WEDNESDAY, 5.30PM
The finance department on Wednesday made its long-awaited announcement on individual investments abroad, in which it said SA taxpayers will be allowed to invest R200 000 abroad without restriction from July 1.
“The amount may be dealt with in any manner that the investor deems fit,” the department said in a statement. The move forms part of the government’s programme to relax exchange controls gradually.
“We have put in place a mechanism whereby individuals who are registered taxpayers in good standing over the age of 18 will be allowed to apply to an authorised dealer in foreign exchange to invest an initial amount abroad,” the statement said. “This initial allowance will be R200000. This may be held offshore or alternatively held in foreign currency deposits with domestic foreign exchange dealers.”
“Furthermore, to give effect to the undertaking that South African private individuals would be allowed to freely transact internationally, income accruing to them from foreign sources after July 2 may be retained abroad,” the statement added.
The department said it trusts the new measures will boost domestic and international confidence in the South African economy and lay the foundation for the further liberalisation of exchange controls.