/ 9 June 2010

What you can take to Perth

Toby asks: If you are emigrating, how much of your assets are you able to take with you?

Maya replies:
The answer is all your assets — at a price.

According to Zorha Deen, exchange-control specialist at FNB, there are various allowances that you qualify for:

  • Your allowance: Each adult is entitled to take R4-million as a foreign capital allowance. This is effectively a conversion of your foreign investment allowance, so if you have already utilised a portion of your foreign investment allowance, your capital allowance will be reduced by this amount.
  • Your capital: You can then apply to take the rest of your assets subject to a 10% levy.
  • Relocation allowance: You also qualify for a discretionary allowance of R750 000 per family member over the age of 12 and R160 000 per child under the age of 12. This is effectively a conversion of the travel allowance and can be used in your relocation costs.
  • Holiday money: If you decide to leave funds in South Africa, they will be moved to a blocked account where only interest can be transferred overseas. You can use these funds for holidays back to South Africa where you can draw up to R75 000 of capital a year at a rate of R3 000 per day.

What you need to know:

  • You will first need to obtain a tax-clearance certificate from Sars and fill in the bank form MP336B, where you will also have to provide your proof of permanent residence in the new country.
  • All your local bank accounts will be closed and you will not be able to use your South African bank cards abroad.
  • The bank will be able to transfer all your funds to your new overseas account.
  • If you return to South Africa within five years you will have to repatriate all your funds.
  • If you have received any donations, you may not be able to include those in the funds you are transferring as this is seen as a loophole for South African residents to use family who are emigrating to take their own funds offshore.

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