Three ways to move money offsh

Three ways to move money offshore within exchange controls

National Treasury announced significant relaxation of exchange controls in the national budget in February this year, but according to Sable Forex MD, Andy Rissik, the paperwork demands are still an obstacle to moving money in or out of South Africa.

Three ways to move money offsh

“High Net Worth (HNW) individuals were pleased to receive some relief when South African residents’ foreign capital allowance increased from R4 million to R10 million per calendar year or on emigration, or R20 million per family, but many of our clients are experiencing long delays in their increased capital allowance being approved,” said Sable International’s forex MD, Andy Rissik.

Non-residents, however, are able to move all their funds offshore, as long as their paperwork is in order.

Rissik outlined three ways to ensure tax residents can move their money swiftly and without administrative hold ups:

1. Use an authorized forex broker

Since ordinary South Africans can’t deal directly with the Reserve Bank, but with an authorized exchange control dealer, many believe the banks are the only institutions authorized to move money internationally.

“Being a preferred non-bank forex broker, we move a considerable amount of money daily at competitive rates with no hidden fees,” said Rissik.

2. Ensure all your paperwork is up to date with SARS and your tax affairs in order

Despite further relaxation of exchange control, which has been systematically approached over the last few years, many clients are finding the process more difficult.  SARS requires significant paperwork and there are many hoops to jump through.

“Since the change in legislation in February, SARS will issue a tax certificate for the original R4 million, but our clients have to apply for tax clearance for the additional R6 million, to reach the new total of R10 million.”

3. Ensure you have all the required paperwork and exchange control requirements available when applying

When sending funds offshore, certain requirements must be met that include, obtaining appropriate tax clearance, clearance from the Reserve Bank, making declarations of adherence to transfer allowances (set amounts for personal transfers) and submitting audit trails of money remitted to South Africa that is to be repatriated.

“The list can be onerous and our trained brokers deal with SARS and Reserve Bank daily, so have full knowledge of all the requirements and know the details of your particular application,” he added.

“Currently our experience is that with the increase in foreign capital allowance, many of the obstacles are administrative and our turn-key solution can reduce delays and stress,” Rissik added.

Sable International is a group of professional services companies that specialises in small and medium-sized businesses, private individuals and clients with international interests or links. We manage the accounting, wealth, financial, currency and nationality needs of our clients and are fully qualified to provide a comprehensive business solution. We have offices in the UK, South Africa and Australia.




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