/ 28 May 2003

Forex amnesty Act one step closer to law

The Exchange Control Amnesty and Amendment of Taxation Laws Bill was passed by the second house of the South African Parliament, the National Council of Provinces, on Wednesday afternoon.

The law was passed by the National Assembly two weeks ago. It will now go to President Thabo Mbeki for signing into law.

The legislation will provide amnesty for unauthorised funds abroad, with the amnesty period lasting from June 1 this year to the end of November.

It allows for an imposition of a 5% levy, but if South Africans wish to keep their illegally acquired assets abroad they can do so by paying a 10% levy.

The Bill also makes changes to the Transfer Duty Act of 1949. In terms of the budget announcement in February, the threshold is raised from R100 000 to R140 000 for paying no transfer duties on a property while 5% of the value of a property sold is imposed — from R140 000 to R320 000 (the previous threshold being R300 000 rand).

The 8% duty kicks in at over R320 000 rather than at R300 000. This subsection of the Bill will be deemed to have come into operation on March 1 2003 “and shall apply in respect of any property acquired, or interest or restriction in any property renounced in terms of an agreement formally and finally signed on or after that date”. I-Net Bridge