Page 1 of 2 12 LastLast
Results 1 to 10 of 12

Thread: Foreign (US Dollars) Receipt into SA

  1. #1
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts

    Foreign (US Dollars) Receipt into SA

    Hi All,
    I have an opportunity to receive fund in US Dollars from offshore associates
    I need to decide on the best possible option for the transfer from the following:

    1. Receive the fund via my company account as capital investment from the associates
    2. Receive the funds in my personal capacity, transfered into my pesronal bank account

    What are the requirements and tax implications on the above cases?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by SSS100 View Post
    2. Receive the funds in my personal capacity, transfered into my pesronal bank account
    And for what given reason would that be?

  3. #3
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    I initially met this guys in Bordeaux, France in 2010 and we had a good chat about opportunities in SA and France
    Then we kept in touch and grew the association even further, in general and now at a point where they have agreed to "give" me something to see how i can develop the opportunities

    They are not specific in terms of me putting the funds in my company or personal account
    So far, it's a longshot in terms of what I think can be done...hence they are willing to put something to help me explore more

  4. #4
    Suspended
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    893
    Thanks
    8
    Thanked 61 Times in 54 Posts
    How about ................. my account ............... if you are really concerned ......... and I will explore some more opportunities for you

  5. #5
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    Depends what opportunities you come up with

    For now, i need to a way to handle the scenario and they need an answer from me

  6. #6
    Suspended
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    893
    Thanks
    8
    Thanked 61 Times in 54 Posts
    Depends what opportunities you come up with
    I can think of quite a few ............ but obvisouly not over an open forum .....

  7. #7
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    k, send ur details

    And is there any opinion on the matter

  8. #8
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    If they're investing in the company, I'd suggest they pay into the company account rather than your personal account.

    Quote Originally Posted by SSS100 View Post
    What are the requirements and tax implications on the above cases?
    It's not really driven by which account it goes into. A reason for the receipt of funds will be asked for and must be given. If it's a capital investment, I'm not aware that there is a tax implication at that point.

  9. #9
    Silver Member
    Join Date
    Oct 2011
    Location
    johannesburg
    Posts
    212
    Thanks
    2
    Thanked 9 Times in 9 Posts
    Thanks Dave, maybe capital or loan is better...we still not sure of the success of the project, possibilities are huge but it may or may not work. business is not easy these days
    The French are willing to draw a formal agreement/ arrnagement once we see the direction it will go, for now they trust me and they know they will have proof of transfer as evidence. And we have had good relationship in the past, thats a very impottant thing to them i have come to realise that

  10. #10
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    3,480
    Thanks
    134
    Thanked 695 Times in 593 Posts
    Blog Entries
    1
    I would suggest you declare it as foreign capital investment, so that in the case it does work out, then there is no difficulty in informing the SARB, that the outgoing payment is for repayment of the capital investment, and for profits.

    Placing it into your personal account may draw unnecessary inspection into your private affairs, as the concern is with the reason that you are receiving these funds in your personal name. it will also create difficulty in repayment of the investment and profits if it does bear fruit to SARB when the time comes for the repayment.

    It may be a good idea to get an agreement in place, with the terms and conditions, and depending on the amounts involved, may require SARB approval first, and with the agreement in place, it shows that this is a business deal, and not some other kind of deal.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  11. Thanks given for this post:

    Dave A (08-Aug-12)

Page 1 of 2 12 LastLast

Similar Threads

  1. Replies: 2
    Last Post: 09-Nov-10, 03:49 AM
  2. Income Traveller - cost $75 dollars
    By traveldeals in forum MLM Industry Forum
    Replies: 0
    Last Post: 09-May-08, 05:49 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •