Emerging Markets Rates and Currencies Handbook

documentary evidence to the Authorized Dealer at the time of ‘pay away’ confirming either the nature and extent of the commitment. Active currency Hedges >12m: a) documentary evidence of firm and ascertainable commitment where the required documentation is not available at the time of establishment of the hedge the documentation must be presented within 14 days. South African corporates may request for approval to cover 75% of forecasted exposures. An ISDA is required for forwards, options and all derivative trades with a tenor exceeding 1 year. Trade Flows This section relates to imports. 1) Commercial invoices issued by the supplier (2) Any one of the transport documents as prescribed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP 600) and its supplement for electronic presentation, the eUCP, evidencing transport of the relative goods to South Africa; or (3) Freight Forwarders Certificate of Receipt or Freight Forwarders Certificate of Transport (4) Consignee’s copy of the prescribed SARS Customs Declaration. In lieu of the documents referred to in (2) and (3) above, arrival notifications issued by shipping companies may be tendered. Imports from entities domiciled in the member countries of the South African Development Community (SADC) may be paid for against the commercial invoice issued by the supplier and the consignee’s copy of the prescribed SARS Customs Declaration. All exports to countries outside South Africa must be supported by the prescribed SARS Capital Flow and FDI South African residents. FDI not exceeding ZAR 1 billion per applicant per calendar year: Authorized Dealers may approve requests for outward FDI outside the CMA (Common Monetary Area), including requests that fall outside the company’s current line of business. FDI exceeding ZAR 1 billion per applicant company per calendar year: FDI outside the CMA, including requests that fall outside the company’s current line of business, require the prior written approval of the SARB Financial Surveillance Department. Foreign investments by private individuals residing in SA may be allowed by an Authorized Dealer to transfer up to ZAR 10 million per calendar year for investment purposes abroad. South African private individuals are also permitted to avail of ZAR 1 million per calendar year which may be used for any legal purpose abroad including for investment purposes. Non-residents. Investments subject to documentary evidence to ensure transactions are concluded at arm’s length and are at fair market related prices. Additional Comments 1. Thereafter on case by case basis subject to exchange controls. 2. Including financial and non-financial counterparties. Customs Declaration. Please note that trade documentation may be highly specific for each importation type and clients are welcome to contact Citi South Africa to discuss documentary requirements. Citibank, N.A., South Africa Branch 145 West Street, Sandown, 2196 FX Sales Contact: +2711 944 1810 Tax Summary – South Africa South Africa W/H Tax • 15% Interest WHT general rate • Under certain tax treaties can be • N/A • N/A • WHT on Dividends: 5% / Country Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities