The Reserve Bank has issued nine draft circulars for public comment which give effect to announcements made in the Budget Review tabled in parliament last month.
The circulars primarily address increased new limits for cross-border payments and investments by individuals in South Africa, as well as streamline some administrative processes. The deadline for public comment is March 17.
The review said that to take account of inflation and currency fluctuations, the single discretionary allowance limit for private individuals to take or transfer money abroad is increased from R1m to R2m per calendar year via authorised dealers for all purposes, including travel, gifts, remittances, investments and donations.
The limit for resident individuals who are under the age of 18 years for a travel allowance is increased from R200,000 per calendar year to R400,000.
The transfer of domestic listed securities abroad, up to a total market value of R2m per calendar year, will be allowed on conditions, and private individuals will be allowed to take up new shares in foreign companies that have accrued by way of rights on existing holdings of shares, provided transfers in payment thereof are dealt with in terms of the R10m foreign capital allowance and/or the R2m single discretionary allowance.
The limit for miscellaneous imports, services or subscription payments (for example, imports over the internet, services or subscriptions), made via credit or debit cards, will be increased from R50,000 to R100,000 per transaction.
“Any singular transaction exceeding R100,000 may not be split to circumvent the limit applicable to this dispensation,” the Reserve Bank’s circular said.
To reduce red tape, the limit for miscellaneous payments to non-residents, for example, for sponsorships, office and warehouse expenses, demurrage or refunds, is increased from R100,000 to R200,000 per transaction.
Any singular transaction exceeding R100,000 may not be split to circumvent the limit applicable to this dispensation.
— Reserve Bank’s circular
The National Treasury also announced changes to the limits on bank notes that can be carried in cash when entering or exiting South Africa from R25,000 to R100,000.
“Currently, South African resident individuals, including foreign nationals, nonresidents and visitors, are permitted to export up to R25,000 in notes when leaving South Africa. This allowance for residents and foreign nationals is in addition to the normal travel allowance. The limit of R25,000 therein is increased to R100,000,” the Reserve Bank circular said.
Among the measures to reduce red tape is that authorised dealers will be allowed to renew authorities previously granted by the Reserve Bank for local settlement in foreign currency provided there are no material changes in the circumstances under which the original approval was granted.
The time lag for residents entering into cross-border merchanting transactions will be aligned to four months irrespective of the jurisdiction of the foreign payer.
“The Reserve Bank working with the South African Revenue Service and the Financial Intelligence Centre will enhance supervisory oversight to ensure anti-money laundering and countering the financing of terrorism and tax infringements do not occur,” the Budget Review stated.
The Reserve Bank said the National Treasury would publish updated draft regulations for public comment to enable the implementation of the capital flow management framework and later the crypto asset framework for cross-border activities.
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