Every South African resident over the age of 18 has a discretionary investment allowance of R1m per calendar year. In addition, you are allowed to take a further R10m offshore for foreign investment purposes – but you will need to apply and obtain a Tax Clearance Certificate.

As these foreign investment allowances are set per calendar year, you need to keep records of any amounts that you take offshore every year.  Unused portions of these allowances are not carried over to the next calendar year, and investors who are keen to make foreign investments may forfeit an opportunity to get more funds abroad if they don’t utilise their full allowance annually.

With the end of the year in sight, it may be a good time to get the administration in order for your tax clearance certificate – it remains valid for 12 months.  If you are considering taking monies offshore, we can help with the application process and the underlying investments. Foundation Family Wealth is highly experienced in taking funds abroad and we will ensure that process is easy and without hassle.