+27 (0) 21 205 1980 info@domisa.co.za
FSP No 47661

Frequently Asked Questions

Personal International Transfers

• How can I transfer money overseas without hefty fees?

It’s easy to transfer money overseas without hefty fees. This is the benefit of using Domisa Treasury, there are no hidden fees or complicated pricing structures when transferring money abroad with us. We are transparent and consistent with our pricing structure, which is extremely competitive. Our online calculator is highly accurate.

• What is the best way to transfer money internationally?

Pay or receive money internationally by setting up an account with Domisa Treasury. We make international currency transfers simple and secure by facilitating the process with our banking partners to ensure you receive the best rates and customer service possible. We also ensure that all regulatory processes are followed and in so doing giving you peace of mind 

• How do I receive international payments?

Domisa Treasury is here to help guide you through the forex process when receiving payments from abroad in South Africa. We get you the best foreign exchange rates & there are no hidden fees or commissions. We also facilitate the opening of Foreign Currency Accounts if you wish to hold your funds in a currency other than Rand (ZAR) 

• How do I get a Tax Clearance Certificate (TCC) from SARS online?

You can request a Tax Compliance Status (TCS) online via eFiling. Once you have viewed your “My Compliance Profile”, you can request a Tax Compliance Status by selecting the Tax Compliance Status Request option and the type of TCS for which you would like to apply. Your accountant is often best placed to obtain clearance for you and your business. Domisa is also able to assist in this regard.

How much can I invest offshore?

Single Discretionary Allowance (DA) – Every South African is granted a one million Rand cash transfer allowance per calendar year from South Africa abroad, for any legal purpose. No tax clearance certificate is required.

Individual Foreign Capital Allowance (FCA) -A South African resident taxpayer in good standing, can invest up to ten million Rand outside of the borders of South Africa per calendar year in addition to the one million rand discretionary allowance. 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.

How long does it take for an international money transfer to clear?

Once all onboarding documentation is complete and accepted, we execute your Forex deal providing you with a deal confirmation. On settlement date the money transfer is processed via SWIFT which usually takes 24 hours to clear in the recipient’s international bank account. The funds will reflect with the value date of the Forex deal.

• How much money can you take out of South Africa tax free?

As a South African you can use a single discretionary offshore allowance of R1 million to take money offshore tax free.

You are also entitled to use an offshore allowance of R10 million, for which you will need to get a tax clearance certificate (in respect of foreign investments) from SARS. Domisa Treasury will be able to assist and advise should you wish to apply for the R10 annual offshore allowance

• How much money can an individual take out of South Africa?

There is no tax payable when taking money out of South Africa as long as you keep within the allowances as stimulated in the Single Discretionary Allowance (DA) & Individual Foreign Capital Allowance (FCA) where applicable. See FAQ How much can I invest offshore? for the applicable limits

• How do I choose a good money exchange rate to exchange foreign currency?

Exchange rates change every second of the day. Domisa Treasury will ensure you get a very competitive exchange rate benchmarked against the current market levels. Use our Live Client Prices tool on our website for an indication of the rates you will receive

• Why is the South African currency (ZAR Rand) so volatile?

South Africa is classified as an emerging market and because the Rand (ZAR) is one of the most liquid emerging market currencies the foreign investor community heavily trade & speculate on the Rand (ZAR).  Changes in global commodity prices and financial-market risk perceptions  is also a major driver of the rand’s volatility

• What is the cheapest way to transfer money internationally?

We have no doubt you will find that Domisa Treasury provides the cheapest way to transfer money internationally (for transfers > ZAR 50,000). We get you the best foreign exchange rates & there are no hidden fees or commissions. Use our Live Client Prices tool on our website for an indication of the rates you will receive

international money transfers

Business International Transfers

How much can a South African company invest offshore?

South African companies (excluding Trusts and Close Corporations) can make bona fide new outward foreign direct investments into companies of up to R1 billion per company per calendar year 

• Can a South African company invoice in a foreign currency?

Yes, South African resident companies and individuals may invoice in foreign currency for goods / services sold outside of South Africa. There are strict exchange control regulations within which companies need to operate. Domisa can assist you in implementing the most efficient, compliant process. We assist with SARB applications if required, setting up of local foreign currency accounts to optimize efficiency of flows as well as Treasury services both domestically and internationally. 

• How do you hedge exchange rate risk?

Domisa Treasury can assist SMME businesses in South Africa in hedging forex and managing their currency risk by facilitating the implementation of a combination of tools to achieve the optimal solution for their unique business needs. We leverage our strong market relationships to make solutions a reality for our clients. 

What we offer our clients:

Bank accounts – we facilitate the setup of foreign exchange transactional accounts with preferred providers

Rand (ZAR) accounts – High interest, no monthly fees, fully transactional internet banking

Foreign Currency Accounts – accounts available in all major currencies. No monthly fees, internet banking

International Payment Solutions – send, receive and hold foreign currency

International money transfer – pay foreign currency invoices directly from your currency account

Non-ZAR currency pairs – buy GBP with your USD for example

Please contact us for a free consultation to discuss your business needs and what Domisa Treasury could do to assist you in hedging forex and managing your foreign currency risk in the most efficient and cost-effective manner.

• How do you hedge currency risk with forward contracts?

 A Forward Exchange Contract (FEC) is a foreign exchange transaction where the value date of the transaction is greater than 2 business days into the future. The rate is agreed today for a date in the future, ensuring the client has certainty in relation to the future exposure in domestic currency.

• What is a foreign currency bank account?

A Foreign Currency Account (FCA) allows South African residents to hold funds that originate from abroad. These funds can therefore be kept in currency and withdrawn at the client’s convenience

Should I open a foreign currency account?

Foreign Currency Accounts can provide good benefits & cost savings to businesses where they can hold currency accounts to facilitate the receipt of revenue & the payment of expenses instead of converting to/from South African Rand on every business transaction

What are foreign currency deposits?

These are deposits of Foreign currency in Foreign Currency Accounts which are not converted into ZAR on receipt

How does a foreign currency account work?

A foreign currency account is simply a bank account for the business denominated in a foreign currency. Businesses with reasonable volumes of such transactions could increase profits by 5 – 15% simply by making them through foreign currency accounts

Please contact us for a free consultation to discuss your business needs and what Domisa Treasury could do to assist you in managing your foreign currency risk in the most efficient and cost-effective manner.

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