You Personally
Offshore Investment
What has changed?
The foreign capital allowance that a private individual may remit offshore has increased from R 2 Million to R 4 Million.
What this means and how Standard Bank can assist you. . . read more
As a South African individual, you can now take R4 million offshore as part of your allowance. In order to make use of this allowance, individuals need to approach the South African Revenue Services (SARS) to obtain a tax clearance certificate. With this tax clearance, individuals can visit any forex branch or bureau de change to arrange for the transfer of the funds internationally.
How can Standard Bank assist?
- Standard Bank has a full service offshore team that can assist you
in identifying investment opportunities that suit your individual needs. Read more about this service by visiting our Offshore site.
- Standard Bank has foreign exchange branches conveniently
located around the country. Use our branch locator to find your nearest branch.
- Standard Bank can assist you in sourcing and hedging your currency. As an individual you can make use of currency futures as
a way to protect yourself against adverse movements in the exchange rate while you are obtaining your necessary clearances. Read more about currency futures as well as how else we can provide assistance for your foreign exchange needs. Visit www.standardbank.co.za/fxrates.
Emigration
What has changed?
In line with the foreign capital allowance having been increased the foreign capital allowance per emigrating family unit has increased from R 4 Million to
R 8 Million.
What this means and how Standard Bank can assist you. . . read more
If you are formally emigrating, the capital allowance applicable to you and your family has increased in line with the increase in the foreign capital allowance. This means that as a family unit you are restricted to taking R8 million out the country when you are emigrating.
Did you know that if you are emigrating, the funds that are in excess of the allowable funds will remain in South Africa in the form of blocked assets.
These funds can be invested in various products so as to protect and grow your funds.
Should you wish to take out funds over and above your emigration limit, you can do so subject to a 10% penalty and SA Reserve Bank approval.
How can Standard Bank assist?
Standard Bank has non resident centres which are conveniently located in all major centres. These non resident centres are staffed by experienced professionals who can assist you with the emigration process. To learn more about these centres and there services click here and contact the centre in closest proximity to you.
Discretionary Allowance
What has changed?
The single discretionary allowance (for use by a SA resident for travel, study, and maintenance, donations to missionaries, monetary gifts and loans) has been increased from R 500,000 to R 750,000 per individual over the age of 18 per calendar year. This allowance may not be used for any purpose other than that for which the funds are requested.
What this means and how Standard Bank can assist you. . . read more
As an individual you have the ability to make use of a discretionary allowance to pay for things such as your travel, donations, study allowances.
This allowance has increased to R750 000
How can Standard Bank assist?
- Standard Bank has foreign exchange branches conveniently located around the country. Use our branch locator to find your nearest branch.
- Standard Bank can assist you in sourcing and hedging your currency.
As an individual you can make use of currency futures as a way to protect yourself against adverse movements in the exchange rate while you are obtaining your necessary clearances. Read more about currency futures as well as how else we can provide assistance for your foreign exchange needs. Visit www.standardbank.co.za/fxrates.
Your Business
Advance Payments
What has changed?
The limit of R 250,000 for advance payments has been done away with. Authorised Dealers may provide foreign exchange in respect of advance payments and/or cash with order requests to cover the cost of permissible imports, other than capital goods, against the presentation of an invoice stating that payment must be made in advance.
What this means and how Standard Bank can assist you. . . read more
As a company you have previously been restricted in terms of the amount that you are permitted to pay in advance for your import payments. With the Medium Term Budget Speech this amount has been done away with, so there is therefore no restriction in terms of the amount of money that can
be paid in advance.
It is very important to note though:
- Your invoice needs to clearly state the amount that needs to be paid in advance
- The restriction for imports that will be used as capital goods by the importer is still restricted to 33.33% of the value of the import
- Once the original documentation is received, this still needs to be presented at the bank so as to have the exchange provided.
- The amount that is paid in the form of an advance payment will still be subject to the banks anti-money laundering policies and could be subject to a review of the transaction
How can Standard Bank assist?
- Standard Bank's representation in emerging markets globally and strong relationships with international correspondent banks in all major markets positions us well to provide superior trade services
to meet our clients' cross-border trade requirements. We have set
up dedicated Foreign Trade Services around the country with skilled staff that can assist you in every part of your foreign transaction.
To read more about this offering as well as all our international payment capabilities and value added services, click here.
- Standard Bank can assist you in sourcing and hedging your currency.
As a company, any movements in the currency can significantly impact the amount you pay for your transaction. There are many products available which can assist you in managing this risk. To learn more about these products as well as contact details for our specialist, visit www.standardbank.co.za/fxrates .
Customer Foreign Currency (CFC) Accounts
What has changed?
The 180 day rule regarding the conversion of funds held in a Customer Foreign Currency (CFC) account has been abolished. This implies that those South African entities (legal persons) operating CFC accounts are now permitted to retain funds in their CFC accounts without the obligation to convert the funds into Rand. .
What this means and how Standard Bank can assist you. . . read more
As a company operating a CFC account, you were previously restricted to only hold the foreign currency you received from export proceeds for a maximum period of 180 days. Any balances that were kept in this account for greater than 180 days were converted as a result of the exchange control ruling.
What this new ruling entails is that there is now no restriction in terms of
the time that these funds are permitted to remain in the CFC accounts.
Things to remember:
- These accounts receive interest referencing offshore interbank interest rates (LIBOR). This interest would be calculated as LIBOR less certain percentage points depending on the balance on the account.
- The current repatriation requirement remains in that any legal person that received foreign currency needs to ensure that it is returned to South Africa and converted into Rand with one of the Authorised Dealers or credited to a CFC account within 30 days of becoming entitled to the funds.
How can Standard Bank assist?
- Standard Bank's representation in emerging markets globally and strong relationships with international correspondent banks in all major markets positions us well to provide superior trade services
to meet our clients' cross-border trade requirements. We have set
up dedicated Foreign Trade Services around the country with skilled staff that can assist you in every part of your foreign transaction.
To read more about this offering as well as all our international payment capabilities and value added services, click here.
- As a leading player in the electronic banking segment Standard Bank offers you electronic banking capabilities to manage your
CFC accounts. This includes the ability to transact electronically in the form of outward and inward payments, transfer between accounts as well as being able to view balances and draw statements on your account. To learn more about our broader electronic banking offering, click here