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 | Tax and Foreign Exchange Amnesty |  |  |
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EXCHANGE CONTROL AMNESTY & AMENDMENT OF TAXATION LAWS ACT
The main purpose of the act is to provide for exchange control amnesty, with accompanying tax measures in respect of voluntary disclosure by an applicant of any contravention of the Exchange Control Regulations or failure to comply with the provisions of the Estate Duty Act or the Income Tax Act to the extent that it relates to foreign assets.
A successful applicant will be granted amnesty for the following contraventions:
- The transfer of assets offshore in contravention of Exchange Control Regulations;
- The non-disclosure of taxable interest on offshore assets;
- The non-payment of tax on domestic assets, which have been transferred offshore in breach of Exchange Control Regulations.
Any person who physically assisted the applicant to transfer money offshore may also apply for amnesty.
PERIOD OF AMNESTY
The amnesty period expires on 29 February 2004.
LEVY
- There is an Exchange Control Levy payable of 5% (where the foreign assets are to be repatriated) or 10% (where the assets are not being repatriated)
- There is a Domestic Tax Levy of 2% for applicants who are granted Domestic Tax Amnesty;
- No levy is payable on interest earned offshore, but the applicant is required to disclose such interest on the tax return for 2003.
APPLICATIONS
STANLIB will facilitate the processing of amnesty applications on behalf of clients.
CONTACT DETAILS
STANLIB: amnesty@stanlib.com
AMNESTY UNIT - 012 3155420/www.amnesty.gov.za
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