South African Tax and Exchange Control “Amnesty”

Period date: From 1st Oct 2016 until 31st March 2017

Currency Assist in association with select South African Tax Advisors are offering a special offer for those making use of the upcoming Tax and Exchange Control “Amnesty”. (We know you are not supposed to call it an “amnesty” but we thought it would make more sense to you than special voluntary disclosure programme or SVDP)

See attached flyer for details of the offer

South African residents both within South Africa as well as those abroad may be affected. Exchange control deems a resident as a South African-born national or SA ID holder, residing abroad.

Unless you formally emigrated, a South African citizen or permanent resident, living outside SA is defined as resident temporarily abroad.

Some points you may want to consider:

  • South Africa and SARS specifically, have entered into several international tax agreements, which will allow SARS to benefit from the post-Automatic Exchange of Information.
  • Persons already subject to SARB or SARS investigations will not be able to make use of the amnesty.
  • The rules will be based on the unauthorised assets, or undeclared income and funds held, as at 29 February 2016.
  • Applications can either be filed online or via a bank.
  • The market value as at 29 February 2016 must be disclosed, as well as the currency applicable. Where required the levy can be paid in USA dollars.
  • Foreign assets must be identifiable, the location must be disclosed, external valuations must be provided.
  • One of three types of levy may be elected by the applicants. The first is a 5% levy on assets brought back to SA. For assets retained abroad, the levy is either 10% or 12%. The higher levy is payable where the actual levy is paid from local funds.
  • The foreign fund levy must be paid to a dedicated bank account, converted at a spot on the date of payment. The 12% local fund levy based on foreign assets, must also be paid within three months.

This opportunity is delivering a clear message that the hiding of foreign assets and the non-declaration of worldwide income is no longer possible.

We suggest you get in touch with us if you have any questions so we can direct you to one of our trusted tax advisors.

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