Lambert Roberts | Manager | Expatriate Tax Team | Tax Consulting SA | mail me |
With the South African Rand (ZAR) hovering at its strongest level since the start of 2025, at around R17.30 to the US dollar, many high-net-worth individuals (HNWIs) are enquiring about urgently moving funds offshore before year-end to take advantage of the currency’s current strength.
While this offers a timely opportunity, there is confusion about which processes apply to which thresholds when residents move funds abroad, especially when transferring more than R10 million. This confusion can lead to missed chances when moving funds offshore.
Understanding the limits and approval processes
When residents move money offshore, it involves both the South African Revenue Service (SARS) and the South African Reserve Bank (SARB). The amount in question determines the applicable process. Familiarise yourself with the following three key thresholds.
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Up to R1 million – no SARS clearance needed
Any amount below R1 million per calendar year falls under the Single Discretionary Allowance (SDA). It can be externalised without SARS approval or tax clearance.
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Between R1 million and R10 million – SARS AIT required
To move funds in this range under the Foreign Investment Allowance (FIA), residents must obtain a SARS Approval of International Transfer (AIT). This serves as a Tax Compliance Status (TCS) Pin.
Once issued, your authorised dealer (typically your bank) will automatically accept the SARS AIT. You can then transfer up to R10 million without involving SARB.
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More than R10 million – SARS AIT and SARB approval needed
For amounts exceeding R10 million, SARS must still issue the AIT, but applies a more rigorous audit process. This high level of scrutiny requires a professionally prepared application.
In addition, any amount above R10 million demands a separate layer of approval from SARB’s Financial Surveillance (FinSurv) department. Your authorised dealer must submit this application.
In our experience, SARB approval is a formal administrative step once SARS issues the AIT Pin. In practice, we have never encountered a rejection or undue delay from SARB when moving funds offshore.
A practical example – SARS clearance for R50 Million
If SARS issues an AIT Pin for R50 million, you may immediately transfer R10 million abroad under the FIA. To transfer the remaining R40 million, you first need SARB clearance. From our experience, this additional step can take two to three weeks. Clients planning on moving funds offshore should account for this timeframe.
Apply for an AIT before you need it
An AIT clearance from SARS helps ensure full reconciliation with SARS and readiness to act when market conditions turn favourable.
We recommend that all HNWIs apply for an AIT proactively, considering the total amount they plan to externalise in the next 12 months. Even if they do not intend to transfer the full funds immediately, this approach offers flexibility and speed when moving funds offshore.
Where an AIT Pin remains valid for 12 months, it gives you more control over timing and strategy.
In summary:
- Step 1 – obtain SARS AIT/TCS Pin.
- Step 2 – externalise the first R10 million under the FIA.
- Step 3 – apply via your bank to SARB for approval to move any excess above R10 million.
In conclusion
Moving funds offshore does not need to be complex. It requires careful sequencing and a clear understanding of the distinct roles of SARS and SARB. SARS confirms tax compliance, while SARB governs how and when capital may flow out of the country.
Our team specialises in managing the process from securing SARS clearance and liaising with authorised dealers to handling SARB FinSurv submissions. With expert support, you can move your funds offshore efficiently, timeously, and in full compliance with regulations.