Latest exchange control developments for residents temporarily abroad
15 December 2015
South African residents have in recent years benefitted from a number of changes to exchange control policies. The relaxation in exchange control policy currently allows residents temporarily abroad to utilise their ZAR10 million foreign capital allowance without any recourse to South Africa against the production of the relevant Tax Clearance Certificate.
Gifts and loans may be sent to residents temporarily abroad, excluding those residents who are abroad on holiday or business travel, as part of one's single discretionary allowance per calendar year.
Most recently, on 9 December 2015, further amendments have been made. Residents temporarily abroad now also qualify to:
- utilise a ZAR1 million single discretionary allowance per calendar year without having to return to South Africa;
- use local debit and/or credit cards within the single discretionary limit of ZAR1 million per applicant during a calendar year;
- receive pensions and retirement annuities abroad.
Although restrictions have been relaxed over the years, it still remains important to satisfy the applicable exchange control regulations relating to the particular foreign exchange transactions and advice should be sought prior to entering into the transaction.