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Dividends And Profits (South Africa)

Volume 897: debated on Monday 4 August 1975

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asked the Chancellor of the Exchequer what restrictions are placed on the repatriation of profits or dividends from South Africa to the United Kingdom by British companies or subsidiaries operating in South Africa; and what comparable restrictions are imposed on the remittance of profits or dividends from the United Kingdom to South Africa.

The operations in South Africa of British companies are subject to the South African exchange control rules. According to the latest available annual report by the International Monetary Fund on exchange restrictions, there is normally no restriction on the transfer of undistributed current profits or the transfer of any dividends provided that the remittance does not involve local credit facilities. Similarly, under our current exchange control rules, subject to proper provision having been made for United Kingdom liabilities, including taxes, permission is normally given for the transfer of dividends to non-resident shareholders representing earned trading profits and investment income.