Belinda Beresford
While there still may be some international scepticism about South Africa’s future, Trevor Manuel has signalled the government’s confidence by a further relaxation of exchange controls.
Those unbelievers wanting to leave the country have been given a goodbye present – they can now take up to R1-million of household and personal effects. If you’d like to send your money overseas, the personal investment limit has been doubled to R400 000 per person, or R800 000 per household.
The changes in the budget mean 99,5% of people are now free from the “yoke of exchange control”, according to the finance minister.
The bad news for the opportunists among us is that you’ll have to get a certified clean bill of health from the taxman, rather than simply signing a declaration of good standing, as at present.
Between last July, when the exchange controls on individuals were relaxed, and the end of the year, only 4 815 people applied to invest R610-million overseas. But, just less than 17% of these would-be investors were not registered, or did not have their tax affairs in good standing. Rather ominously, the budget review says they are “being followed up” by the revenue service.
Travel and study allowances have also increased. Each adult can now take up to R100 000 on holiday per year, up from R80 000, while children can take saved pocket money to the tune of R30 000 instead of R25 000.
There has been a R20 000 increase in the overseas study allowance to R100 000, while student travel allowances have increased to R30 000 per year from R20 000. Students accompanied by spouses have double the allowance. If you’re travelling abroad you no longer have to get pre-authorisation to use your credit card, although you will still have to obey the travel allowances.
The government has also continued its policy of strengthening ties to the Southern African Development Community. Local companies can now transfer up to R250-million for new investments within the community – a five-fold increase. The offshore investment allowance for companies has risen to R50-million.