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October 2009 – Excon relaxation announced

Minister Gordhan announced further Excon relation which was duly posted on the Reserve Bank webpage as Circular 13 of 2009.

The foreign capital allowance (FCA of FIA being Foreign Investment Allowance as referred to by SARS) allowing tax compliant SA resident individuals 18 years and older to transfer a once in a life time R2m (2006) into a foreign currency,  has been doubled to R4m (October 2009). The SARS policy document and the FIA001 or FIA 002 application forms to be used,  has not changed.

Residents (natural persons), who are over the age of 18 years may be permitted to avail of a single discretionary allowance within an overall limit of R750 000 (new limit 2009, was R500 000 since 2008) per individual per calendar year, without the requirement to obtain a Tax Clearance Certificate, which may be apportioned as either Donations to Missionaries, Maintenance Transfers,  Monetary Gifts and Loans to South Africans living abroad, Travel Allowance and or Study Allowance.

A further increase in the FDI outward investment limit from R50m to R500m has also been announced.  

Applications below the R500m  limit will be processed by authorised foreign exchange dealers (banks), subject to all existing criteria and reporting obligations.

Read more on Hugo’s webpage – Exit South Africa, which includes a link to circular 13 of 2009

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