Can you get your money back out?

Treaty coverage for a United States parent

The United States has income-tax treaties in force with four African states. Everywhere else the domestic rate applies in full, and the only relief for a US parent is a foreign tax credit at home.

The six gates of an outbound transfer

1. 1 · Record the capital on the way in

   Foreign exchange for an outbound transfer is released against evidence of the inbound transfer. Obtain the certificate, declaration or registration at the moment the money lands — not when you want it back.

2. 2 · Keep audited local accounts

   A dividend may only be declared out of distributable reserves shown in audited financial statements filed locally. No audit, no lawful dividend.

3. 3 · Settle local tax and obtain clearance

   Corporate tax, and in several markets a tax clearance certificate, must be settled before the bank will execute the transfer.

4. 4 · Apply the correct withholding rate

   The payer withholds at the domestic statutory rate unless a treaty applies and the documentation — residence certificate, declaration, beneficial-ownership statement — is in the payer's hands before payment.

5. 5 · Execute through a licensed bank

   Only an authorised dealer or licensed bank may execute the outbound transfer, and only against the documentary file assembled in the steps above.

6. 6 · Report in the home jurisdiction

   A US parent reports the foreign income and claims foreign tax credits for the tax withheld. Where no treaty exists, the credit is the only relief available.