South Africans are allowed to transfer up to R1 million offshore per calendar year without having to obtain a Foreign Tax Clearance Certificate. This amount is covered by your annual discretionary allowance. The annual discretionary allowance applies to all South African residents over the age of 18 years. Additional transfers up to 10 million rand a year per adult can be done but tax clearances are required. If you don’t use your annual allowance, you will unfortunately lose it.
This time of year, one can expect delays in obtaining tax clearances and this may further be impacted by Covid 19. We would therefore like to remind all our clients to act swiftly if you would still like to benefit from your annual offshore allowance.
If you need any assistance in taking advantage of your 2020 offshore allowance, you are welcome to contact us and we will gladly assist.