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Tax implications of sending money back


bundy
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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

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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

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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. 

 

 

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