Enhanced Tax Compliance Status – Implications

(The South African Revenue Services (SARS) announced new enhancements to the Tax Compliance Status process on 24 April, 2023, with immediate effect).

• There has been some speculation, particularly on social media, that the government intends to tighten exchange control limits and that this change in legislation is the first step in this regard.  The facts do not necessarily support this speculation as in recent years the National Treasury and the South African Reserve Bank have systematically reduced the exchange control limits allowing individuals and asset managers to transfer additional funds offshore.

• This change does not affect calendar year offshore allowance limits or any other exchange control allowances, and does not represent a tightening of exchange control.  It is simply asking for additional information.

• The change in legislation is more administrative in nature, altering the procedure that needs to be followed in moving money offshore, but not the amount of money that can be transferred.  

Source:  Analytics Consulting FX Solutions