The Financial Surveillance Department (FinSurv) released an Exchange Control Circular (No. 8/2021) last year which shed more light on this change:
In summary, previously the provision has been that individuals who formally emigrate were allowed to transfer up to R10 million, or R20 million for a family unit, without the requirement for a TCS PIN. Going forward, a TCS PIN would be required from cent 1.
The Limited Relief
It comes as a relief that one can still use their emigration TCS PIN to request for offshore transfers provided SARS approved funds to be externalised under Foreign Investment Capital Allowance. This relief is however ‘limited’ as upon the expiry of the emigration TCS PIN one must now apply for a Foreign Investment Allowance (FIA) TCS PIN for every transfer.
The Sticky Part
It is worth mentioning that it’s not always plain sailing when applying for an FIA TCS PIN. Where funds requested to be transferred are in the excess of R10 million, SARS performs their internal hygiene and completeness checks. The source of funds is reviewed for tax compliance, as well as all entities connected to the taxpayer.
It should be noted that the process to determine whether the application will be approved includes the following as well:
- Perform hygiene check to assess if the taxpayers’ administrative requirements have been met, such as when there are no outstanding returns or monies
- Perform completeness check to assess if the taxpayer poses a tax risk and may have omitted, or incorrectly unaccounted for, activities or transactions
- Review if the source of funds, and related entities, have correctly accounted for taxes due
Our Exclusive Forex Solution
We now have a lasting solution for the forex woes expats face. We are offering exclusive forex transfer accounts through Investec. The accounts come as a Non-Resident Forex Account, Resident Forex Account or Temporary Resident Forex Account depending on your Residency status. The accounts are tailored for forex transfers and can be opened and closed remotely without any hassles. The account come with competitive exchange rates and most importantly a convenient and easy to use platform.
We understand the challenges for those working abroad or in the process of doing a financial emigration. The slightest delay or legislative change can quickly become a costly exercise, which defeats the purpose of your work engagement or emigration. We are there to guide expats through this procedure and make it as seamless as possible.