Using RSA credit card in Australia

[flowman]

Hi All

I've searched and always get different answers. so here's my question : I'm going over on a temp visa (457) and may I use my RSA credit card for a while if required? FNB says yes but I'm not sure they know? They said must just phone to advise them I'm overseas. Etc. What about SARS? Any help?

[jpokennedy]

Why dont you just apply for a credit card as soon as you get to Aus? I came over on a 457 as well. Provided the usual to the bank i.e. employment contract/passport etc., and got my card within 3 days.

[AndreB1972]

I'm with Standard Bank, and was told I could not use my credit card if I planned to live overseas. It's actually easier and cheaper to open an Aussie bank account online, use Exchange4Free or Cashkows to move your money across, then use Australian bank cards to transact. You can get a Visa debit card, so it works just like a credit card (except you have to have money )

I only used my SA credit card to hire a car when we landed - they don't block it or anything like that.

[Donovan83]

There's nothing to stop you using it, but I remember reading that if you are intending on living somewhere else permanently (doesn't depend on visa type), you can't use your RSA credit card. The fine mentioned was something like R 250 000 or some imprisonment.

[springmielie]

My daughter also has a FNB credit card,I contacted Hugo from Cashkows on this forum about the same question, he was very helpfull, through them she was put in contact with a bank and opened her account from RSA side. She had to go in and sign some doocuments and within a week she had her credit card posted to her. She is on a 457 visa in Australia.

[flowman]

Thanks guys, to be safe I'll use my FNB card for the car hire and initial accommodation only. I have a Aus credit card issued already thru commonwealth. We are going to leave our money in RSA initial and once we are committed to stay in Oz we will transfer the funds.

[HadEnoughofJuju]

On a 457 you can use your CC as long as you call the FNB credit card division and let them you know that you are overseas. I used mine by mistake on day and got the account frozen and an email from the fraud division requesting that I contact them and confirm my address because they picked up that my address on file was in South Africa and the card wad used in Australia. When you take up permanent residence I think its a completely different story.

[Hugo2]

My daughter also has a FNB credit card,I contacted Hugo from Cashkows on this forum about the same question, he was very helpfull, through them she was put in contact with a bank and opened her account from RSA side. She had to go in and sign some doocuments and within a week she had her credit card posted to her. She is on a 457 visa in Australia.

Dankie! Thanx, yes I facilitated but it is our speedy office and Mariette and Rene on the Gold Coast that made the difference

[Hugo2]

Herewith, I may say, the answer:

Leaving SA to take up temp residence in another country immediately denies you the right to further use you SA credit or debit card outside SA borders.

You may apply through your bank to continue using it but is a formal application not easily granted and normally granted for the rest of the calendar year or on condition it is paid and funded from foreign earn income. Do make contact if you need help, see Springmielies' kind words above.

If you have not fully availed to your R1m travelling allowance by the time you depart, you can not use it via credit or debit card (unless WRITTEN permission on file) yet you can arrange BEFORE departure to have the balance sent to you by SWIFT and this deposit into your new Oz account normally gives you the right to obtain Oz credit card soonest. Our Gold Coast office can assist.

The calendar year after departure you can not send travel funds out but other SDA and FIA allowances remain available to you. Once again contact us, as Cashkows.com and ForexCapital now have formal JV in place. Cashkows.com is now your bespoke one stop advisor for cross border tax, forex transfers, Excon approvals and formal emigration including RA extraction. No other SA group has this all in house and all the divisions are headed up by specialist.

The penalty for use without permission is 40% of amount spent and you have to remit the spent money back to Rand.

Our newsletter has carried this in several articles and trust me, I attend to 2 of these transgressions per week, I do know the rules and do not allow you bank to suggest you call once there. On request I will send you the link to Excon rules but it is on www.resbank.co.za if you need it.

In fact on departure there is certain other forms to sign before you continue to use you SA debit or credit card, and these forms of sworn affidavit undertakings must accompany your SARB application to continue with the use of your SA card.

In short: Do not use your SA debit or credit card abroad (on 457 or any other permit) until you have written approval on record. If not, and you receive a letter from SARB's Chris Blignaut's dept, do call we can represent you to clear up and rectify but do expect the penalty to stand!

See http://www.cashkows.com/freshmilk/2013_may/06.asp

[Hugo2]

On a 457 you can use your CC as long as you call the FNB credit card division and let them you know that you are overseas. I used mine by mistake on day and got the account frozen and an email from the fraud division requesting that I contact them and confirm my address because they picked up that my address on file was in South Africa and the card wad used in Australia. When you take up permanent residence I think its a completely different story.

Chris Blignaut from SARB in a recent meeting / hearing made it clear: Banks can not give this permission, it must be in writing from SARB to AD (bank) to client

[Hugo2]

My daughter also has a FNB credit card,I contacted Hugo from Cashkows on this forum about the same question, he was very helpfull, through them she was put in contact with a bank and opened her account from RSA side. She had to go in and sign some doocuments and within a week she had her credit card posted to her. She is on a 457 visa in Australia.

thanx! I appreciate the kind words but was a team effort! At Cashkows.com it is all about team work

[Hugo2]

Hi All

I've searched and always get different answers. so here's my question : I'm going over on a temp visa (457) and may I use my RSA credit card for a while if required? FNB says yes but I'm not sure they know? They said must just phone to advise them I'm overseas. Etc. What about SARS? Any help?

see my detailed answer below

see FNB on

“exchange control regulations”

Means exchange controls that are administered by the South African Reserve Bank

Exchange Control department and through commercial banks authorised to deal in

foreign exchange. All international commercial transactions must be accounted for

through these authorised financial exchange dealers.

See also Excon's own rules and I quote:

"2.2.6 South African Residents proceeding abroad on a temporary basis

Such persons qualify for the following:

 A subsistence allowance for adults may be provided in accordance with

the provisions outlined in point 2.2.2. Children under the age of 18 years

may only be accorded a subsistence allowance not exceeding an

amount of R200 000 per calendar year;

 should the maximum allowance not be availed of on departure, the

balance may be accorded during the same calendar year. No further

foreign exchange may be accorded without the specific prior approval of

the Financial Surveillance Department, except for the dispensations as

outlined in points 5.1.1 and 6.1.1, and

 to export household and personal effects motor vehicles, caravans,

trailers, motorcycles, stamps and coins (excluding coins that are legal

tender in the Republic) per family unit or single person within the overall

ensured value of R1 million.

Forms N.E.P. must be attested to cover the export of the relevant goods.

Authorised Dealers may also authorise the export on Form N.E.P. of farming

implements per family unit or single person proceeding into SADC member

countries for farming purposes where the insurance value does not exceed

R1 million.

Such persons must furnish an undertaking that:

 All goods exported on departure together with all accumulated foreign

assets, where such foreign assets were acquired with funds transferred

from the Republic, or the sale proceeds thereof will be repatriated on

resumption of residency in the Republic; and

 local credit and/or debit cards will not be utilised whilst temporarily

abroad.

[flowman]

Thanks Hugo, I understand. I will not use my CC and will transfer some money today to my australian bank account. It is more to cover living expenses and odds and ends before 1 st pay check.

[HadEnoughofJuju]

I love Australia. It's my money and I can do with it as and when I please and I don't have to beg for permission to spend my hard earned cash.

Please ignore my advice above and go with Hugo on this one. Will probably keep you out of jail.

[Donovan83]

I love Australia. Money and I can do with it as and when I please and I don't have to beg for permission to spend my hard earned cash.

Please ignore my advice above and go with Hugo on this one. Will probably keep you out of jail.

This is one of the things I hate most (and had already forgotten about) in RSA. It's *MY* money, I should be able to use it *WHEREVER* I want to, send it anywhere and bring it back in without having to even discuss it with the government.

Maybe instead of having all these restrictions on taking money out, rather take away the restrictions AND STOP GIVING PEOPLE A REASON TO YANK THEIR MONEY OUT.

My SARS refund is stuck in the country because, in order to send it to myself overseas, I have to provide new FICA documents. Hard copies. Tell me, how much fraud has FICA stopped? How many criminals have been caught because of RICA? Even with all the restrictions, the Rand is in sy moer in so what is the point?

[21yearsoutofrsa]

Foreign Exchange Restrictions are another tax.

[PauletJacques]

Hmmmm...

Okay my situation is a little different, after having met with my tax consultant he says that because I plan on still doing work for SA clients while in Oz, I may use my company credit card

in Oz to still make business purchases. I will not be de-registered as a tax payer in SA, and I will also obtain a tax number in Oz. I will thereby be paying myself a salary in both countries

(Assuming I find Oz clients or a job there!).

If I am still registered as a tax payer in SA when I leave, surely I'm entitled to use my personal credit card as well?

Any answers?!

Thanks

Jacques.

[21yearsoutofrsa]

If a company is controlled in Australia it becomes liable to Australian company tax.

There is lots and lots of case law on what is considered controlled in Australia. There is a good chance of your company been liable for Australian company tax (subject to the double tax agreement) under the circumstances you have described.

Just something else for you to consider.

There is no connection between foreign exchange regulations and being a taxpayer. If your company has forex approval for the company credit card to be used abroad well and good, if not you have risk. How big the risk is depends on the amounts and how diligent SARS is likely to be and the ability for them to be able to contact you or your company. Your company will have to have a registered address in RSA.

There a fw things that can happen

1 you use the cards offshore without permission and SARS does nothing about it because the amounts make it not worth it, or they are to lackadaisical.

2 they refuse to allow the amounts to be transferred to the Australian bank to settle the amounts. Not very likely as this would be a default on international debt.

3 your credit card is frozen in RSA and comes up as "declined" when presented offshore, despite it been within it's credit limit, or even if it has a positive balance.

4 SARS decide to throw the book at your company (and you) and penalize the company and/or hold the directors personally accountable. Don't know what visa you are on but extreme forex non compliance is a criminal offense in RSA, so it will show up on a PCC.

5 a combination of 3 and 4.

I think 4 is extreme. 3 may happen if the amounts warrant, but the risk is for you to decide on. Hugo says he attends 2 cases a week were the book is been thrown and the penalties are substantial.. The investment and travel allowances these days are pretty big so I believe risk can be mitigated by going through the proper process very effectively, unless you have so much wealth you max out these allowances.

Edited July 31, 2013 by 17yearsoutofrsa

[PauletJacques]

Thanks for the info, this is what my tax guy has to say on the whole lot, thought I'd share ...

"Depending on the Visa that you get awarded (time allowed to stay in Aussie) I would suggest that you calculate how much money you will want to take out of SA - we will then do a Foreign Request for thse funds...up to R1 Mil...

Using a Credit Card abroad will not be a problem if it is ONLY for daily living expenses....this is why we need to Request Funds and get this approved (Main Funds for Establishing yourself)

People have transferred all their funds into Credit Card thinking that they can access this without Foreign Approvals....this is what he is referring to"

Also ...

• If I emigrate from South Africa, do I have to
  relinquish my South African citizenship?

No. Emigrating from South Africa formalises your exit from South
Africa for exchange control purposes. It does not mean that you have to
relinquish your South African citizenship. You can retain your South African
passport.

• I have been living abroad for a number of years, how do
  I formalise my emigration?

Your emigration should be formalised through a local bank of
your choice as follows: (i) Complete a Form M.P.336( – Emigration:
Application for foreign capital allowance. The form is available from the South
African Reserve Bank website www.reservebank.co.za
by following the links: (ii) Publications and Notices > Forms > Financial
Surveillance and exchange controls > Form MP336(. (iii) Obtain an
Emigration Tax Clearance Certificate (IT21 (a)) from the South African Revenue
Service (SARS). The Tax Clearance Certificate is based on the Form M.P.336(,
therefore, you will also have to provide SARS with a certified copy of the
completed Form M.P.336(. (iv) If you have resided permanently outside South
Africa for a period longer than five years and you do not possess any assets
other than an inheritance or insurance policies, it would not be necessary to
obtain a Tax Clearance Certificate. (v) Submit the Form M.P.336( and the Tax
Clearance Certificate, if applicable, to your bankers. You will also have to submit
any other documentation as required on the Form M.P.336(, which includes a
copy of the permanent residence permit, if you have been granted permanent
residence abroad.

• What facilities will I qualify for when I emigrate?

Emigrants qualify for the following facilities: (i) Foreign
Capital Allowance – R4 million per adult per calendar year or R8 million per
family unit per calendar year; (ii) A travel allowance of up to R1 million per
adult and R200 000 per child under the age of 18 years. The travel allowance
may not be accorded more than 60 days prior to departure; and (iii) export of
household and personal effects, motor vehicles, caravans, trailers,
motorcycles, stamps, coins and minted gold bars (excluding coins that are legal
tender in South Africa) within an overall insured value of R2 million.

• What is a blocked account?

It is an account to which exchange control restrictions have
been applied. Once your emigration status has been recorded, all capital
transfers must flow offshore via this account.

• What will happen to my remaining South African assets?

(i) The remaining South African assets of the emigrant must be
brought under the physical control of the bank who finalised the emigration to
ensure that all capital accruing after date of emigration and the proceeds of
any asset subsequently sold are placed to the credit of a blocked account. (ii)
Such funds may be utilised locally for any purpose. (iii) The Financial
Surveillance Department of the South African Reserve Bank will, on application,
consider requests to transfer the emigrants’ remaining liquid assets or the
export of quoted securities in lieu of cash, exceeding the foreign capital
allowance limits.

• Can I transfer the proceeds from the insurance policy
  directly to my overseas bank account?

Yes. The proceeds from insurance policies may be transferred directly to
the emigrant abroad where the emigrant has no bank account in South Africa,
provided the person’s emigration has been formalised and that the foreign
capital allowance limit will not be exceeded.