• RSA CB issued circular 11/2022 on foreign direct investment South African companies.
• Increased the foreign direct investment limit, for companies investing funds offshore,
• Document dated 23 February 2022, was received on 7 June 2022 due to a new feed.

Details

• Per circular 4/2022, from 23 February 2022, foreign direct investment limit for companies investing funds offshore processed by authorized dealers, is raised from R1bn to R5bn.
• If also meet prevailing investment conditions, tax obligations, reporting requirements.
• Foreign direct investments where the total cost of such investments exceeds R5bn per investment, require the prior written approval of the financial surveillance department.
• In addition, excess income/profits of South African firms' offshore branches and offices may be retained offshore, subject to current annual reporting requirements being met.
• Currency and exchanges manual for authorised dealers updated to reflect changes.