Share Forum - Discuss JSE shares and join the Investor Challenge

You are permitted to take out R 10 million as a SA resident (that's the physical export of the funds into a foreign country/currency), but you have to get a tax clearance certificate which any local bank will insist on taking a copy of. Also you do not have to repatriate earnings dividends/profits to RSA, which is distinctly different if you go the route of getting your broker to handle the investment - this is always denominated in Rand and it is the broker who places the orders. There are other implications which I am still researching as if you do it through a local broker there are some tax conditions you need to meet. Also if you are a SA resident living overseas make sure you keep your tax number current otherwise you could end up being classified as a non resident and you will have to find a friendly country to take you in - also if you have a passport watch its expiry date as there seems to be a growing insistence that you call on the appropriate department in person to renew your passport and they seem to insist on proof of residency or at very least an affidavit. The simplest part seems to be opening a broker account in London (as I am currently looking into) but one needs to be aware of their tax regime and also what restriction are placed on (me) in terms of how long I need to hold shares for and which point I would have to pay CGT (still checking this out) and where the tax thresholds are and whether I have to apply for a tax number in London
So I would say that there is substantive homework to be done before just rushing off into holding funds in a foreign currency and trading on another bourse
Just my view - use them, lose them

As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.

If Jon lives in SA and is earning some form of income then he would have to get a tax clearance, and chances are he would have a tax number unless income is below the threshold amount of whatever the limit is these days

As jon will be transferring R300K, he does not need a tax clearance nor does he need to have an active tax account.

really? it seems with FNB I would need the tax clearance and a ton of forms

Are you sure about this ? If so will put some pressure on them!

From Cashkows:
 Discretionary Allowance (DA) – R1million per adult, per annum – no tax clearance required
 South African non-residents may use the allowance only in the
calendar year when leaving the country – 18+ years of age. Green barcoded South African ID and
subject to an active SARS tax record.

SARB does not state that at all on their website. It states this:
(ii) In addition, up to R1 million, within the single discretionary allowance facility, can be
transferred abroad, without the requirement to obtain a Tax Clearance Certificate.

There is no need to Formally Emigrate unless you want to remit a RA pension. This is very expensive and time consuming.

I am now sorry that I use FNB as Cashkows are much cheaper as is their exchange rate. Exchange4free are even cheaper.