The SA Reserve Bank has recently announced that SA resident individuals may use their single discretionary allowance (R1m per calendar year) for foreign investment purposes without having to obtain a tax clearance certificate.
Previously, the said allowance covered the following :
- Donations to missionaries
- Maintenance transfers
- Monetary gifts and loans
- Travel allowance
- Study allowance
- Alimony and child support payments
- Wedding expenses and other special occasions
The position has now been broadened and foreign investments are included in the list of transactions.
Please note that if an individual makes use of the R1m Single Discretionary Allowance for a foreign investment no further funds will be accorded to the individual for the remainder of the calendar year for Travel,Study,etc.
The requirements for the transfer of the annual foreign investment allowance of R4m remain the same.
This change takes place with immediate effect.
