The following article provides information on the benefits you will receive when you open a US bank account with your US tax ids.
We hope this document will help you in understanding the value of having US tax id numbers for South African residents says Aron Govil.
- Please note that the information below is not given by an attorney or CPA (Certified Public Accountant). Our attorneys and CPAs cannot provide legal or financial advice regarding opening up accounts in the USA. The following information is meant purely for guidance purposes only. For specific questions related to USA banking, we suggest you consult professional advisors who are qualified this field of expertise. Thank-you!
- A South African citizen, with a valid US tax id number, can open a bank account in the USA with a minimum of identification. Companies such as America First International Bank (AFIB) will waive all fees associated with opening an account for SA citizens and residents holding US tax id numbers. In addition, AFIB offers very competitive interest rates on time deposits and saving accounts. An AFIB banker confirmed that it is possible to access your funds from your home country through the use of online financial service providers such as Fidelity or Schwab or by using their international banking services. It would be advisable to negotiate the terms directly with the banks in South Africa before making any final decisions.
- The following information has been provided for guidance purposes only:
- Banks in South Africa are not obligated to accept tax IDs for SA residents. Banks, such as ABSA, Standard Bank, Ned bank and FNB will generally accept a US individual taxpayer id number in order to open accounts. They may require specific identification documents in addition to your passport including proof of address. You can contact them directly for more information. Commercial entities will generally be less flexible with the documentation required for opening accounts/doing business with them says Aron Govil.
- For individuals who wish to use their US tax id numbers when doing business in South Africa, it is important that you keep both an American address and a home or work phone number so that you never lose touch with the states… even while living in South Africa! By allowing your USA taxes to be deduct at source, you avoid potential penalties and interest when filing your US Taxes in April. You can also claim for tax deductions on various business expenses to reduce your taxable income when filing your US taxes. If you are not residing in the USA permanently. It is advisable that you ensure that you will still qualify. To file a return for the previous year before leaving. By visiting the States and physically residing there for 330 days of any consecutive 12-month period during 2012).
- The benefits of opening a bank account Just about every investor dreams of living their life without worrying about money; retiring with extra spending money or perhaps to live off dividends. From shares invested in all over the world explains Aron Govil. While this is possible, such international travelers often face new challenges that they must prepare for. One of these challenges arises when trying to access their money while traveling abroad.
- If you are one of those investors who are not prepare for this scenario. Then there is still some time to take action before you leave the USA. With some effort, it is possible to open new bank accounts or transfer funds abroad. Without paying costly international banking fees and receiving extremely low rates on your investments. At America First Bank (AFBI), we specialize in helping South African expatriates. By opening up bank accounts with special interest rates and no fees associated with an account opening. However, there are a few requirements that need to be in order to activate our services. You must have a US Taxpayer ID Number (IRS Form W-7) A certified copy of your South African passport is required.
- Most banks will require this information in addition to the normal documentation. You would use when opening an account at their bank. It is important to contact them directly for further details.
- The Unites States has passed legislation that allows US taxpayers living abroad to open accounts in the USA. Using their Individual Taxpayer Identification Number (ITIN).
- These special banking services are offer through America First International Bank. Which specializes in serving international clients by offering superior financial products exclusively available to expatriates!
- A South African citizen, with a valid US tax id number, can open a bank account in the USA. With a minimum of identification says Aron Govil. Companies such as AFBI offer this service and they will generally open the account within 24 hours. Once your account is open, you can transfer money from South Africa to the USA. And withdraw it as cash or make online transactions back to South Africa for free!
Open a new bank account in the USA to avoid high banking fees and exchange rates. The same service is offer by AFBI. It will cost nothing to open an account and you can transfer money from South Africa to the USA for free!