Treasury to relax SA exchange control rules further
The government said it would further relax foreign exchange control rules for individuals, making it easier for citizens to invest up to R5m abroad annually. The National Treasury also said it would allow companies to top up capital in their offshore businesses. It relaxed rules for coporations wishing to invest outside their current business lines, fin24 reports.
South Africans could invest more than R5m overseas a year as long as they adhere to "strict criteria" set by Reserve Bank for disclosure. The Treasury said limits for individuals on alimony; wedding and travel allowances would be done away with. In recent years, South Africa has raised the amount of money domestic institutions such as retirement funds are allowed to invest abroad.
"The annual R4m foreign investment allowance plus the R1m current single discretionary allowance will be consolidated into one R5m foreign investment allowance per year," the Treasury said. The changes mark the latest step by the government to move away from stringent controls over foreign exchange flows out of the country. The South African Reserve Bank will release further details within a month, the Treasury said.
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