The scope of the application will greatly depend on the applicant’s personal circumstances, but in essence it requires the filing of MP336 (b) form with an authorised dealer (your local bank) included therein is a statement of assets and liabilities held in South Africa, as well as details about the applicant’s departure from South Africa. As part of the process, application is also made for approval to transfer all South African assets abroad. The intended emigrant would qualify for the following facilities with the Reserve Bank:
- Foreign Capital Allowance of R10 million per adult per calendar year, or R20 million per family unit per calendar year; and
- Travel allowance of to R1 million per adult and R200 000 per child under the age of 18 years; and
- Export of household and personal effects (including motor vehicles) within an overall insured value of R2 million
We will address the matter in more detail in an upcoming newsletter.
Our general view is to recommend that anyone intending to move abroad, or who may already be living abroad, especially if for longer than 5 years, consider completing their formal emigration for Exchange control. It has been our experience that, in many cases, the emigration applications straight forward, although matters do exist in which careful planning needs to be done to prevent a situation where a person ends up without access to while the application process is ongoing. Furthermore, special planning is also required when South African trust are involved to prevent any unintended consequences and surprises.
Do not hesitate to contact us if you are unsure about your current status, whether you should emigrate for exchange control purposes, or If you need any assistance with your financial (tax and exchange control) emigration.