Threshold Changes effective 1 April 2015


The South African Reserve Bank has announced the following Threshold Changes effective 1 April 2015 which are applicable to all South African residents:

Changes applicable to individuals

  • South African residents foreign capital allowance will increase from R4 million to R10 Million per annum or upon emigration, or R20 Million per family unit on emigration. A Tax Clearance Certificate is required to make use of these allowances.
  • The sub-categories under the individual Single Discretionary Allowance are removed and the annual R1 million allowance may be used for any legal purpose abroad.

Changes applicable to corporates

  • Corporate Investments are increased from R500 million to R1 billion per annum. Unused allowances for corporates may be carried forward to the following year.
  • Miscellaneous payments for imports, services and subscriptions by means of debit and credit cards

    -The dispensation for credit card usage which was limited to individuals is now extended to corporates.
    -This allows for small imports, services, and subscriptions of R50 000 per transcaction to be paid by means of card, as opposed to other payment methods.

    Note: This dispensation does not absolve corporates from ad valorem excise and custom duties or from complying with the requirements imposed by Customs.
 
Bidvest Bank Limited is a licensed financial services and registered credit provider. We are available to assist with all enquiries relating to the above allowances.
 
As foreign exchange specialists, we are also able to facilitate documentation and offshore payments on behalf of customers wishing to take advantage of the above allowances.
 
Contact your Private Banker, visit the Bidvest Bank website or your nearest Bidvest Bank branch for assistance.