24. Miscellaneous Payments

Business entities may apply to an Authorised Dealer to remit abroad payments as mentioned below against the production of documentary evidence confirming the amounts involved.

24.1 Advertising, exhibition, sponsorship and trade fair expenses

Advertising and exhibition fees, inclusive of sponsorship fees, in respect of participation in trade fairs outside the CMA.

24.2 Charges for repairs and adjustments to goods temporarily exported

Manufactured goods registered with Customs for re-exporting to their country of origin for repairs or adjustments.

24.3 Charges in connection with legal disputes

Legal fees, court costs and upfront deposits for legal work incurred outside the CMA.

24.4 Insurance and road accident fund claims due to non-residents

Claims payable to non-residents as a result of injury, loss or damages suffered while visiting South Africa.

24.5 Court judgment payments

Payments due to non-residents in terms of or as a result of any judgment granted by a court in South Africa.

24.6 Examination fee payments

Examination fees payable to schools, universities or similar educational institutions or examining bodies abroad whose exams are being held in South Africa.

24.7 Medical expenses

Medical examination expenses in respect of prospective contract workers and immigrants, provided that the account from the non-resident medical practitioner, addressed to the resident corporate entity, is submitted in support of the request.

24.8 Refunds

(a) Refunds paid by SARS are transferable.

(b) Pension payments that have been received from outside the CMA after the demise of a resident beneficiary.

(c) Refunds in respect of orders, tour reservations, registration fees, erroneous payments and overpayments by non-residents.

(d) Any other refunds not exceeding a total value of R100,000 per calendar year due to non-residents involving related parties.

24.9 Registration of drugs

Fees due by pharmaceutical companies registered in South Africa in respect of the registration of drugs outside the CMA.

24.10 Rental and lease payments

Rental and lease payments in respect of capital goods utilised inside or outside South Africa to fulfil any contractual obligations.

24.11 Sport events

Entrance fees for participation in international sporting events

24.12 Subscriptions

(a) Current membership and affiliation fees to recognised medical, engineering and other technical, learned or international societies.

(b) Club subscriptions.

(c) Current subscriptions for international business or technical information services, supplied via data or telephone lines to visual display units and printers.

24.13 Technical service payments

Fees, including reimbursements of air fares to CMA countries, due in respect of non-residents brought to South Africa for the specific purpose of installing or repairing specialised machinery and equipment, or for commissioning and supervising the installation thereof, as well as training local personnel in this regard.

24.14 Tender documentation

Fees payable to acquire tender documentation in order to tender for contracts outside the CMA.

24.15 Transportation costs and cash floats

Ship disbursements, landing fees, fuel costs, emergency repair costs, toll fees and other fees related to the transport of goods.

In cases where a business entity must effect these payments on a regular basis in cash to non-residents or on behalf of non-residents, a cash float in foreign currency not exceeding the equivalent of R100,000 may be accorded by an Authorised Dealer. The cash float may be replenished against the presentation of documentary evidence confirming the utilisation of foreign currency from the cash float for these purposes.

Business entities may make advance payments via an Authorised Dealers in foreign currency not exceeding the limit mentioned above to non-resident petroleum and concession companies where cards will be issued to allow for payment of petrol and toll fees respectively. The accounts may be replenished against the representation of documentary evidence confirming the purposes for which the funds were utilised.

24.16 Registration of agrochemical products

Registration fees in respect of agrochemical products registered outside the CMA.

24.17 Visiting artistes, entertainers, sportsmen and other similar professionals

The net earnings of foreign artistes, entertainers, sportsmen and other similar professionals engaged by residents may on departure be transferred abroad by Authorised Dealers, provided that they view documentary evidence from SARS confirming that all tax commitments have been met.

Where a contract requires that an upfront or advance payment be transferred prior to completion of the non-resident’s contractual obligations, such payment may only be credited to an Escrow account and may only be released proportionately after the completion of each performance.

24.18 Foreign contract payments

Business entities are permitted to pay expenses such as salaries, accommodation costs incurred abroad by residents as a result of their foreign contractual obligations. A copy of the relevant foreign contract must be presented to an Authorised Dealer.

24.19 Conference, congress and seminar fees

Business entities are permitted to pay conference, congress and seminar fees (including ad hoc short-term courses presented at foreign entities) to non-residents in respect of local or international events, provided that documentary evidence from the foreign beneficiary is submitted to an Authorised Dealer.

24.20 Employment contracts involving non-residents

Business entities that are required to transfer funds abroad in respect of employment contracts involving non-residents employed in and outside of South Africa may approach an Authorised Dealer to allow such payments.

24.21 Commission and/or brokerage on investments introduced into South Africa from abroad

Fees in respect of investments introduced into South Africa from abroad are permissible, provided that the business entity confirms in writing that the rate at which such payments are calculated is market related.

24.22 Mould payments

(i) Payments in respect of the design and/or manufacturing of moulds not exceeding R100,000. A copy of the underlying agreement must be viewed and the Authorised Dealer should, prior to effecting the payment, be satisfied that:

(a) the mould is manufactured by the foreign supplier;

(b) it is only for a once-of design and manufacturing of the mould; and

(c) the mould is required to manufacture goods to be imported by the applicant.

24.23 Miscellaneous payments

Miscellaneous payments within a limit of R100,000 per transaction via an Authorised Dealer to non-residents, not specifically dealt with elsewhere in this document, may be effected. Suitable documentary evidence must be presented to an Authorised Dealer substantiating the amount and nature of the liability.