate,
in the case of shareholders' loans;
(d) the fixed interest rate linked to the base rate, if applicable, may not exceed the
interest rate mentioned in (b) or (c) above. In this regard, approved inward
foreign loans should always be adjusted accordingly in line with the set criteria;
(e) the loan funds to be introduced may not represent or be sourced from a South
African resident’s foreign capital allowance, foreign earnings retained abroad,
funds for which amnesty had been granted in terms of the Exchange Control
Amnesty and Amendment of Taxation Laws Act, 2003 (Act No. 12 of 2003),
funds regularised under the Exchange Control Voluntary Disclosure
Programme and/or foreign inheritances;
(f) the loan funds may not be invested in foreign sinking funds;
(g) no upfront payment of commitment fees, raising fees and/or any other
administration fees are payable by the borrower;
(h) the above-mentioned fees may be paid from South Africa once the loan funds
have been received and converted into Rand locally, provided that such fees
do not exceed 5 per cent of the principal sum; and
(i) early repayments may be effected offshore, provided that the relevant loans
are fully drawn down, reported correctly on the Loan Reporting System and
that there are no anomalies on the Loan Reporting System.
If the above-mentioned requirements cannot be met, a suitable application must be
submitted via an Authorised Dealer to the Financial Surveillance Department.
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4. Private individuals who cease to be residents for tax purposes in South Africa
4.1 The concept of emigration as recognised by the Financial Surveillance Department
has now been phased out with effect from 2021-03-01.
4.2 The distinction between South African resident assets and non-resident assets
remains extant.
4.3 Authorised Dealers may allow the transfer of assets abroad, provided a private
individual:
(a) has ceased to be a resident for tax purposes in South Africa;
(b) has obtained a TCS in respect of “emigration” from SARS; and
(c) is tax compliant upon verification of the TCS.
4.4 In addition to (4.3) above, private individuals may in the same calendar year that they
ceased to be residents transfer via an Authorised Dealer up to R1 million as a travel
allowance, without the requirement to obtain a TCS PIN letter. This is a once-off
dispensation and cannot be used in subsequent calendar years. Private individuals
ceasing to be residents for tax purposes only qualify for the aforementioned travel
allowance, and may not avail of any unutilised portion of the single discretionary
allowance available to residents.
4.5 In addition, household and personal effects up to an amount of R1 million per family
unit may be exported under a SARS Customs Declaration form within the same
calendar year that the individual ceases to be a resident for tax purposes provided
such assets have been declared on the relevant forms. Transactions of this nature
will be treated similar to cash. For amounts in excess of R1 million, the provisions of
(4.6) and (4.7) below will apply.
4.6 In addition to the transfers mentioned in (4.5) above, Authorised Dealers may allow
the transfer of up to a total amount of R10 million per calendar year per private
individual who ceases to be a resident for tax purposes in South Africa and is 18
years and older, provided that the individual is tax compliant and submits the
applicable TCS Application for verification.
4.7 South African non-tax residents who transfer more than R10 million offshore are
subject, initially to a more stringent verification process by SARS; as well as a
subsequent approval process from the Financial Surveillance Department. Such
transfers will trigger a risk management test that will, inter alia, include verification of
the tax status and the source of funds, as well as risk assess the private individual in
terms of the anti-money laundering and countering terror financing requirements, as
prescribed in the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001).
4.8 With regard to (4.7) above, it is imperative that the application to the Financial
Surveillance Department is accompanied by, inter alia, a TCS PIN letter that will
contain the tax number and TCS PIN to verify the taxpayer’s tax compliance status
and amount requested to be transferred.
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4.9 Any requests for further transfers of remaining assets will be subject to a TCS
application in respect of Foreign Investment Allowance (FIA) irrespective of the date
of emigration, i.e. prior or after 2021-03-01.
4.10 The externalisation of listed and unlisted domestic securities by individuals who
cease to be residents for tax purposes will be treated similar to cash, which will form
part of the foreign capital allowance and is also subject to the TCS process at SARS.
4.11 In respect of the withdrawal of retirement funds (lump sum benefits from pension
preservation, provident preservation and retirement annuity funds) when South
African residents cease to be residents for tax purposes in South Africa, payment of
lump sum benefits to such individuals shall only be allowed by Authorised Dealers if
the individual member has remained non-tax resident for at least three consecutive
years. The requirements stated in (4.6) and (4.7) above will apply.
4.12 All assets that were previously blocked as per a specific directive that was given by
the Financial Surveillance Department in terms of the provisions of Exchange Control
Regulation 4(2), may be dealt with as follows:
(a) In respect of income and capital distributions from inter vivos trusts, such
distributions may be transferred abroad, subject to the TCS process being
completed by the private individual and/or beneficiaries of the trust. For any
transfers above R10 million, the requirements of (4.7) above will apply.
(b) With regard to pre-inheritance gifts, such funds may be transferred abroad,
subject to the TCS process being completed by the resident donor. For any
transfers above R10 million, the requirements of (4.7) above will apply.
4.13 Applications by private individuals who cease to be residents for tax purposes and
who are no longer active on the SARS registered database and receive an
inheritance or life insurance policy (excluding lump sum benefits from pension
preservation, provident preservation, retirement annuity funds and annuities from
insurers) up to R10 million, will not be required to apply to SARS for a Manual Letter
of Compliance - Transfer of funds. For applications above R10 million, applicants are
required to obtain a Manual Letter of Compliance - Transfer of funds, from SARS.
4.14 On a once-off basis, the remaining cash balances not exceeding R100 000 in total
of private individuals who have ceased to be residents for tax purposes, may be
remitted offshore without reference to the SARS.
4.15 With regard to the gathering of statistical information on the assets and liabilities
declared by South African residents who cease to be residents for tax purposes, the
Financial Surveillance Department will rely on information collected by SARS via
the SARS TCR01 form.
4.16 In terms of the TCS system, a TCS PIN letter will be issued to the South African
residents who cease to be residents for tax purposes that will contain the tax
number. Authorised Dealers must use the TCS PIN to verify the applicant’s tax
compliance status via SARS eFiling prior to effecting any transfers. Authorised
Dealers must ensure that the amount to be transferred does not exceed the amount
approved by SARS. Authorised Dealers should note that the TCS PIN can expire
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and should the Authorised Dealers find that the TCS PIN has indeed expired, the
Authorised Dealers must request that the taxpayer must submit a new TCS
application to SARS to be issued with a TCS PIN.
4.17 Income due to private individuals who ceased to be residents for tax purposes in
South Africa may be transferred offshore, provided the Authorised Dealers ensure
that the amounts to be transferred are legitimately due to private individuals who
ceased to be residents for tax purposes in South Africa, ensure that suitable
arrangements are made to meet all local liabilities and verify a TCS of good
standing at least once a year to confirm that the private individual who ceased to be
resident for tax purposes in South Africa is tax compliant in respect of the transfer of
income referred below. With regard to (g) and (h) below, a TCS of good standing is
required at least once a year on applications up to R10 million and a tax compliance
status request – TCS FIA is required for above R10 million applications.
(a) interest and profit;
(b) dividends: Authorised Dealers may allow the transfer of dividends, profit
and/or income distributions from quoted companies, non-quoted companies
and other entities in proportion of percentage shareholding and/or ownership.
Authorised Dealers may not allow the transfer from South Africa of any
income earned outside South Africa, unless such funds represent the profits
of wholly-owned subsidiaries or of branches of South African registered
companies previously transferred to South Africa;
(c) income distributions from close corporations;
(d) directors’ fees or members’ fees;
(e) pension payments paid by registered funds only;
(f) cash bonuses on insurance policies;
(g) income received from a trust created in terms of a last will and testament;
(h) income received from an inter vivos trust;
(i) rentals on fixed property including rental pool agreements, provided that
rentals are substantiated by the production of a copy of the rental or rental
pool agreement;
(j) annuity payments;
(k) refunds paid by SARS, provided that Authorised Dealers are satisfied that the
beneficiaries are permanently resident outside the CMA; and
(l) salaries and/or fees payable in respect of services rendered.
5. Foreign nationals
5.1 On taking up temporary residence in South Africa, foreign nationals (except those
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who are purely in South Africa on a temporary visit) are required, on arrival, to declare
in writing to an Authorised Dealer:
(a) whether they are in possession of foreign assets and, if so, give an undertaking
to the effect that they will not place such foreign assets at the disposal of a third
party normally resident in South Africa; and
(b) that they have not applied for similar facilities through another Authorised
Dealer.
5.2 On receipt of such completed declarations and undertakings, foreign nationals may:
(a) conduct their banking on a resident basis;
(b) dispose of or otherwise invest their foreign assets, including foreign cash funds
held by them, subsequent accruals, as well as foreign income, without
interference from the Financial Surveillance Department;
(c) conduct Non-resident Rand accounts or foreign currency accounts in the books
of an Authorised Dealer; and
(aa) transfer abroad funds accumulated during their stay in South Africa
provided that the source from which they have acquired such funds can
be substantiated; and
(bb) the value of such funds is reasonable in relation to their income generating
activities in South Africa during the period.
(d) retransfer abroad capital which has been introduced into South Africa, provided
the individual can substantiate the original introduction of such funds.
(e) retransfer abroad household and personal effects, including motor vehicles,
provided that the items have been purchased with funds which would have been
transferable and/or the items have been imported into South Africa. The
individual must be able to substantiate the importation of any goods by
presenting documentary evidence to an Authorised Dealer. These effects may
be transferred abroad under cover of the required SARS Customs Declaration
5.3 The above provision excludes single transactions up to an amount of R3 000 per
transaction per day within a limit of R10 000 per applicant per calendar month. While
the personal banking of foreign nationals temporarily resident in South Africa may be
conducted on a resident basis, any interest held by such individuals in local entities
(i.e. legal persons) will be deemed as non-resident for the purposes of local financial
assistance.
5.4 On presentation of documentary evidence to an Authorised Dealer, foreign nationals
may also transfer lump-sum commutations and monthly pensions abroad.
5.5 In the case of mine labourers who are returning or who have already returned
permanently to countries outside the CMA, Authorised Dealers may approve the
transfer abroad of lump sum commutations as well as monthly pensions. Migrant
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labourers are also permitted, in terms of existing arrangements with Customs to take
with them reasonable amounts in the form of Rand notes representing their earnings
in South Africa.
5.6 Bonuses and surplus pension distributions may be transferred abroad provided that
documentary evidence is presented to the Authorised Dealer confirming same prior
to any transfer.
6. Immigrants
6.1 On taking up permanent residence in South Africa:
(a) immigrants are required, on arrival in South Africa to declare to an Authorised
Dealer, whether they are in possession of foreign assets and, if so, give an
undertaking that they will not place such foreign assets at the disposal of a third
party normally resident in South Africa; and
(b) immigrants must provide their Authorised Dealer with documentary evidence
substantiating that they have been granted permanent residence in South
Africa. They will then be regarded as immigrants with effect from the date of
their arrival in South Africa.
6.2 Persons who have applied for, but who have not been granted permanent residence
in South Africa, may avail of a single discretionary allowance of R1 million per
calendar year. The funds tendered in payment must represent either savings from
local earnings or the proceeds of foreign currency introduced to and exchanged in
South Africa.
6.3 Immigrants may be permitted to:
(a) dispose of or otherwise invest their foreign assets, including foreign cash funds
held by them, subsequent accruals and foreign earned income, without
interference from the Financial Surveillance Department, provided the
necessary declaration and undertaking were completed as outlined in 6.1(a)
above.
(b) Within five years of the date of their immigration, retransfer or re-export all own
assets introduced or imported during the five-year period (including growth),
provided that:
(aa) the necessary declarations and undertakings were completed on their
arrival in South Africa as outlined in 6.1(a) above; and
(bb) they can substantiate the original introduction or importation of such
assets.
(c) Within five years of the date of their immigration, transfer abroad their South
African assets in excess of those referred to in 6.3 (b) above, provided that:
(aa) the Authorised Dealer concerned is satisfied that the individuals will be
leaving South Africa permanently;
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(bb) the Authorised Dealer is satisfied that the assets to be transferred are
reasonable in relation to the growth resulting from such individual’s
business or employment activities and/or is market related; and
(cc) such transfers are not financed from local financial assistance facilities.
(d) After five years of date of their immigration, Authorised Dealers may permit
immigrants to retransfer or re-export the Rand equivalent of funds introduced
or own assets imported (including growth), provided that:
(aa) the necessary declarations and undertakings were completed on the
arrival in South Africa; and
(bb) they can substantiate the original introduction or importation of such
assets.
(e) Any household and personal effects, including motor vehicles, may be exported
under cover of the prescribed SARS Customs Declaration provided that the
goods to be exported have been purchased with funds that would have been
transferable and/or have been imported into South Africa. The individual must,
in need, be able to substantiate the importation thereof by the production of
documentary evidence.
6.4 Payments by immigrants:
(a) Immigrants may approach their Authorised Dealer for the provision of foreign
currency to cover current and arrear premiums due on foreign currency life
insurance policies or contributions to pension and medical aid funds, provided
that:
(aa) the necessary declarations and undertakings were completed; and
(bb) documentary evidence is presented, verifying the amounts due and that
the commitment was entered into before the applicants took up residence
in South Africa.
(b) Immigrants may, against the presentation to an Authorised Dealer of
documentary evidence confirming the amount involved, repay loans received in
their previous country of domicile.
(c) Immigrants may settle foreign tax commitments from South Africa against the
production of documentary evidence confirming the amount involved.
7. The cross-border foreign exchange transaction reporting requirements
Individuals must note that the reporting of all cross-border foreign exchange
transactions by an Authorised Dealer and/or ADLA to the Financial Surveillance
Department is compulsory. Accordingly, individuals must provide full details
pertaining to the relevant cross-border transaction as requested by the Authorised
Dealer and/or ADLA concerned.
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The objective of the Reporting System is to ensure accurate and comprehensive
reporting of all data by Authorised Dealers and ADLAs on transactions, irrespective
of the amount, for compilation of:
(a) balance-of-payments statistics by the Economic Research and Statistics
Department of the South African Reserve Bank;
(b) foreign debt statistics and repayment profiles to support monetary policy
decisions; and
(c) statistical information relating to the nature, volume and values of the various
cross-border flows and provide the appropriate information for economic and
financial management decisions, as well as planning and policy formulation.
7.1 Integrated form
Individuals must complete an integrated form in respect of all cross-border foreign
exchange transactions at an Authorised Dealer and/or ADLA.
When the individual is physically present at the Authorised Dealer/ADLA, the
integrated form must be completed and signed by the individual in respect of all
inward and outward payments.
When the individual is not physically present to complete and sign the integrated
form, the Authorised Dealer/ADLA may complete and sign the integrated form, either
physically or electronically, provided that the Authorised Dealer/ADLA has been
authorised or mandated to do so by means of a letter, a facsimile message, an email
message or by a recorded telephonic message to act on the individual’s behalf.
As an exception to the arrangement outlined in the preceding paragraph, an
integrated form need not be completed by the client of an Authorised Dealer in
respect of inward payments under R50 000 per transaction. In this regard, individuals
are advised to liaise with their Authorised Dealer regarding the conditions applicable
to this dispensation.
7.2 Declaration
The following declaration is included in the integrated form to be signed by the
individual:
“I, the undersigned……………………………………., hereby declare that:
1. I have read this document and know and understand the contents thereof;
2. the information furnished above is in all respects both true and correct;
3. the currency applied for will only be used for the specific purpose stated herein;
4. the documentation presented in support of this application is in all respects
authentic; and
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5. I have been informed of the limit applicable to the above transaction and confirm
that this limit will not be exceeded as a result of the conclusion of this
transaction.
6. I consent to this information being provided to the South African Revenue
Service and/or the Financial Intelligence Centre.”
8. Transactions with Common Monetary Area residents
8.1 Introduction
There are no foreign exchange restrictions between banks of the CMA member
countries in respect of cross-border transactions amongst themselves. Lesotho,
Namibia and eSwatini have their own monetary authorities and legislation. The
application of exchange control within the CMA is governed by the Multilateral
Monetary Agreement. Investments and transfers of funds in Rand from/to South
Africa to/from other CMA countries do not require the approval of the Financial
Surveillance Department.
CMA country currencies comprise of the following: South African Rand, Lesotho
Maloti, eSwatini Emalangeni and Namibian Dollar.
8.2 General
Individuals from other CMA countries should note that South African Authorised
Dealers are not permitted to enter into foreign exchange transactions (i.e. in foreign
currency other than CMA country currencies) with residents of other CMA countries.
If such requests are received, residents of other CMA countries will be referred
back to their bankers in the CMA country concerned.
8.3 Travel
As an exception to subsection 8.2 above, foreign currency may be purchased by
diplomats, accredited foreign diplomatic staff as well as students with a valid student
card from other CMA member countries while in South Africa.
Authorised Dealers and/or ADLAs may also sell foreign currency to CMA residents
in South Africa, to cover unforeseen incidental costs whilst in transit, subject to
viewing a passenger ticket confirming a destination outside the CMA.
CMA residents who travel overland to and from Namibia through Botswana qualify
to be accorded the Botswana Pula equivalent of an amount not exceeding R25 000
per calendar year. This allocation does not form part of the single discretionary
allowance limit of R1 million per calendar year for South African residents.
8.4 Export of motor vehicles
Motor vehicles principally designed for the transport of persons and goods, but
excluding vehicles exported by diplomatic and foreign representatives and new
vehicles exported by local manufacturers or their appointed agents, may not be
exported for sale outside the South African Customs Union, i.e. Botswana, Lesotho,
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Namibia and eSwatini except by virtue of an export permit issued in terms of the
International Trade Administration Act, 2002 (Act No. 71 of 2002).
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