The gift allowance granted by the South African Reserve Bank forms part of the annual R1M Discretionary Allowance.

Private individuals may utilize the following gift allowances per calendar year:

R 1,000,000 per adult

Please note that there is a 20% tax payable on gift allowances over R100,000 so you are effectively limited to a maximum 'gift' per calendar year of R100,000.

This gift allowance may be used by private individuals currently resident in South Africa to send gifts to non-residents currently living overseas or to South Africans who are temporarily living abroad. The allowance cannot be paid to yourself and needs to be paid to a third party based overseas.

Exchange4free require our clients to sign a declaration stating that you have not utilised your gift allowance through any other financial institution during the current calendar year.