Forex alloawances for South Africans

Earlier the year the foreign exchange control requirements for South Africans were amended.

What is still not widely appreciated is that South African residents (natural persons), who are over the age of 18 years may be permitted to avail of a single allowance within an overall limit of R500 000 per individual per calendar year, without the requirement to obtain a tax clearance certificate, to cover the following discretionary allowances –

•      monetary gifts and loans;

•      donations to missionaries;

•      maintenance transfer;

•      travel allowance;

 

This discretionary allowance is in addition to the existing R2 million individual foreign capital allowance. To ensure accurate and comprehensive reporting of all data and cross border transactions, applicants must provide accurate information to enable the authorised dealers to correctly report the purpose of the transaction via the reporting system.