2.2 Payments of a personal nature - South African Reserve Bank

nationals of countries outside the CMA who are not permanent residentsof the Republic but are in the country for a lengthy period (fundstendered in payment must be savings from local earnings or theproceeds of foreign exchange introduced to and exchanged in theRepublic).Not eligible to receive foreign exchange travel allowances are:Residents of Lesotho, Namibia and Swaziland who should apply to theirown exchange control authorities;South African residents studying abroad;nationals of countries outside the CMA who are not permanent residentsbut are in South Africa to fulfil a temporary engagement, e.g.entertainers and sportsmen; andnationals of countries outside the CMA who can be regarded as purelytemporary visitors to South Africa.Limits per calendar yearThe total amounts of foreign exchange which may be availed of for travellingexpenses during a calendar year for one or more visits outside the CMA arelisted below:Limits:AdultsForeign exchange may be made available within the limit specified in point2.2.2 above, provided the requirements mentioned are complied with. Children under the age of 18Foreign exchange may be made available at an amount not exceedingR160 000 per calendar year.In addition, Common Monetary Area residents travelling overland to and fromNamibia, through Botswana, may be provided with Botswana Pula up to anamount of R5 000 per annum over and above the limits mentioned above.Significance of calendar yearTravel facilities not availed of during any one calendar year may not be carriedforward to the following year. However, where an allowance is provided in oneyear but the visit extends over the year end, a full allowance may still be providedfor any subsequent travel during the second year, provided the traveller has firstreturned to the RSA.Use of credit and/or debit cardsA resident in whose name one or more bank credit and/or debit cards have beenissued may use such cards to avail of up to 100% of the authorised, prescribed orremaining travel allowance applicable to the journey of such resident.Matters to be referred to the Exchange ControlApplications for allowances exceeding the abovementioned limits should bereferred to .the Exchange Control. Such requests would only be agreed to inexceptional cases.(February '08) H3

Norms applied and factors consideredIn applying the norm that the allowances should be used for the purpose statedand should be reasonable, the Exchange Control will, inter alia, take the followingfactors into account:The duration of the visit abroad;the age of the applicant (elderly people may need more comforts) andphysical ability or disability;the purpose of the visit, which may influence the costs, e.g. foraccommodation;the countries to be visited;the composition of the estimated expenditure;the extent to which current allowances have already been availed of;andany other special circumstances pertaining to the request.Advance payments for land arrangementsTours, hotel accommodation, vehicle rental and ticketsAuthorised Dealers and ADLAs may effect advance payments in respect of tours,hotel accommodation and vehicle rental at the request of resident travel agentsand/or tour operators. In this regard, a facsimile copy of an overseas invoice ore-mail message, plus a covering invoice from the local travel agent may beaccepted. The invoice issued by the local travel agent must contain the nameand residential address of the resident traveller, as well as the foreign and/orRand amount.Persons eligible for a travel allowance who are not utilising the services of atravel agent or a tour operator, may, prior to the purchase of a passenger ticket,be provided with exchange to make advance payments or payments in full inrespect of:Tours, hotel accommodation and vehicle rental; andcosts of admission to drama, music, religious and similar festivals andsports events.provided that documentary evidence from the foreign beneficiary is submitted insupport of the request.The advance payments mentioned above must be deducted from the permissibletravel allowance.The eligible parties referred to above, who are representing a club, school,provincial or national team, etc., may, however, prior to the purchase of apassenger ticket, be allowed to make advance payments or payments in full inrespect of tours, hotel accommodation, vehicle rental and to cover the cost ofadmission to drama, music, religious and similar festivals and sports events,provided that documentary evidence from the foreign beneficiary is submitted insupport of the request.These payments may be made over and above the travel allowance granted to aresident traveller.(August '08) H4

Payments of this nature may be made over and above the travel facilities grantedto a resident traveller.2.2.9 Medical and dental expensesGeneral requirementsFacilities may be provided to residents of the RSA to cover the cost of specialisedmedical and dental treatment abroad provided documentary evidence confirmingthe amount involved is exhibited to the Authorised Dealer concerned.This facility is in addition to any holiday travel allowance provided.2.2.10 SubscriptionsGeneral requirementsAuthorised Dealers may approve the payment of current membership andaffiliation fees to recognised medical, engineering and other technical, learned orinternational societies against the production of documentary evidence confirmingthe amount due. Exchange may be provided without the production of the usualdocumentary evidence of shipment or importation, to pay for the importation ofnewspapers, books and periodicals which are intended for own use and not forresale.Authorised Dealers may approve applications by residents of the RSA for theremittance to any country of club subscriptions against documentary evidenceconfirming that the amount is properly due.Authorised Dealers may approve applications by residents to pay currentsubscriptions for international business or technical information services suppliedvia data or telephone lines to visual display units or printers, against theproduction of documentary evidence confirming the amount due.Matters to be referred to the Exchange ControlAny payments of subscription fees falling outside the ambit of the aboveprovisions are subject to the approval of the Exchange Control.Norms applied and factors consideredThe Exchange Control applies the norm that the amounts of the subscriptionsshould be reasonable in terms of current practice.2.2.11 Export of South African Reserve Bank notesTravellers proceeding on visits outside the CMA may each be permitted to takewith them up to R10 000 in South African Reserve Bank notes. Since the amounttaken in such notes is intended to meet the immediate needs of travellers on theirreturn to the RSA, it is not regarded as part of the authorised travel allowance.(May '10) H8