The exchange regulations of South Africa allow for a Gift Allowance, which is an annual allowance capped at ZAR1 million per adult. However, there are certain conditions pertaining to the Gift Allowance that need to be taken into account if you are considering making use of this option.
The Gift Allowance is available to all residents falling under South African exchange controls. The gift cannot be made to yourself. In other words, you cannot send money to yourself abroad. It can only be made to non-South African residents or South African residents who are temporarily based in another country.
It should also be noted that this gift transfer is deducted from your annual Discretionary Allowance of ZAR1 million.
Concerning taxation, the gift is regarded as a donation by South African tax authorities, and will be liable to donation tax if it exceeds ZAR100 000 per annum.
Money Transfers to and from South Africa - here's how:
- Foreign exchange regulations in South Africa 03-01-2011
- Essential money transfer advice for all transactions 02-01-2011
- Exchange control relaxed in South Africa 28-10-2010