Foreign exchange transactions and foreign investment are unchartered territory to most people, not to mention the paperwork that goes with it. We strive to make our clients’ transactions as seamless as possible. South African residents’ foreign investments will typically fall in one of the following categories; Foreign Investment Allowance (FIA) , Individual Foreign Capital Allowance (FCA) and Special Approval Applications.
Every South African is granted a one million Rand cash transfer as a Foreign Investment Allowance (FIA) per annum from South Africa abroad, for any legal purpose. No tax clearance certificate is required. The annual discretionary allowance applies to all South African residents over the age of 18 years.
A South African resident tax-payer in good standing, can invest up to ten million Rand outside of the borders of South Africa per calendar year. A Tax Clearance Certificate will have to be obtained from the South African Revenue Services (SARS) to make use of the Foreign Capital Allowance. Domisa Treasury assists to obtain TCCs as required.
Domisa Treasury will also assist in all SARB (South African Reserve Bank) Special Approval applications, for outward transfers which are greater than the individual foreign capital allowance. The process starts by obtaining a letter of compliance from SARS, from there an application is made to the SARB. There are no limits on the value or number of the special approval applications and no exit levy or penalty is payable.
