Your annual allowances expires soon on 31st of December 2022
At the start of each new calendar year, South African residents may avail themselves of new annual allowances granted by the South African Reserve Bank (SARB) under Exchange Control regulations. These allowances expire at the end of each calendar year on 31 December. Below we have set out an overview of these allowances available to you:
R1 million Single Discretionary Allowance (SDA)
South African residents are granted an annual Single Discretionary Allowance (SDA) of R1 million per calendar year by the SARB, to externalise funds for any legal purpose. The SDA does not require foreign tax clearance from SARS.
R10 million Foreign Capital Allowance (FCA)
In addition to the SDA, South African residents can also avail themselves of an additional Foreign Capital Allowance (FCA) of up to R10 million per calendar year. Unlike the SDA, the FCA requires foreign tax clearance from SARS which is valid for 12 months.
Special approval applications
If you want to externalise an amount greater than your annual allowances (R11 million collectively) in the same calendar year, you can apply to the SARB for approval to do so. The special approval remains valid for 1 year and an extension may be applied for if required.
If you are considering a currency transfer to invest offshore, purchase a property, or simply want to send your hard-earned savings abroad, you can still do so by using any available balance on your annual allowances before 31 December 2022. Should you require a new foreign tax clearance, please contact us as soon as possible. We would encourage you to apply now and avoid disappointment due to the inevitable year end delays at SARS. This will also put you in a position to transact quickly at any time in the future, so you don’t miss out on a favourable exchange rate.
Please note that any information in our posts, documents, infographics, emails etc is general information and should not be considered as providing financial advice. We therefore disclaim all liability and responsibility arising from any reliance placed on such information by any reader, client or visitor to our website. Though we make every effort to ensure the accuracy of the information provided we accept no liability for any inaccuracies.