As of 1 January 2012 South Africans can use their R1 million discretionary allowance for foreign investment without having to apply for tax clearance.
The R1 million discretionary allowance was previously allowed to be used for travel, gifts, donations, study, loans etc.
The R4 million foreign investment allowance can still be used as per normal by applying for tax clearance for foreign investment allowance from SARS.
This R1 million allowance can be used by South Africans temporarily abroad, i.e. South Africans living in foreign countries that have not formally emigrated in terms of exchange control.
FX Capital
FX Capital is a registered financial services company that is established since 2004 and specialises in foreign exchange, foreign payments and currency risk management. Our clients include companies and private individuals and we are able to offer expert advice and service in addition to excellent savings on exchange rates and bank fees due to the large volumes we do with our partner banks.
Services to Companies include:
- Currency risk management
- Hedging strategies
- Treasury management
- Foreign Investment Allowances – families qualify for R4 million per adult per annum
- Discretionary allowance – R1m per adult and R200k per child allowed per annum – used for foreign investment, travel, gifts, study
- Emigration allowances
- Foreign loan repayments
- Forward cover and hedging facilities for the discerning client
- SARS tax clearance applications
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