Why use Charter Forex?
Through our arrangements with Authorised Dealer banks, we are able to pass on discounted wholesale exchange rates. This equates to a saving of up to 2% on the retail rates from banks, so on a R1m transfer you could be up to R20,000 better off.
Yes. Your money is held in a dedicated bank account in your name with our partner Authorised Dealer Bank, and at no time does Charter Forex hold the funds themselves. Furthermore, Charter Forex is fully regulated by the Financial Services Board.
Better rates and better service. By receiving money in South Africa or sending money from South Africa using Charter Forex you can obtain better rates than foreign exchange transfers done through your usual bank. You will also have a dedicated contact person at Charter Forex who can help you through the maze of rules and regulations that govern foreign exchange transfers.
In order for funds to arrive in the correct account it is imperative that you provide the full and correct account details. The information required is: name of account holder, address of account holder, name of bank, address of bank, SWIFT code for bank and/or sort code, IBAN (international bank account number).
Each currency has a buy and a sell rate. The midrate is simply the average of the two and is used for indicative purposes only (it is the rate that you see when you Google the exchange rate, or on the ticker at the bottom of this page). If you are purchasing foreign currency (ie converting rands into another currency), then the rate you obtain will be a “sell” rate for rands. If you are selling another currency to convert into rands then you will obtain the “buy” rate for rands.
You can purchase property abroad using your R1m single discretionary allowance and/or your R10m foreign investment allowance. Note if your property will cost more than R11m, then you can either apply for special permission to send more than R11m, or you may be able to structure the transaction so that the payment is made over two calendar years.
Approximately 5 to 7 working days after receipt of all documents. Depending on your exact circumstances, it will generally take around 5 to 7 working days for us to register you as a client, open your account with our Authorised Dealer Bank, fix an exchange rate, complete the transfer and for the funds to arrive into the destination account. Please note that should South African Reserve Bank approval be required for your transaction (for example if you wish to transfer more than R11m in one calendar year, or if all required information is unable to be provided), then the timeframe will be significantly longer as SARB approval can take around 4-6 weeks to obtain.
If you are transferring R250,000 or more, there are no administration fees.
For transactions below R250,000 we charge the following administration fees:
- Transaction value 0 to R100,000 – fee of R250
- R100,001 to R200,000 – fee of R200
- R200,001 to R249,999 – fee of R150
A tax clearance certificate (in respect of foreign investment) is only required if you wish to utilise your Foreign Investment Allowance, ie if you want to send more than R1 million per calendar year. Obtaining a tax clearance certificate is a straightforward process which you can do yourself through SARS eFiling, or your accountant may wish to obtain it on your behalf. It is important to ensure that the certificate you obtain is “in respect of foreign investment” as the information required for this certificate is slightly different.
Alternatively, if you would like us to assist you with obtaining your tax clearance certificate, please contact us for more information.
A tax clearance certificate is issued by SARS confirming that the applicant’s tax affairs are in order. A tax clearance certificate (in respect of foreign investment) is required if you wish to take advantage of the R10m foreign investment allowance. It is not required if you only wish to transfer funds under the R1m single discretionary allowance.
Foreign Exchange Regulations
Yes, you can both take advantage of your annual allowances and so a couple can effectively transfer up to R2m per calendar year through their Single Discretionary Allowance, or up to R20m per calendar year through their Foreign Investment Allowance. Note that the funds must be transferred into an account or investment held in the same name as the sending party.
Yes, due to Anti Money Laundering legislation there are some countries that we are not allowed to transfer money to or from due to the perceived risk of these funds being used for illegal purposes. This doesn’t affect transfers to major destinations such as the UK, USA, Australia, New Zealand, Canada, Singapore, Hong Kong etc. If you are unsure if your transfer will be impacted by this, please Contact Us for more information.
As a South African citizen living in South Africa, how much money can I send out of South Africa each year?
Each calendar year, a tax payer in good standing can take money out of South Africa under the following allowances:
- R1 million single discretionary allowance
- R10 million foreign investment allowance
It is possible to invest more than R10 million per calendar year subject to South African Reserve Bank approval which Charter Forex can assist you to obtain.