Residents who wish to transfer funds of in excess of their 1 million annual discretionary allowance can make use of the annual investment allowance of 10 million rand per adult.

Why is there a 10 million rand investment allowance?

For those of you not aware South Africa has in place exchange control. Exchange control governs, in part, what
amount of money a South African resident may transfer abroad each calender year.

In this case the regulations stipulate a Ten Million Rand Investment Allowance per calender year for adults.

Requirements for using your Ten Million Rand Investment Allowance

These include:

• The individual must be over the age of 18.
• A tax clearance certificate must be obtained.
• A BOP (balance of payments) form must be completed.

What is a tax clearance certificate?

A tax clearance certificate is issued by SARS (South African Revenue Service). It confirms that your tax affairs are in good order. Without this the Ten Million Rand Investment Allowance can be utilised.

What is a Balance of Payments Form (BOP)?

All cross-border transactions must be reported to the South African Reserve Bank in accordance with the South African Reserve Bank Regulations. Balance of Payments Reporting (BoP Reporting for short) is an electronic message system used by Authorised Dealers (i.e. Banks) to report cross-border transactions to the South African Reserve Bank (SARB).

What if you wish to transfer more than the 10 million rand investment allowance?

Firstly it is worth noting that a family unit of 2 adults can transfer up to 22 million rand annually. If this is still less than you wish to transfer then Incompass assists you in submitting an application to the Financial Surveillance Department of the South African Reserve Bank for approval of a greater amount.

How Incompass Helps?

As one of South Africa’s premier currency companies we are ideally placed to assist you with the transfer abroad of your R10 million rand investment allowance. We offer:

• Market leading rates.
• No service fees for transfers over ZAR50,000.
• Free tax clearance and BOP completion.
• Reserve Bank and FSCA approved.
• ISO 9001 and ISO 27001.
• Market leading service standards.

Contacting us

To find out more about how we can help you with the transfer of your ten million rand investment allowance call us on any of the numbers below or send us an e-mail.

Ph: Cape Town +27 (0) 21 424 2936
Ph: Johannesburg +27 (0) 11 234 4275

It was not so long in the past when investing offshore was near impossible for South Africans and as regulations eased the amounts were still very strictly controlled.

With the introduction of a 1 million rand discretionary allowance and a 10 million rand investment allowance now it is possible for a married couple to transfer up to R22 million annual allowance per year offshore.

How to get to a Twenty Two Million Annual Allowance

As the allowances are per adult a married couple can each take:

• Two lots of the one million rand discretionary allowance.
• Two lots of the ten million rand investment allowance.

Total per calender per year is therefore R22 million rand which can be transferred out of South Africa.

What if you want to take out more than R22 million rand?

This is possible and if you wish to take out a larger sum than R22 million annual allowance, Incompass assists you in submitting an application to the Financial Surveillance Department of the South African Reserve Bank for approval of a greater amount.

How Incompass can help

As one of South Africa’s premier currency companies we are ideally placed to assist you with the transfer abroad of your R22 million rand investment allowance. We offer:

• Market leading rates
• No service fees
• Free tax clearance and BOP completion
• Reserve Bank and FSCA approved
• ISO 9001 and ISO 27001
• Market leading service standards.

Contacting us

To find out more about how we can help you with the transfer of your R22 million rand investment allowance call us on any of the numbers below or send us an e-mail.

Ph: Cape Town +27 (0) 21 424 2936
Ph: Johannesburg +27 (0) 11 234 4275

Below we learn about the One Million Annual Allowance that South African residents are able to transfer out of South Africa each calendar year. This one million allowance is also know as the discretionary allowance.

Why is there is an One Million Annual Allowance?

If you are not already aware South Africa operates a system of exchange control. For residents this means they receive certain allowances, that enable them to transfer a certain amount of funds out of South Africa, over a certain time period and for certain reasons.

One of these allowances is a one million annual allowance.

Who does the One Million Annual Allowance apply to?

• Residents over 18 years old qualify for a Single Discretionary Allowance of up to R1 million per calendar year.
• Residents under the age of 18 qualify for an allowance of R200,000.00 per calendar year (for the purpose of traveling only).
• See details here on how the annual travel allowance forms part of this one million rand

Is tax clearance required?

The discretionary allowance does not require any Tax Clearance Certificate for the individual transferring the money.

What is the One Million typical used for?

As a discretionary allowance it is up to the individual but typical uses include:

• travel.
• maintenance transfers.
• monetary gifts and loans.
• foreign tuition fees.
• weddings and other special occasions.
• investments.

What is the process for transferring abroad all or part of your discretionary allowance?

The first step is registration with us which is free of charge and carries no obligation with it. You then deposit the funds in the bank account of our approved dealer (Investec) and it is then a simple case of agreeing when you wish to effect the transfer. Note that it is not required for you to transfer 1 million rand all in one go, you can simply use as much or as little of your one million annual allowance as you desire.

Please also note that the allowance is per calender year, this means any part of the one million not used does not carry over, but is lost.

What if you want to transfer more than One Million?

There is a further annual allowance of R10 million rand per adult per calender year that you can also transfer, see here for more details.

How Incompass help

Incompass is the only ISO 9001 and 27001 certified currency introducer in South Africa. We are FSCA approved and all our transactions go through our authorised dealer (Investec).

Our role is simply to ensure you get the best exchange rate, the best service and with the least aggravation. We are proud that most of our clients come from referrals from existing clients and in our preferred supplier status to some of South Africa’s leading investment houses.

To find out more about how we can help you with the transfer of your one million allowance call us on any of the numbers below or send us an e-mail.

Ph: Cape Town +27 (0) 21 424 2936
Ph: Johannesburg +27 (0) 11 234 4275