My brother who works overseas wants to send me some money. I am struggling to find out if there is a limit on how much money he can send and if there is a tax implication. From what I have seen, the limits are defined for sending money from South Africa to another country but I cant find what the implications are for receiving. Does anyone know?
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Receiving money from abroad
- Thread starter Mercury12
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crackersa
Honorary Master
Reach out to xoom and see what they say since they transfer a lot of money into SA
DrJohnZoidberg
Honorary Master
I don't think there is a limit. Last time I checked you can receive up to R1mil per year declared as a gift but if the tax man finds out that it wasn't a gift and your brother was using you to move his income from overseas into the country then don't expect them to be too forgiving.
EDIT: But I would consult a tax specialist before taking advice from anyone on a forum.
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With donations/gifts the first R100k is free, anything above that is taxed 20%.
http://www.sars.gov.za/TaxTypes/DonationsTax/Pages/default.aspx
There should be no limitations with getting the money into the country, unless the country he is in has limits on sending cash out.
http://www.sars.gov.za/TaxTypes/DonationsTax/Pages/default.aspx
There should be no limitations with getting the money into the country, unless the country he is in has limits on sending cash out.
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Jola
Honorary Master
SARS has a view about money coming in, they want to be sure that it is not taxable income.
HavocXphere
Honorary Master
Right link, wrong answer.
If his bro is overseas then he's likely no a tax resident in SA. The donor is liable for the tax. So no SA tax
As for how - I use xendpay to send money to my sis
f2wohf
Honorary Master
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Yeah, I totally missed that. Seems very dependant on the country he is sending the money from then. e.g. the UK seems harsh on donations given in the 7 years before someone dies (above £3000 p/a), or if it's affecting the donors quality of life, with a bunch of rules and exemptions in place...
Dave
Honorary Master
It applies to Inheritance tax, and only on estates worth more than £325000, and it still doesn't restrict or prohibit them, it just makes them taxable at a sliding scale from 1 to 7 years from the death of the donor (the tax would also be levied from the estate if applicable, not the recipient).
Here's one explanation:
https://www.savvywoman.co.uk/2011/0...ey-while-youre-alive-understanding-the-rules/
HavocXphere
Honorary Master
It'll have to be a Swift transfer.
Which are a pain & fairly expensive. Hence other solutions being used.
Also...inb4 BTC
Assuming you are in the US because of the $ amount - if you give more than $15k to a person per year, the excess comes off your estate exemption. So if your net worth at death is more than $11m and you're not giving any to charity, you will pay tax then.
Once off transfer of about 300k in rand value (+-$25000). He is sending the money from Hong Kong.
Venomous
Honorary Master
Erm no.
There is a limit. I can't remember what the limit is. But its really low. It has remained unchanged in rands despite the major R/$/£/€ fluctuations for much longer than a decade...
My mom sent money for me to buy a few pressies for other family members. Nedbanks forex person called me. Asked many questions. Turns out that what my mom sent was just R100 to high. They accepted my reasoning but I was cautioned.
The best advice I have is call the bank's incoming forex dept.
A further alturnative is that the OP's brother opens an account overseas and provides card to OP to spend here. Then the brother can transfer into that account the money he wishes to give OP.
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