The South African Reserve Bank issued Exchange Control Circular No. 14/2025 amending the Currency and Exchanges Manual for Authorised Dealers to clarify the tax compliance requirements that apply when private individuals cease to be resident for tax purposes and receive capital distributions from local testamentary trusts that are to be remitted abroad. Under the amended section B.2(K)(ii)(d), capital distributions from local testamentary trusts due to non-residents may be remitted provided authorised dealers have viewed a trustees’ resolution confirming the distribution and the Last Will and Testament confirming the beneficiary’s entitlement. Distributions arising from the renunciation of a beneficiary’s right to trust capital must be referred to the Financial Surveillance Department, and attention is drawn to the requirements in section B.2(J)(xiii) of the manual. The updated Authorised Dealer Manual is available on the South African Reserve Bank website under Financial Surveillance documents.
South African Reserve Bank 2025-06-19
South African Reserve Bank amends authorised dealer rules for remitting testamentary trust capital distributions to non-residents who cease tax residency
The South African Reserve Bank issued Exchange Control Circular No. 14/2025, amending the Currency and Exchanges Manual for Authorised Dealers to clarify tax compliance for capital distributions to non-residents from local testamentary trusts. Authorised dealers must verify a trustees’ resolution and the Last Will and Testament for beneficiary entitlement. Distributions from renounced trust capital rights must be referred to the Financial Surveillance Department.