Global Finance Official Website

Offshore investment moving back to South Africa

Offshore investment moving back to South Africa

A surge in the number of private clients moving offshore investment back to South Africa has been noted and is attributed to limits in cash flow triggered by the pandemic and a shaky economy. This is according to the Financial Services firm FNB. It also remarked on the need for the right protocols in ensuring funds can be invested back into the offshore markets reducing the need for unnecessary fees or additional regulatory implications. There are key things to consider for investment before tapping into offshore funds, namely, annual discretionary allowance-South African residents older than 18 are entitled to annual Single Discretionary Allowance of R1 million for purposes such as travel gifting and foreign investment; Foreign Investment Allowance of R10 million, subject to tax clearance; No additional tax clearance requirement but there is a need for incoming funds to be filed as disinvestment of capital on the cross-border reporting system.

Source: Business Tech