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Private individuals may invest R4 Million outside of South Africa.
These funds can be invested into offshore investment portfolios, property, bank accounts or other investments.
The R4M Foreign Investment Allowance applies to all taxpayers over the age of 18 years old and represents a total allowance over the lifetime of the applicant.
Please see the guide below for full details on the process and requirements to send funds out of SA using your foreign investment allowance:
FOREIGN INVESTMENT GUIDE
Please complete the following SARB MP1423 Form as per the guide:
Applying for Tax Clearance from South African Revenue Service:
EXCHANGE4FREE CAN OBTAIN A CLIENTS TAX CLEARANCE WITHIN 1-3 DAYS OR FREE!
The first and most important step to transferring these funds out of South Africa is to obtain a Tax Clearance Certificate from the South African Revenue Service (SARS).
A tax clearance application form (FIA001) needs to be completed and submitted to your local SARS office. This can take 3-4 weeks if applying by post and a few hours if you personally go into your SARS tax office with all your documents in order and the form correctly filled out. You will be unable to transfer funds out of South Africa using your foreign investment allowance until you have received this tax clearance.
Clients are able to send less than the amount applied for in the tax clearance and only the actual amount sent out of the country will contribute to your R4 Million total allowance.
Tax clearances are valid for 12 months from the date of issue by SARS.
Please complete the FIA001 form below and submit to your local SARS office. We have also included a basic guide to help you through this process:
FIA001 APPLICATION FORM TAX CLEARANCE GUIDE
Once you have received your tax clearance then all remaining steps can be completed through Exchange4free very quickly and easily. Please contact us immediately once you have received your tax clearance certificate.
In order to assist our clients with applying for a tax clearance certificate through SARS, please see examples below:
FIA001 APPLICATION FORM - EXAMPLE STATEMENT ASSETS AND LIABILITIES - EXAMPLE
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