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Author Topic: Money transfers with PR while still in SA  (Read 4193 times)

tandl

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Money transfers with PR while still in SA
« on: February 05, 2008, 11:35:33 am »
Ok, considering the fact that I am not very bright when it comes to money matters, can anyone spell it all out for me? Im only concerned with what to do when you have PR and you dont want to emigrate officially.  What do we tell the bank?

Please dont post links to other threads, I would just like to hear from those who have actually done/researched the whole thing because I think I am getting confused between people who are going over without PR/WTR.

This is how I understand it so far - somebody please correct me if I am off the wagon  :whistle:
1.  We need to open bank accounts in NZ from here - seems easy enough - send passports etc etc
2.  We need IRD numbers so that we are taxed less on our money in that NZ account.  Can we get the IRD numbers while still in SA?
3.  NRWT/RWT - OK, we have PR but we do not live in NZ yet.... WHICH one applies?
4.  We need to get Tax Clearance so that we can send money over to the NZ account.
5.  We are sending over a "holiday allowance" according to the bank.  Is it ok that we are sending money to our OWN bank account in NZ or is that a problem?
6.  If we are sending a holiday allowance, do we need to have booked our plane tickets first??

I know I could have this all wrong but then please help me  :help: to understand...

My head is spinning with all this stuff already...  :uglystupid2:




Offline Carla P

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Re: Money transfers with PR while still in SA
« Reply #1 on: February 05, 2008, 04:07:17 pm »
Hi Tandl,

Thanks for asking all the questions, as I also had some of the same ones.

Carla

SA Going to NZ Advice Forum

Re: Money transfers with PR while still in SA
« Reply #1 on: February 05, 2008, 04:07:17 pm »

Offline Snoozy

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Re: Money transfers with PR while still in SA
« Reply #2 on: February 05, 2008, 05:05:43 pm »
Hi all
I'd also love to get some advice on this. The tax clearance part is correct and quite simple, but with the rest I'm not sure...please advise!

For tax clearance in SA:
1. go to www.sars.gov.za
2. Click on forms
3. click on tax clearance
4. click on appropriate form and download
5. complete form and attach required documents as detailed on form
6. scan and email to tcc.cc@sars.gov.za
7. they got mine done within 3 days, so pretty quick.
8. when receiving email from SARS, visit nearest office and collect hard copies - they do not post them unfortuantely, and these doc's need to be original. ask for a few copies immediately.


tandl

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Re: Money transfers with PR while still in SA
« Reply #3 on: February 05, 2008, 10:32:22 pm »
Thanks Snoozy. Will get right on it.

Offline Nolan

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Re: Money transfers with PR while still in SA
« Reply #4 on: February 05, 2008, 11:01:50 pm »
I am no accountant either, but here is the way I have it.

Quote
1.  We need to open bank accounts in NZ from here - seems easy enough - send passports etc etc
See below, but if you are allowed to transfer your money into your NZ bank account, then yes, or you could put the money into your credit card and then withdraw from there.

Quote
2.  We need IRD numbers so that we are taxed less on our money in that NZ account.  Can we get the IRD numbers while still in SA?

Yes you can, the forms are available on their website.

Quote
3.  NRWT/RWT - OK, we have PR but we do not live in NZ yet.... WHICH one applies?
The way I understand this RWT (resident withholding tax) and NWRT (non resident withholding tax) thing is that you would, with PR, be considered under the RWT category and will pay tax on the interest you have earned from the lump sum you have in your NZ account.

Quote
4.  We need to get Tax Clearance so that we can send money over to the NZ account.

If you are not officially emigrating then you have two options to get your money out - on your yearly travel allowance and/or via your overseas investment allowance. As far as I know you don't require a tax clearance to take out your yearly travel allowance as you are actually required to bring back any unused funds. It is only for the Overseas investment that you require a tax clearance - somebody please correct me if I am wrong.

Quote
5.  We are sending over a "holiday allowance" according to the bank.  Is it ok that we are sending money to our OWN bank account in NZ or is that a problem?
TandL, I would chat to the bank to find out if it is okay to deposit the holiday allowance into your overseas bank account. Something tells me that it may not be okay as travel allowances are normally deposited into your SA credit card to be used while on holiday, so if you put it into an overseas account they may think that you have no intention of bringing the "leftovers" back. Give the bank a call and see what they say.

Quote
6.  If we are sending a holiday allowance, do we need to have booked our plane tickets first??
As far as I know the answer is yes as that is the proof that you are actually going on holiday.

Offline Nolan

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Re: Money transfers with PR while still in SA
« Reply #5 on: February 05, 2008, 11:28:25 pm »
Here is some great info from the Bidvest site :

PERSONAL BANKING EXCHANGE CONTROL
The exchange Control Department of Bidvest Bank Ltd can perform any Exchange Control related duties and as an Authorized Dealer have the exact same scope as any of the Big Four banks.

We entertain the submission of any type of application to the Reserve Bank for issues not prescribed in the Exchange Control rulings or Regulations at a certain cost depending on the urgency or complexity of the application.

Our Department also provides a variety of consulting services on Customer Foreign Currency (CFC) accounts, hedging strategy, Foreign Currency Accounts (FCA) and other Exchange Control related issues.

Contact Jan Lombard or Charles Sekele at (011) 407 3216 and (011) 407 3345 respectively.

Download Balance of Payment(BOP) Forms

Travel allowances and associated facilities
General Requirements

Travel facilities may be provided by way of traveller's cheques, foreign bank notes and credit and/or debit cards. In the event of travellers cheques being issued, such cheques must be signed in the presence of the issuing official and unsigned travellers cheques may under no circumstances be made available.

Persons eligible to receive foreign exchange allowances for travel outside the Common Monetary Area (CMA), within the limits described hereunder, fall into the following categories:

Permanent residents of the RSA i.e. persons whether of South African or other nationality who have taken up residence or are domiciled in the Republic; Emigrants from South Africa i.e. persons who have been resident in the Republic for at least five years and who are leaving to take up permanent residence in any country outside the CMA; Persons who have applied for but have not yet been granted permanent residence in South Africa (funds tendered in payment must be savings from local earnings or the proceeds of foreign exchange imported into the country, and these persons must have declared their foreign assets and liabilities to Exchange Control); and Nationals of countries outside the CMA who are not permanent residents of the Republic but are in the country for a lengthy period (funds tendered in payment must be savings from local earnings or the proceeds of foreign exchange imported into the country). In terms of the Financial Intelligence Centre Act you must provide proof of your residential address to obtain foreign exchange.
Not eligible to receive foreign exchange travel allowances are:

Residents of Lesotho, Namibia and Swaziland who should apply to their own exchange control authorities; South African residents studying abroad; Nationals of countries outside the CMA who are not permanent residents but are in South Africa to fulfill a temporary engagement, e.g. entertainers and sportsmen; and Nationals of countries outside the CMA who can be regarded as purely temporary visitors to South Africa.
Limits per calendar year

The total amounts of foreign exchange, which may be availed of for traveling expenses during a calendar year for one or more visits outside the CMA are listed below:

Limits:

Adult R 160 000 Child under 12 years of age R 50 000
In according a person a travel allowance the foreign exchange made available per applicant may be provided in any form.

Funds may also be paid into a bank account of the specific person traveling or close family member like wife or husband. This travel allowance may not be paid to the account of a third party living overseas.

In addition, Common Monetary Area residents traveling overland to and from Namibia, through Botswana, may be provided with Botswana Pula up to an amount of R5 000 per annum over and above the limits mentioned above.

Significance of calendar year

Travel facilities not availed of during any one calendar year may not be carried forward to the following year. However, where an allowance is provided in one year but the visit extends over the year-end, a full allowance may still be provided for any subsequent travel during the second year, provided the traveler has first returned to the RSA.

Use of credit and/or debit cards

Up to 100% of the authorised, prescribed or available travel allowance may be utilised by a traveler by means of one or more credit and/or debit cards issued in his name provided:

The issuer of the particular card or cards has obtained approval for its use outside the CMA.
The percentage of the travel allowance, which may be used by means of credit and/or debit cards, refers only to the allowance applicable to the individual cardholder for the specific journey in respect of which the travel allowance is accorded. Where a traveler wishes to make additional use of such cards to cover up to 100% of the travel allowance accorded to a spouse or child an application must be submitted to Exchange Control.

Matters to be referred to Exchange Control

Applications for travel allowances exceeding the abovementioned limits should be referred to Exchange Control.

Norms applied and factors considered

In applying the norm that the allowances should be used for the purpose stated and should be reasonable, Exchange Control will inter alia take the following factors into account:

The duration of the visit abroad; The age of the applicant (elderly people may need more comforts) and physical ability or disability; The purpose of the visit, which may influence the costs, e.g. for accommodation; The countries to be visited; The composition of the estimated expenditure; The extent to which current allowances have already been availed of; and
Any other special circumstances pertaining to the request.

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Advance payments for land arrangements
Tours, Hotel Accommodation andTickets

Persons eligible for a travel allowance who are not utilising the services of a travel agent or a tour operator, may, prior to the purchase of a passenger ticket, be provided with exchange to make advance payments or payments in full in respect of:

Deposits on tours and hotel accommodation; and Costs of admission to drama, music, religious and similar festivals and sports events subject to compliance with the conditions in the following paragraph.
Foreign exchange to meet the expenses indicated in the above paragraph may be made available only against production of documentary evidence in the form of an invoice or pro forma invoice or a facsimile copy thereof (not a brochure) from the foreign beneficiary provided:

The payment is made in the form of either a draft or a teletransmission in favour of the beneficiary concerned; and Specified Multi Purpose Documents (MPD's)
To provide for the payment of excess baggage charges travellers may, when purchasing passenger tickets in the RSA, be issued with Specified MPD's against payment in Rand.

The Specified MPD must be clearly endorsed: "For payment of Excess Baggage Charges only - refundable only in Republic of South Africa".

The amount of the Specified MPD need not be deducted from the traveler's travel allowance.

South African Residents proceeding abroad on a temporary basis

Such persons qualify for the following:

A travel allowance; and To export household and personal effects motor vehicles, caravans, trailers, motorcycles, stamps and coins (excluding coins that are legal tender in the Republic) per family unit or single person within the overall ensured value of R1 million.
Forms N.E.P. must be attested to cover the export of the relevant goods. Authorised Dealers may also authorise the export on Form N.E.P. of farming implements per family unit or single person proceeding into SADC member countries for farming purposes where the insurance value does not exceed R1 million.

Such persons must furnish an undertaking that:

All goods exported on departure together with all accumulated foreign assets, where such foreign assets were acquired with funds transferred from the Republic, or the sale proceeds thereof will be repatriated on resumption of residency in the Republic; and
Local credit cards will not be utilised whilst temporarily abroad.

Foreign Nationals

These are individuals that are in SA on a temporary working permit or are allowed by Home Affairs to conduct business in SA.

All earnings can be send out from SA provided a working contract is provided clearly outlining the monthly salary and that any transfers are in relation to these earnings.

These individuals must sign a declaration confirming the extent of there overseas assets and that these assets would not be placed at the disposal of a third party normally resident in the Republic.

Furthermore the individual must confirm that he/she did not apply for similar facilities through another authorised dealer.

Individual Foreign Investment

Any South African resident over the age of 18 can invest up to R2 million overseas or in a Foreign Currency Account held with an Authorized Dealer provided the following documentation can be viewed:

Green SA Id
Tax Clearance Certificate for Investment purposes (valid for one year from issue date)
MP 1423 available from the Authorised Dealer
BOP forms

Any income earned on the investment can be retained abroad and when repatriating funds it must just be proved how the income was earned.

Offline jafa77

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Re: Money transfers with PR while still in SA
« Reply #6 on: February 06, 2008, 05:15:47 am »
Q5 a few posts back....... I sent my travel allowance via telegraphic tranfer to MY NZ account - no problem. I did it at ABSA.

SA Going to NZ Advice Forum

Re: Money transfers with PR while still in SA
« Reply #6 on: February 06, 2008, 05:15:47 am »

Offline Alta van zyl

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Re: Money transfers with PR while still in SA
« Reply #7 on: February 06, 2008, 06:34:55 am »
What we have been doing since we came is withdrawing $800.00 per day ( that is the daily limit) on both our accounts and then deposit this into our NZ account. 

Offline kim12345

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Re: Money transfers with PR while still in SA
« Reply #8 on: February 06, 2008, 09:45:14 am »
does Maestro work overthere - or do u need visa?

Offline Alta van zyl

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Re: Money transfers with PR while still in SA
« Reply #9 on: February 06, 2008, 10:32:55 am »
I'm withdrawing on my virgin credit (mastercard)  card and on a fnb (visa) debit card.  Sure maestro is the same.   

tandl

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Re: Money transfers with PR while still in SA
« Reply #10 on: February 06, 2008, 11:38:53 am »
Thanks everyone. It almost makes sense now :)

I was wrong - we are not sending over "holiday" allowance because we would need plane tickets for that.  We are getting tax clearance for overseas investments and doing it that way.

Thanks again!!

Offline Nolan

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Re: Money transfers with PR while still in SA
« Reply #11 on: February 06, 2008, 11:42:08 am »
the overseas investment route is the better option if you want to take out more than your yearly travel allowance at one go O0

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Re: Money transfers with PR while still in SA
« Reply #11 on: February 06, 2008, 11:42:08 am »

Offline ANTONK

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Re: Money transfers with PR while still in SA
« Reply #12 on: February 07, 2008, 09:05:16 pm »
Sjoe thanks Nolan for the info  O0

tandl

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Re: Money transfers with PR while still in SA
« Reply #13 on: March 31, 2008, 06:55:29 pm »
Just an update...

SARS has lost our application for tax clearance so we will be submitting it again.   :tickedoff:  And its not like it bothers them in the least that they have no idea what happened to it.  I tell you I just wanna  :knuppel2: someone.  I am SO not going to miss the service levels in this country!!

Offline Nolan

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Re: Money transfers with PR while still in SA
« Reply #14 on: March 31, 2008, 08:16:35 pm »
hang in there and just apply for another one L, this is the "lest tyme" the mess you around O0