South Africans wishing to invest abroad must do so within the remit of the South Africa Foreign Investment Allowance as prescribed by the South African Reserve Bank (SARB).

These regulations are known as exchange control regulations and they govern amongst other elements how much an individual may transfer abroad for the purposes of investment.

Highlights of the South Africa Foreign Investment Allowance

• Applicable to adults over the age of 18.
• The person wishing to utilize the annual foreign investment allowance must be a tax payer of good standing.
• The maximum per calender year is R10 million rand per adult.
• In addition, a further R1 million, within the single discretionary allowance allowance, can be transferred abroad. This R1 million does not require the obtaining of a Tax Clearance Certificate.

What if you wish to transfer more than R10 million rand?

This may be possible and Incompass can help you make an application to the Financial Surveillance Department of the South African Reserve Bank for approval.

Transferring your R10 million rand annual foreign investment allowance

Incompass offers you a real alternative to the historic route of using your bank. Whilst all of money transfers are processed by our Authorised Dealer (Investec Bank), due to the sheer bulk of transactions we introduce to them our clients benefit from better exchange rates and no service fees. A benefit we in turn can pass on to you our client. The result means more foreign currency for your rand.

You can also be assured that all transactions are via the banks client account, that we are FSCA and Reserve Bank Registered and are ISO 9001 and 27001 accredited.

Contacting Incompass

To find out more about how we can help you with any money transfers as part of your annual foreign 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

Incompass has been assisting South African Expats since its inception in 2003 and has clients based in all continents around the world.

We understand the need of the South African Expat to be able to access personalised service at the best rates from a company that understand the needs that are specific to the South African Expat.

We can assist with both transfers in and out of South Africa, as well as to most other major currencies around the world, accessing the very best rates on behalf of our clients. Whether you have a need to transfer a regular sum back home or make a larger one off transfer, contact Incompass forex and see what a difference we can make.

Ring us now for our South Africa expat currency transfer services on + 27 (0) 21 424 2936 during office hours or request call back here.

The South Africa annual travel allowance forms part of the annual discretionary allowance and is available to all individuals – adults and children.

Highlights of the South Africa Annual Travel Allowance

Residents over the age of 18 years may utilise the annual travel allowance (within the limits of the annual discretionary allowance) for an amount of up to R2 million per calender year.

Residents that are under the age of 18 years can utilise a reduced annual travel allowance of up to R400 000 per calendar year.

Foreign exchange obtained as a travel allowance can be obtained in any authorised form:

• The travel allowance can also be transferred abroad to the traveller’s own bank account, but not to an account of a third party.
• Foreign currency must be purchased no more than 60 days prior to the departure date.
• Unused currency must be exchanged back to Rand within 30 days of returning to South Africa.
• In the case of a travel allowance, if you do not spend all the funds on holiday expenditure you may not keep the funds offshore or buy offshore assets.

More about the Annual Discretionary Allowance

Discretionary Allowance limit

The annual discretionary allowance is restricted to no more than R2,000,000 per individual per calender year (children under 18 are restricted to R400,000).

It should be noted that the total discretionary allowance limit of R2,000,000 is applicable to all categories under the discretionary allowance section of the Exchange Control Manual which includes:

• Monetary gifts and loans.
• Donations to missionaries.
• Maintenance transfers.
• Travel allowance.
• Study allowance.

Eligibility

• Permanent residents of South Africa, this is applicable whether the individual is a South African citizen or permanent resident as long as in possession of a bar coded South African ID Book.
• Emigrants from South Africa who have been resident in South Africa for at least 5 years and are now leaving to take up residency in a country outside of South Africa on a permanent basis.

Calender year allowance

The significance of a calender year is that no unused allowance may be carried forward. If the travel period extends over the end of a calender year, a full allowance can still be applied for in the following year.

Where payment may be made

The discretionary allowance may be made into a bank account of the traveller abroad or in any other authorised form and minors may also have their allowances transferred into their parents account. No transfers to third party accounts are allowed.

What is considered when making an application

Authorised Dealers are designated certain responsibilities in terms of overseeing the exchange control consultation. They will take the following factors into consideration when granting authorisation:

• Passenger tickets, mode of transport, date of departure and destination
• Where passenger tickets are not the applicable mode of transport, the date of departure, the destination as well as the name of the border post from where the traveller will exit South Africa.
• Undertakings from the traveller that:
  • Travel will commence within 60 days from the date of the request for foreign exchange.
  • Further foreign exchange will not be purchased in excess of the applicable limits.
  • That in the event of the travel arrangements being cancelled, the provided foreign exchange will be resold to the authorised dealer within 30 days of cancellation.

Furthermore to ensure the foreign exchange sought is to be used in accordance with the purpose stated the following factors are taken into account:

• The duration of the visit abroad.
• The applicants ages (elderly people may require more comforts).
• Any disabilities or special needs.
• Aspects of the planned travel that may influence costs such as:
  • Accommodation costs.
  • Destination countries.
  • The make up of the estimated expenditure.
  • What allowances have already been used.
  • Any other special circumstances that may influence costs.

How Merchant West Treasury Solutions can assist

As you would expect from an experienced foreign exchange control company we are able to guide you through your applicable allowance and complete all the required paperwork on your behalf. Of course you will also enjoy the benefit of personalised service, no administration fees and the best of currency exchange rates.

If you are considering transferring your discretionary travel allowance contact Merchant West Treasury Solutions – the smart way to transfer your money.

Yes you can save money on your money transfers to South Africa and out of South Africa!

The options for transferring money in and out of South Africa are no longer restricted to the high street banks that most individuals and companies have traditionally used and this increased competition and the relatively new licensing of specialist currency companies means good news for those transferring money to South Africa.

Save money on Money Transfer Fees

Banks and many other institutions tend to levy fees when instructed to transfer money for you. These can range greatly but typically are between R300 and R500 in South Africa, £25 – £45 in the UK and €30 – €50 in Europe.

• Incompass levies no fees on your transaction

Save money by accessing better Exchange Rates

Transferring money is no different to buying any other product or service, the quoted exchange rate is nothing other than a sale price. Why pay more for exactly the same product or service than you need to?

As an example:

• If you were to transfer ZAR 1 million to Pounds at an exchange rate of 11 you would receive £90,909.
• If you were to transfer ZAR 1 million to Pounds at an exchange rate of 10.9 you would receive £91,743.

• A difference of just 0.1 may not seem much but the result is nearly £1,000 more in your bank account. With Incompass we offer highly competitive exchange rates that better the banks rates 99% of the time.

Save Money through better service

Watching the currency rates is a time consuming and complex process and is something rarely done. Even when rates are watched, by the time you pick up a phone and try to trade, the rate has already changed. This can lead to an acceptance of a quoted rate to remove the time constraints and hassle factor.

• With Incompass we will watch the rate for you and when it reaches the level you wish to trade at we will contact you.

Save Money by shopping around

Transferring money means following the basic principles of making any major purchase – shop around for the best deal.

• With Incompass registration is free of charge and once registered it is a phone call away to ascertain what rate we can obtain for you.

Save money by saving time and additional costs

This is particularly pertinent to individuals and businesses wishing to transfer money out of South Africa. Foreign exchange regulations have created an environment where the transfer of money out of South Africa can be complex and is always a ‘paperwork exercise’. Tax clearances and permissions must be obtained meaning time spent by the transferrer or costs incurred by enlisting the assistance of an accountant or professional to obtain these clearances.

• Incompass obtain the tax clearance and Reserve Bank approval for your transfer out of South Africa – saving you time and money.

Saving money by following exchange control regulations

Unique to just a few countries, South Africa being one of them, exchange control regulations governing the flow of money in and out of South Africa have a profound impact on your ability to move money. Contrary to many people’s beliefs how you transfer your money into South Africa does matter, if done incorrectly it could result in you paying a ‘fee’ of 10% should you wish to repatriate these funds at a later date.

• Incompass is able to ensure that any money transfers into South Africa comply with South African exchange control regulations. We are able to facilitate both transfers into and out of South Africa. Make sure your currency provider is able to provide you with transfers into and out of South Africa and has a full understanding of South Africa’s exchange control regulations.

Summary

Registration is free and non obligatory, full knowledge of South African exchange control regulations freely available, the best rates and no fees a phone call away.

Contact Incompass today and see just how much money you can save on your money transfers in and out of South Africa.

To find out more about how we can help you with your money transfer to South Africa 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

The South African Reserve Bank is often referred to by its initials SARB. The SARB plays a pivotal role in any money transfer in or out of South Africa via its published Exchange Control regulations.

Although the SARB devolves some of its powers in terms of compliance to Authorised dealers, it is often approached to provide the ultimate decision in terms of the eligibility of a transfer or not.

Incompass Forex deals only with authorised dealers on behalf of its clients, assisting them to obtain the best rates, avoiding all administration costs and providing a superior service levels to those needing to transfer money in or out of South Africa.

Ring us now on + 27 (0) 21 424 2936 during office hours or request call back here.

If you would like more information on the SARB you can visit there website here.

The Reserve Bank of South Africa (SARB) controls foreign exchange by means of the Exchange Control regulations.These Foreign exchange regulations impact on all money transferred in our out of South Africa.

Divesting of Powers

The South African Reserve Bank appoints authorised dealers (mainly banks) who in the main oversee the rules and regulations on their behalf. On occasion the authorised dealer will seek approval or advice from the South African Reserve Bank for an authoritative opinion or decision.

The role of companies like Incompass

The Reserve Bank of South Africa, together with the Financial Services Board regulates and approves currency companies such as Incompass.

The currency company basically acts as an intermediary between the Authorised Dealer and the client (individual or business) that is seeking to transfer money.

Importantly the client can be assured that in dealing with a currency company such as Incompass that they are dealing with a regulated and approved company. In addition at no time will the currency company have receipt of your funds in their account as all transactions are via client accounts at the authorised dealer.

Why use a Incompass

• All transfers of money out of South Africa require The South African Reserve Bank‘s approval and as part of its service, Incompass Forex is able to assist you in obtaining this.
• Due to the fact Incompass focus purely on money transfer we have particular expertise and knowledge with regards to the required permissions.
• Our role as the intermediary means we are able to negotiate better rates with the authorised dealer (bank) than an individual or business normally would.
• Clients benefit from an added layer of service – in our case proven by ISO 9001 and 27001 accreditation.
• Tax clearance and other approvals are absorbed by Incompass so free to the client unless special permissions are required that involve 3rd party fees.
• There are no service fees or hidden extra costs.

Contact Incompass

Whether you are an individual or business, Incompass can probably offer you better rates and increased service levels. Find out more about us by contacting us on + (27) 21 424 2936 or emailing us here.

Rates of exchange, also known as foreign exchange rate or forex rate, are always shown in pairs. For example ZAR/EURO – in essence this shows you how many Euros one South African Rand will buy.

Just a small difference in the rate of exchange can have a significant impact on the amount of currency that actually ends up in your bank account.

For the best rates of exchange and no administration fees, contact Incompass Forex, we are trusted by companies and individuals to look after all their money exchange needs and can provide you with up to date and market beating rates of exchange.

Contact Incompass Forex now on 021 424 2936 during office hours or request call back here.

The advent of the internet has seen access to rates of exchange become accessible to everyone with an internet connection or internet capable cell phone. But beware of the rate of exchange for South African Rand that is quoted online as it may be misleading and cause you to make a decision to effect a money transfer without having the full picture.

Enquire here about Money Transfers to and from South Africa 

What you need to know about about the quoted rate of exchange for South African rand on websites

There are some very important factors (GOLDEN RULES) that need to be taken into account when making any money transfer decision based on a website quoted rate of exchange for South African Rand:

1. Currencies are traded around the clock – 24 hours per day. Even though morning in Tokyo occurs during U.S. night time, trade and banking continue around the world. Therefore, as banks around the world buy and sell currencies, the value of currencies remain in fluctuation. Interest rate adjustments in different countries have the biggest effect on the value of currencies because investors typically look for safe investments with the highest yields. If an investor can earn 8.5% interest on deposits in England, but can pay 1% interest for the use of money in Japan, then the investor would pay to borrow the Japanese yen in order to buy the British pound. Such trades take place all the time and in very large numbers. In laymans terms the rates change by the second but the rate on the website you are viewing may not – it may be an indicative rate not an actual one. It is the rate you trade at not the rate you see that will dictate what ends up in your bank account.
2. What rate are you seeing? Money transfer specialists (forex traders, banks etc) make all or some of their income (profit) from the difference between what they buy at and what they sell at. In other words there is a commercial rate and retail rate – if you are viewing the commercial rate do not expect this to be the rate you trade at.
3. It is the full picture?  An exchange rate in itself does not give you the full picture – are there any commissions, charges or fees, will the receiving bank charge you and are there any hidden costs. As an example imagine buying a new laptop advertised at R 5, 000 and on paying are presented with a bill for R 6, 000. The difference you are told on querying the amount, is the transaction charge. So what looked good on the shelf is not so good at the till. The rate of exchange seen on a website may also have such charges and not look so good when your money ends up in your bank account.
4. Service – of course it still matters and you should always balance the service with the price (exchange rate + any fees). It is not satisfactory for money to take an age to appear in your account, paperwork not to be provided and queries not promptly answered. Don’t be shy to ask questions about the regulator and for references.
5. Knowledge – of particular importance when transferring money in or out of South Africa. We have exchange control regulations in South Africa (very few countries do). ENSURE whoever you are dealing with for your money transfer needs is able to advise you, and help you, with foreign exchange issues such as tax clearances, repatriation of funds and complaints.

Summary

Of course the exchange rate is important, but its not everything! As with every major decision we make you have to take all factors into account and the exchange rate is just one. The question is does your money transfer provider save you money.

Hi Fiona / Stacey,

I received the proceeds into my UAE bank account earlier today, and I am very pleased with the rate which you secured for me. May I just say how professional, friendly and efficient your service has been. And if you are ever in Dubai let me know and I’ll shout you a drink!!! Thank you both very much.

Brgds,

Gareth.

Clients benefit from:

• NO administration fees on your currency transfers.
• The VERY BEST foreign exchange rates.
• ALL tax clearance and Reserve Bank clearances that are required for transferring money.
• EXPERT advice and guidance for all foreign exchange and currency transfers.
• DISCERNING currency exchange service.
• SAFE AND SECURE currency trading.
• FULLY SARS and Reserve Bank compliant money transfer process and procedures.
• CORRECT declaration of funds transferred into South Africa.

Incompass has been providing financial solutions since 2003 with a focus on the international individual or company. Our commitment to providing both innovative and comprehensive currency transfer solutions, has resulted in us becoming one of South Africa’s foremost experts in the field of foreign exchange.

All of our transactions are processed through local banks, that are approved authorised dealers by the South African Reserve Bank. In addition we are an FSCA (Financial Sector Conduct Authority) registered company holding all appropriate licences. Our currency transfers, in and out of South Africa, are done in strict accordance with money laundering regulations and exchange control regulations; and all our transactions are audited in terms of our licence and banking requirements.

To experience better rates, save money and experience a first class service contact Incompass Forex today for all your money transfers, currency exchange and foreign exchange services and advice.

Contact Incompass Forex now on + 27 (0) 21 424 2936 during office hours or request call back here.

Continuing with the trend of the last decade, South Africa has continued to relax exchange control rules.

As a brief reminder South Africa operates a system of exchange control, one of the few countries to still do so. Exchange control is a mechanism for controlling the balance of payments and flight of capital by putting in place restrictions on the export of capital by residents.

The trend of relaxation of exchange control has continued

The annual allowance for individuals has more than doubled from R4 million to R10 million. This sees the allowance for families rises to R20 million per year. The subcategories under the individual single discretionary allowance were also removed and the annual R1 million allowance may be used for any legal purpose abroad.

99% of the population no longer effected

In reality these latest increases in the allowances mean that 99% of South Africans  are no longer effected by exchange control which is good news for those seeking to diversify with exposure to a foreign currency.

Find out more about transferring money out of South Africa

To find out more about how we can help you with your money transfer out of South Africa 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

Do you wish to provide your clients with a first class currency exchange service?

If you have ever tried to effect a transfer in or out of South Africa you will have experienced for yourself how time consuming, complex and expensive this can be. Our new partnership will see your clients receive:

• Personal service
• Expert advice
• Ability to assist individuals and businesses
• All paperwork and clearances obtained and completed on their behalf
• EXCELLENT EXCHANGE RATES
• NO ADMINISTRATION FEES

We are interested in discussing potential partnerships with:

• Accountants
• Attorneys
• Financial Advisors
• Investment houses
• Estate Agents
• Immigration and emigration companies
• Offshore investment brokers
• Shipping and freight companies
• Bond originators
• Tax consultants
• Business Consultants

To learn more and arrange a free and confidential meeting please contact Stuart James on 021 424 2460 or e-mail stuart@incompass.co.za