Every South African citizen qualifies for an SDA (Single Discretionary Allowance) of R1 000 000 per year. This amount means that you can trade up to one million rand per calendar year (1st of January to 31st of December). An SDA does not require SARS approval.
Once your SDA has been exhausted (or even before the expiry of the SDA), you can apply for a FIA (Foreign Investment Allowance) of up to R10 000 000 (in addition to the R1 000 000 under the SDA). This amount means that you can trade with an additional ten million rand per calendar year. To obtain an FIA, an application must be submitted to SARS. You do not need to apply for the full R10 000 000 at once, but you can apply for any amount which can be justified (i.e. if you can demonstrate that you hold such funds locally). BitInvest is able to guide you through this process and is able to facilitate the obtainment of the FIA through our skilled agents.
It is important to note that every trade utilizes a portion of the client’s SDA or FIA. It is the client’s responsibility to ensure that he/she does not exceed his allowance limits and must take into account any other amounts that are spent/invested/remitted offshore.
FOR EXAMPLE; if you invest R100 000 with us and instruct us to use your full SDA, we will use the same R100 000 to transact with on 10 different occasions in order to reach the R1 000 000 SDA limit.