Sending USD to US

[Flame]

You could technically be taxed on the amount coming back into your bank account.

I'd rather use the 'other foreign investment' code and report and pay the tax on the profit (difference between what went out and comes back in).

ok, good point..rather that then yes

 

[Drifter]

I Also think OP is in for a world of butt hurt. There are set limits on what you are allowed to take out of the country annually. I would get proper advice from a tax attorney 1st.

 

[Flame]

I Also think OP is in for a world of butt hurt. There are set limits on what you are allowed to take out of the country annually. I would get proper advice from a tax attorney 1st.

so bank gave incorrect info?

 

[Drifter]

They gave you the info on what code to use, and which forms. Did you ask them about the legality? See here:

https://www.currenciesdirect.com/ui...EP_emD2yN7mnVyPhqIv2vOBRxLM9DoJRoCh7wQAvD_BwE


Seems like you should be OK, as long as you say it's for investment:

How much money can I take out of South Africa?

There are a number of allowances that allow you to get money out of South Africa and move your rand's abroad, mainly: Annual foreign investment allowance – available to all South African adult citizens or permanent residency holders over the age of 18. The annual limit is R10 million per calender year per person.

 

[silkenphoenixx]

Flagging it as a "gift" could make you liable for donations tax as well.

In and among all the other issues highlighted above.

 

[Arthur]

Flagging it as a "gift" could make you liable for donations tax as well.

In and among all the other issues highlighted above.

And additional penalties up to 200% for making a false declaration. Just tell the truth.

As said a few times, there's no problem sending money abroad for investment. Just declare it as such. To SARB (via your bank's BoP form) and later to SARS when you do your tax return.

 

[silkenphoenixx]

And additional penalties up to 200% for making a false declaration. Just tell the truth.

That also.

As someone not really into the whole bitcoin thing, why can't you just buy bitcoin here and sell it somewhere else? Surely that's part of the whole appeal behind bitcoin?

Why bother going through the whole exchange control thing?

 

[SauRoNZA]

who launder money? i buy bitcoin overseas....

I'm pointing out why SARS might have massive red flags going off.

 

[Flame]

I'm pointing out why SARS might have massive red flags going off.

ok....but they can raise all the flags as they want...i got nothing to hide and will pay all fees i need to pay

 

[ScottulusMaximus]

The receiving party is also going to have great fun explaining sudden, frequent and large deposits into their account from an international destination...

 

[Milano]

Isn't it R1 million per adult per calendar year without tax clearance and R10 million with tax clearance?

 

[SauRoNZA]

ok....but they can raise all the flags as they want...i got nothing to hide and will pay all fees i need to pay

Well if you declare it all then there shouldn't be a problem.

 

[kab123]

HI Arthur

Thanks reply, what amounts u send about and what is the fees about?

And what is a BoP? sorry to ask.

Can this be done with online banking? I bank at FNB atm, but will open a new account at any bank if i must to make it cheapest and user friendly.

PM me ur nr for whatsapp if u dont mind? thx

Open a standard bank account and get Shyft. It is probably the cheapest way to buy Forex.

For ex, is the exchange rate is R13.48, you will be able to buy dollars for about R13.55. There is also no additional admin charges.

 

[Milano]

Heard good things about exchange4free but never used them.

 

[maumau]

That also.

As someone not really into the whole bitcoin thing, why can't you just buy bitcoin here and sell it somewhere else? Surely that's part of the whole appeal behind bitcoin?

Why bother going through the whole exchange control thing?

Think he is into it - check his sig.

 

[prime91]

Y'all don't see that OP is looking to arbitrage on the BTC price. It's an easy 20-30% profit, easy being subject to international money transfer regulations

 

[JayM]

Y'all don't see that OP is looking to arbitrage on the BTC price. It's an easy 20-30% profit, easy being subject to international money transfer regulations

This is exactly what he's doing, and SARS & SARB already know about this trick. There are two problems with doing it:

1) It is in contravention of exchange control regulations (they call it a "loop structure" and it's explicitly not allowed).
2) When they pick it up (and they do eventually, trust me), you will get nailed with marginal tax rate on the amount received in your bank account, without being able to offset the cost of the purchase of the BTC overseas.

So you buy R500K worth of BTC overseas, send it back here and R600K goes into your bank account. Suddenly you're smashed with 45% (or whatever your marginal rate is) on that R600K.

The above is the reason there appears (at first sight) to be an arbitrage opportunity. If there is one, it certainly isn't via your discretionary/foreign investment allowance.

 

[*SynergyX*]

They gave you the info on what code to use, and which forms. Did you ask them about the legality? See here:

https://www.currenciesdirect.com/ui...EP_emD2yN7mnVyPhqIv2vOBRxLM9DoJRoCh7wQAvD_BwE


Seems like you should be OK, as long as you say it's for investment:

How much money can I take out of South Africa?

There are a number of allowances that allow you to get money out of South Africa and move your rand's abroad, mainly: Annual foreign investment allowance – available to all South African adult citizens or permanent residency holders over the age of 18. The annual limit is R10 million per calender year per person.

Please please please ... remember the Annual discretionary allowance is only R1 Million.
Go over this and you will be heavily penalized by SARS.

To increase this to 10 million you need to apply for a FIA at sars. Required documents include 3 years of financials showing assets and liabilities.
http://www.sars.gov.za/ClientSegmen...Pages/Supporting-docs-for-FIA001-for-TCC.aspx

 

[Pho3nix]

This is exactly what he's doing, and SARS & SARB already know about this trick. There are two problems with doing it:

1) It is in contravention of exchange control regulations (they call it a "loop structure" and it's explicitly not allowed).
2) When they pick it up (and they do eventually, trust me), you will get nailed with marginal tax rate on the amount received in your bank account, without being able to offset the cost of the purchase of the BTC overseas.

So you buy R500K worth of BTC overseas, send it back here and R600K goes into your bank account. Suddenly you're smashed with 45% (or whatever your marginal rate is) on that R600K.

The above is the reason there appears (at first sight) to be an arbitrage opportunity. If there is one, it certainly isn't via your discretionary/foreign investment allowance.

Wait a second, wouldn't this be taxed on top of your normal income tax?

 

[kab123]

This is exactly what he's doing, and SARS & SARB already know about this trick. There are two problems with doing it:

1) It is in contravention of exchange control regulations (they call it a "loop structure" and it's explicitly not allowed).
2) When they pick it up (and they do eventually, trust me), you will get nailed with marginal tax rate on the amount received in your bank account, without being able to offset the cost of the purchase of the BTC overseas.

So you buy R500K worth of BTC overseas, send it back here and R600K goes into your bank account. Suddenly you're smashed with 45% (or whatever your marginal rate is) on that R600K.

The above is the reason there appears (at first sight) to be an arbitrage opportunity. If there is one, it certainly isn't via your discretionary/foreign investment allowance.

But what if you buy R500k overseas, sell R500k locally and keep the change in btc?