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HJF

A Few Questions Before Leaving Sa

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My wife and I are hopefully on our way to the US in the next year and I have a few questions.

 

The first one is regarding taking money out of South Africa when we leave. Does it need to be declared at all? or can we simply transfer it when we go. It will be less than R1mil.

 

The other one is regarding receiving gifts when we are in the USA. I had a look on the IRS website but I'm not sure I am understanding it correctly so I hope someone can clear it up for me. From what I have read there are gifts from corporations/companies and from individuals. From what I understood gifts from foreign individuals over $100 000 need to be reported exactly and for companies it was a much lower number +-$15 000. Am I understanding correctly that under those limits you have to declare the gift income but you do not have to specify the individual gifts and over those amounts you have to include exact details of the gifts?

 

The last questions is if there is a good way to get some of our money out of the country now? With the rand losing ground against the dollar it's not looking like it will get better before we leave.

 

Thanks

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HJF - some info on your questions:

 

1. The money you take out is not 'declared' but because of exchange control, whichever authorized entity you use, e.g. your bank, Travelex etc. does record the transfer, but you don't need to declare it anywhere else.

 

2. Receiving gifts in the USA. Usually it is the donor of a gift who pays the gift tax, but if the donor isn't subject to USA taxes, you, as the recipient could well be liable to pay the tax when submitting your annual return - best to work with a tax professional on that at the time. Remember, that if the gift originates in SA, the donor there is also subject to the SARS regulations and limits on gifts. e.g. the current limit is R100 000p.a. Above that, they pay tax.

 

3. You can avail yourself of the ability to invest offshore now, or at any time. You can do this through many banks - e.g. at ABSA you can open a Barclays offshore account and transfer the funds into a $ account. Other banks work with different partners.

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Malamute, on 12 Jan 2016 - 09:03 AM, said:

 

1. The money you take out is not 'declared' but because of exchange control, whichever authorized entity you use, e.g. your bank, Travelex etc. does record the transfer, but you don't need to declare it anywhere else.

 

 

Some funds need to be cleared by SARS, like the proceeds form annuities for instance. However, the "authorized entity" used by you will be able to tell you exactly what to do.

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