October 13, 2024
2024 Annual Allowances Deadline
We thought you would appreciate a reminder that your annual allowances will expire soon on 31 December.
Annual allowances explained
At the start of each new calendar year, South African residents may avail themselves of new annual allowances granted by the SARB under Exchange Control regulations. These allowances expire at the end of each calendar year on 31 December.
We’ve put together an overview of these for you below:
1. R1 million Single Discretionary Allowance (SDA)
South African resident individuals are granted an annual Single Discretionary Allowance (SDA) of R1 million per calendar year by the SARB, to externalise funds for any legal purpose. The SDA does not require foreign tax clearance (AIT) from SARS. The annual R1 million Single Discretionary Allowance applies to all South African residents over the age of 18 who hold a green bar-coded ID book or the new ID card.
2. R10 million Foreign Capital Allowance (FCA)
In addition to the SDA, South African resident individuals can also avail themselves of a Foreign Capital Allowance (FCA) of up to R10 million per calendar year. Unlike the SDA, the FCA requires foreign tax clearance (aka an AIT or Approval for International Transfer) from SARS.
Your tax clearance is valid for a year from date of approval, but allowances are valid for the calendar year. To utilise your annual allowances in full, we recommend transacting any balance on your allowances before the end of the current calendar year.
3. Special Approval Applications
Want to transfer more than your annual allowances?
No problem, we can apply for approval from the SARB on your behalf to make this possible.
Did you know?
If you would like to apply for foreign tax clearance, please contact us as soon as possible. We would encourage you to apply sooner rather than later to avoid the inevitable year-end delays at SARS so you can transact before 31 December. This will also put you in a position to complete a currency transfer quickly for the next 12 months, so you don’t miss out on a favourable exchange rate.
Our tax specialists will handle your application as a complimentary benefit of our currency transfer service and as South Africa’s biggest specialist foreign exchange provider for individuals, Currency Partners can give you access to the best pricing and service available in the market.
Please contact us on +27 21 203 0081 or email enquiries@currencypartners.co.za for more information and assistance.
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