Fin24

SA relaxes more exchange control rules

2011-10-27 16:40

Johannesburg - The government said on Thursday it would further relax foreign exchange control rules for individuals, making it easier for citizens to invest up to R5m abroad annually.

The National Treasury also said it would allow companies to top up capital in their offshore businesses, and relaxed rules for coporations that want to invest outside their current business lines.

The changes mark the latest step by the government to move away from stringent controls over foreign exchange flows out of the country.

“The annual R4m foreign investment allowance plus the R1m current single discretionary allowance will be consolidated into one R5m foreign investment allowance per year,” the Treasury said.
 
South Africans could invest more than R5m overseas a year as long as they adhere to “strict criteria” set by Reserve Bank for disclosure.

The Treasury said limits for individuals on alimony, wedding and travel allowances would be done away with.

In recent years, South Africa has raised the amount of money domestic institutions such as retirement funds are allowed to invest abroad.
 
The South African Reserve Bank will release further details within a month, the Treasury said.

Comments
  • pawsaw - 2011-10-28 14:42

    Ha ha. This is funny since my name stands for previously advantaged white sa woman. I was advantaged because I was white. If I had R5million to invest annually in a foreign country I would long since have done so. If only!!! My father died under appalling conditions in a State hospital as did my domestics husband who was only 47 and died of a burst appendix which could have been prevented! The only people with access to these kinds of mnoney are the ANC fatcats who are all bursting out of their clothes and having lavish weddings and trips etc so that they don't break the law such as it is. Even if I sold my house in a middle income suburb with all its contents I would not have enough money to stash away because it costs me so much to live while Juju walk rides to Pta in protest spewing lies about where all our tax moneys are going.

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