bundy Posted July 20, 2021 Report Share Posted July 20, 2021 Hi, is anyone aware if there are any tax implications or laws surrounding sending money to parents in SA ? For example if we wanted to help them out with $70k? Are there any limits ? Thanks Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted July 20, 2021 Report Share Posted July 20, 2021 Bundy there is no tax implication, assuming you are not tax resident in SA. If you were, it could be a donation but the donation and not the remittance, triggers donations tax May I suggest you ensure the correct BoP (balance of payment) code is used. if you send the funds to your own bank account in SA, using BoP Code 511/7, you can later remit the same amount back to SA. This assumes they will repay and its not a loan If they have no ability to repay and do not have a SA bank account send to their account and use code 401 being gifts If you wish send me an email to capetown@currencyassist.com and we can assist with the process. I will ask our Divan to take good care of you 1 1 Quote Link to comment Share on other sites More sharing options...
bundy Posted July 21, 2021 Author Report Share Posted July 21, 2021 Thanks Hugo, On the other hand, as South Africa has donations tax, if a parent in SA were to gift money to me , an Australian citizen, would they be liable for donations tax in SA? Would it be better for them to "loan" me the money ? Appreciate your input. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.