A Fin24 user wants to know about the R1m allowance South Africans may use when going on holiday overseas. He writes:
I spend five months of the year holidaying in Europe and have set up a Euro Bank account with Lloyds International Bank to fund my holiday expenses.
I want to top this up with R500 000.
Can I do this using my R1m holiday allowance or do I have to get a Sars clearance certificate before the funds can be transferred?
If I can use my allowance, what is the procedure to follow to get these funds transferred?
Jan Lombard, head of financial surveillance at Bidvest Bank, responds:
Yes you can use your R1m holiday allowance if it falls within the same calendar year.
Since you will not be in South Africa, you will have to sign a power of attorney with the bank to do the subsequent top-up on your behalf, if within the same calendar year.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.