I am assuming that you are a resident of South Africa since
nonresidents are generally not subject to stringent exchange controls.
You can legally invest R750,000 offshore provided that you have a tax
clearance certificate and exceed 18 years of age. More limited
amounts can be exchanged into foreign currency in accordance with
travel allowances. Other circumstances, described in detail in the
Exchange Control Manual that I have provided a link to below, also
permit residents to acquire foreign currency. In addition, you can
legally transfer an unlimited amount of funds between South Africa and
Namibia, Swaziland, and Lesotho (the Common Monetary Area). However,
these countries also maintain exchange controls which would limit your
ability to transfer funds to other countries aside from these three.
If you desire to transfer more than R750,000 offshore legally to a
country outside of the Common Monetary Area, you would need to apply
to Exchange Control for authorization. I have provided a link to the
portion of the Exchange Control Manual describing how to make such an
application.
Sincerely,
Wonko
"As a result, South African families with assets up to R800,000 are
completely free of exchange control."
"Exchange Control" South African Consulate-New York
http://www.southafrica-newyork.net/consulate/finance/exchangecontrol.htm
"The amount which each individual taxpayer (who must be "in good
standing" with the tax authorities (a tax clearance certificate is
required) and over the age of 18) may invest offshore is R750 000 per
person. Alternatively such amount may be held in foreign currency
deposits with authorised foreign currency dealers in South Africa. The
offshore investment allowance has however not been extended to trusts.
The income earned on investments may remain offshore.
R140 000 per person of twelve years and older per calendar year;
R45 000 per child under twelve years per calendar year. "
"Business Guide to South Africa" (2006) Werksmans
http://www.werksmans.co.za/sabusguide/part_02.htm
"Exchange Control Territory
In South Africa, official control is exercised over all transactions
involving the receipt and payment of foreign exchange into and out of
the Common Monetary Area (CMA). The Monetary agreement between South
Africa, Namibia, Swaziland and Lesotho provides for the free flow of
funds and access to capital markets between the countries.
Note: Lesotho, Namibia and Swaziland have their own exchange control
authorities. It follows that authorised dealers are not permitted to
enter into foreign currency transactions with customers of banks in
other CMA countries. If such requests are received, customers will be
referred back to their banks in the CMA country concerned. "
"Guide to Exporting from South Africa-Exchange Control" MBendi
http://www.mbendi.co.za/export/sa/exchange_control.htm
A comprehensive Exchange Control Manual describing all of the
regulations is found at: "Exchange Control Manual" South African
Reserve Bank http://www.reservebank.co.za/internet/publication.nsf/WLNV/F5F7B961A062172442256B20003FB07C?opendocument.
Various other circumstances allow for the acquisition of foreign
currency in prescribed amounts, such as foreign travel.
For outward capital transfers by residents above the limits stated in
the Exchange Control Manual or that do not fall under the existing
rules, residents can apply to Exchange Control through the head office
of the bank concerned for approval to purchase foreign currency. The
procedure doing so is found in: "D.5 Applications to Exchange Control"
South African Reserve Bank (August 2002)
http://www.reservebank.co.za/internet/Publication.nsf/LADV/06AFDF07AEDF814442256EC200495388/$File/D.pdf
Search terms: "South Africa" "blocked capital"; "South Africa" "exchange control" |
