3.6. Foreign capital allowance (South African Resident Individuals)

3.6.1
A foreign capital allowance may be availed of through an Authorised Dealer, which may be transferred to a foreign currency account with a local Authorised Dealer or invested abroad, within a limit of R10 million per calendar year per individual, subject to a TCS PIN verifying the taxpayer’s tax compliance status and green bar-coded South African identity document or Smart identity document card and is 18 years and older.

3.6.2
The funds to be transferred must be converted to foreign currency by an Authorised Dealer.

3.6.3
The Financial Surveillance Department will consider applications by private individuals via an Authorised Dealer to invest in different asset classes offshore in addition to the abovementioned allowance. Private individuals wishing to avail of this dispensation must first approach SARS to obtain a TCS PIN verifying their tax compliance status report, which must accompany their application to the Financial Surveillance Department for consideration.

3.6.4
Private individuals may, as part of their single discretionary allowance and/or foreign capital allowance, export multi-listed domestic securities to a foreign securities register in a jurisdiction where such securities are listed, subject to tax compliance and reporting to the Financial Surveillance Department via a Central Securities Depository Participant, in conjunction with an Authorised Dealer.

3.6.5
Private individuals may only fund online international trading accounts at registered brokers in terms of the single discretionary and/or foreign capital allowance, i.e. the Authorised Dealer concerned must convert the Rand into foreign currency and transfer such funds via the banking system as an Electronic Funds Transfer to a foreign bank account or the funds can be deposited in a foreign currency account at an Authorised Dealer. No South African debit, credit and virtual card may, however, be used to fund a foreign currency account at an Authorised Dealer or a bank abroad, nor may international trading accounts of private individuals be funded using South African credit, debit and virtual card transfers. Online international trading accounts, inter alia include trading global currencies against each other, trading a contract for difference, trading in foreign stocks, trading commodities including crypto currencies and/or trading foreign indices using an online trading platform of the broker concerned.