Residents who wish to transfer funds of in excess of their 1 million annual discretionary allowance can make use of the annual investment allowance of 10 million rand per adult.

Why is there a 10 million rand investment allowance?

For those of you not aware South Africa has in place exchange control. Exchange control governs, in part, what amount of money a South African resident may transfer abroad each calender year.

In this case the regulations stipulate a Ten Million Rand Investment Allowance per calender year for adults.

Requirements for using your Ten Million Rand
Investment Allowance

These include:

• The individual must be over the age of 18.
• A tax clearance certificate must be obtained.
• A BOP (balance of payments) form must be completed.

What is a tax clearance certificate?

A tax clearance certificate is issued by SARS (South African Revenue Service). It confirms that your tax affairs are in good order. Without this the Ten Million Rand Investment Allowance can be utilised.

What is a Balance of Payments Form (BOP)?

All cross-border transactions must be reported to the South African Reserve Bank in accordance with the South African Reserve Bank Regulations. Balance of Payments Reporting (BoP Reporting for short) is an electronic message system used by Authorised Dealers (i.e. Banks) to report cross-border transactions to the South African Reserve Bank (SARB).

What if you wish to transfer more than the 10 million rand investment allowance?

Firstly it is worth noting that a family unit of 2 adults can transfer up to 22 million rand annually. If this is still less than you wish to transfer then Merchant West Incompass assists you in submitting an application to the Financial Surveillance Department of the South African Reserve Bank for approval of a greater amount.