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South African Residents Temporarily Abroad - R1 Million Discretionary

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Hi all,


In amidst the chaos of last week where the South African Rand was sorely punished for the removal of Finance Minister Nene there was a little bit of good news for South Africans living abroad who still have funds in SA.


The South African Reserve Bank released a Circular on 10 December 2015 to the effect that South African residents who are living and working abroad temporarily (so indefinitely abroad without formally emigrating) may now avail of their R 1 million single discretionary allowance and the R 10 million foreign capital allowance per calendar year without returning to South Africa.


The requirement for a green bar coded ID or smart card, and a valid tax number remains a requirement.


Finally, just as a reminder, residents temporarily abroad may receive their SA monthly pension and/or income on retirement annuities; as well as monetary gifts.


The Rand depreciated 10% in 48 hours on the announcement of Nene’s removal from his position and then proceeded to recover 5% with the change in mindset and subsequent appointment of Pravin Gordhan. A net loss though of 5% in 3 working days! We saw the Rand trade as high as 16.05 on USD, 11.40 on AUD and 24.40 on GBP on Friday in extremely volatile conditions. Fortunately some sanity has returned to the markets as Pravin Gordhan has returned to the position of finance minister, a position he vacated in 2014 and the recovery in the Rand appears to be a clear indication that markets are much happier with his ability to manage South Africa’s financial affairs. The Rand recovered to levels of 15.15 on USD, 10.95 on AUD and 22.90 on GBP and appears a little more stable for now.


Please contact me to assist you with your transfers, tax clearances and also emigration process.


Wishing all out clients a happy Christmas, a restful holiday season and best wishes for the New Year.


FX Capital

Currency Risk Management Specialists and International Trade Solutions

Cell: 079 877 2325

Tel: 021-671 0804

e-mail: tanya[at]forexcapital.co.za

Financial Services Board License No 37166





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That's excellent news! Just a question Tanya, although this doesn't apply to me anymore it may be important to others - usually if you have not formally emigrated you need to get a tax clearance for transfers above the R1m discretionary allowance. Is this still the case and if so how does it work for someone living and working abroad who has not had to submit tax returns in SA?

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