emigration servicesFOREIGN FUNDS VOLUNTARY DISCLOSURE PROGRAMS
Voluntary Disclosure Programs
For South African tax payers who have not previously formalized their foreign assets, it is necessary to formalize their foreign funds with the South African Revenue Bank.
THE SOUTH AFRICAN RESERVE BANK REGULARIZATION PROGRAM
The Reserve Bank regulation program works as follows:
- Depending on various factors a “forfeit to the state” i.e. fee is changed to regulate the Unreported / unauthorized foreign funds.
It is possible for certain situations to be legalized without any “fee” i.e.
- Funds earned overseas
- Funds that were in owned by immigrants to South Africa prior to the arrival in South Africa.
- Funds inherited overseas (for funds inherited overseas from a non South African resident).
Taxation VDP (Voluntary Disclosure Program)
In terms of this program a taxpayer would need to disclose and thus regulate their tax situation. Were taxes were not paid since 2001 on foreign taxes the income would be taxed without penalties but interest would be charged on late payment of taxes.