Exchange Control Circular No. 11/2021

Circular Reference: Exchange Control Circular No. 11/2021

Circular Date: 21 May 2021

Circular Status: Pending

Insurance – pension and provident schemes

The following amendments to the Currency and Exchanges Manual for Authorised Dealers (Manual) are outlined:

Section B.10(J)(ii)

A new paragraph has been added as follows:

(e) Individuals who ceased to be residents for tax purposes in South Africa
(aa) Requests by individuals who ceased to be residents for tax purposes in South Africa on or after 2021-03-01 to withdraw from their pension preservation, provident preservation and retirement annuity funds shall only be considered by SARS where the person concerned has been non-tax resident for at least three consecutive years.
(bb) In respect of the aforementioned, the provisions of section B.2(B)(J) must be adhered to.
(cc) Authorised Dealers may allow the transfer of monthly pension and/or annuity payments paid by registered funds only. In this regard, Authorised Dealers must require a TCS of good standing at least once a year, which must be verified by the Authorised Dealers to confirm that the taxpayer is tax compliant.

The amended Manual as well as guideline document for individuals may be accessed on the South African Reserve Bank website: www.resbank.co.za by following the links: Home > What we do > Financial Surveillance > Financial Surveillance Documents.

Head of Department: Financial Surveillance

View the Circular

Scroll to Top