Foreign Exchange and Taxation

For South African tax payers who have not previously formalized their foreign assets, it is necessary to formalize their foreign funds with the South African Revenue Bank.

The South African Reserve Bank Regularization Program

The Reserve Bank regulation program works as follows:

Depending on various factors those are “forfeit to the state” i.e. fee is changed to regulate the Unreported / unauthorized foreign funds.

It is possible for certain situations to be legalized without any “fee” i.e.

  1. Funds earned overseas
  2. Funds that are held by immigrants to South Africa prior to the arrival in South Africa.
  3. Funds inherited overseas (for funds inherited overseas from a non-South African resident)

Taxation VDP (Voluntary Disclosure Program)

In terms of this program a taxpayer would need to disclose and thus regulate their tax situation. If taxes were not paid since 2001 on foreign taxes, the income would be taxed without penalties but interest would be charged on late payment of taxes.

Foreign Exchange Allowance

All South Africans can transfer funds offshore by using their personal allowances.

Foreign Investment Allowance

R10 Million per adult per annum- a tax clearance certificate required. Available to all residents and non-residents 18 or plus year of age. Green bar-coded South African ID and subject to an active SARS tax record.

Discretionary Allowance (DA)

R1 million per adult, per annum-no tax clearance required. Available to all residents, South African non-residents may use the allowance only in the calendar year when leaving the country- 18 plus years of age. Green bar-coded South African ID and subject to an active SARS tax record.

Other foreign exchange services

  1. Emmigration Assistance
  2. Assistance with overseas interest allowances
  3. Application for foreign loans

Other Services We Provide Include:

  • Taxation
  • Completing personal and corporate income tax returns
  • Financial Statements of Close Corporations
  • Providing company secretarial services including Company and Close Corporations formations
  • Accounting Services
  • Advising generally on financial matters and financial management
  • Due Diligence Investigations
  • Computer Auditing
  • Incentives
  • Franchising
  • Wills and Trusts
  • Estate Planning and Administration
  • International Tax
  • New Business Establishment
  • Listings
  • Forensic Auditing and Investigations

Make sure you have the MOST TAX efficient structure