Want to Move Money Offshore? Here's What You Should Know

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With the rand trading around R17.30 to the dollar, many South Africans are considering moving money offshore. But before your clients hit “transfer,” there are a few key rules to remember, especially when it comes to SARS. Nicholas Botha from Tax Consulting SA explained the key considerations in a podcast to Moneyweb.

The Rules You Need to Know

• Up to R1 million can be moved offshore every calendar year using the Single Discretionary Allowance (SDA). You do not need SARS clearance for this.

• Between R1 million and R10 million you’ll need a Tax Compliance Status (TCS) pin from SARS. The process involves paperwork, but if your tax affairs are in order, it’s mostly red tape, not a blocker.

  📌NOTE: Plan ahead. Clearance is valid for 12 months, so clients can apply now and transfer later, there’s no rush once approved.

• Over R10 million you’ll need SARS and Reserve Bank approval. It’s possible, but the paperwork gets heavier, and clients must prove where the money came from and that taxes are paid.

In summary

If everything’s declared and compliant, there’s no reason SARS will stop the transfer, it’s just a matter of proper process. If you can justify the source of the funds and you are tax compliant you will be able to get approved.

Source: Moneyweb Podcast