The distinction between the setting-in allowance and private individual allowance has fallen away.
Emigrants can, on application, request to transfer blocked assets in excess of the limit of R4 million per family unit or R2 million per single person, subject to an existing schedule, at the discretion of the Exchange Control Department of the South African Reserve Bank, and an exit charge of 10% of the amount. Persons who have emigrated, but have not fully utilised the current authorised foreign capital allowance, may be accorded additional capital transfers, provided the amount availed of does not exceed the current limits.
A single discretionary allowance of R 1000 000 granted per individual for maintenance, gifts, travel and study.
Travel Allowances for visits outside the Common Monetary Area (CMA) :
Adults - the travel allowance forms part of the discretionary allowance referred to above.
Persons under the age of 18 - R200 000 per calendar year.
Travel facilities may be provided by way of travelers cheques, foreign bank notes and credit/debit cards. Travel facilities not availed of during one calendar year may not be carried forward to the following year. Travelers proceeding on visits outside the CMA are permitted to export up to R5000 per person in SA Reserve Bank notes. This is not regarded as being part of the travel allowance.
Common monetary area residents travelling to and from Namibia may be provided with Botswana Pula to an amount of R5 000 per annum over the above limits.
Current income earned on blocked assets may be transferred to the emigrant's new residence through normal banking channels. Income includes: interest, director's fees, monthly pension payments, retirement annuity payments (specific approval required), the income portion only of a voluntary annuity.
Maintenance payments to family members (mothers, fathers, sisters, brothers) of up to R9 000 per month are allowed on the production of certified documentary evidence proving need and the relationship.
An amount of R9 000 more than the amount of the court order is allowed.
Inheritances bequeathed to non-residents are freely transferable.
Residents may send gifts of money to the value of R30 000 per year to non-residents.
Up to R5 000 in cash may be taken in Rand notes when departing from the Republic, in addition to travel allowance.
Credit card payment can be made for offshore purchases up to R20 000 per transaction.
Exchange control limits on new outward foreign direct investments by South African corporates are abolished. Requests by corporates to invest overseas are considered in the light of the national interest. Application to the Reserve Bank's Exchange Control department is still required for monitoring purposes and for approval in terms of existing foreign direct investment criteria, including demonstrated benefit to South Africa. The South African Reserve Bank reserves the right to stagger capital outflows relating to very large foreign investments so as to manage any potential impact on the foreign exchange market.
South Africa corporates will be able to retain foreign dividends offshore. Foreign dividends repatriated to South Africa after 26 October 2004 may be transferred offshore again at any time for any purpose.
Foreign companies, governments and institutions may list on South Africa's bond and securities exchanges, (South African private individuals will now be able to invest, without restriction, in inward listed instruments on South African exchanges.)
As an interim step towards prudential regulation, retirement funds, long-term insurers, collective investment scheme management companies and investment managers are allowed to transfer funds from South Africa for investment abroad.
The exchange control limit on foreign portfolio investment by institutional investors applies to an institution's total retail assets.
The foreign exposure of retail assets may not exceed 15% in the case of retirement funds, long-term insurers and 25% in the case of collective investment scheme management companies and investment managers registered as institutional investors for exchange control purposes.
Institutional investors will on application, be allowed to invest an additional 5% of their total retail assets by acquiring foreign currency denominated portfolio assets in Africa through foreign currency transfers from South Africa or by acquiring inward listed securities.
On arrival, immigrants must notify their bank of their foreign assets and undertake not to dispose of these to residents.
Within 5 Years of immigration, an immigrant may freely transfer from SA all assets brought into the country.
After 5 Years, the same rules which are applicable to SA residents apply to that person.
Non-residents may freely invest in or disinvest from SA
Non-residents have unrestricted rights to invest in gilts and shares listed on the JSE and export the proceeds on the sale thereof. Interest and dividends are also freely remittable. Loans by non-residents to SA individuals/entities require prior Exchange Control approval.
Where certain assets such as unlisted shares, fixed property or businesses are transferred between non-residents and residents, the value of the asset must be verified by a commercial bank.
Ex con approval is required for the remittance of certain income such as royalties and certain dividends