If you’re living overseas and thinking about transferring money out of South Africa, you’ve probably asked: “Do I need to tax emigrate before I can move my money?” Here’s the deal: not everyone needs to go through tax emigration before transferring money from South Africa, but it depends on your tax residency status and how much you’re planning to transfer. And with recent updates from SARS, the rules are tighter, especially if you’re transferring more than R1 million in a year. What does all of this mean? Let’s break it down so you can transfer funds overseas from South Africa with confidence (and avoid any SARS surprises).
What’s changed with international money transfers from South Africa?
As of May 2023, SARS replaced the old Foreign Investment Allowance (FIA) and emigration exchange control processes with one streamlined system: the Approval for International Transfer (AIT) application. This update was introduced to make things simpler and to align SARS systems with the South African Reserve Bank’s (SARB) updated policies.
What you need to know about getting money out of South Africa
If you want to transfer more than R1 million out of South Africa in a single calendar year, you now need to apply for a Tax Compliance Status (TCS) PIN under the SARS AIT process.
Read more: International money transfers from SA – what SARS wants you to know about the AIT process.
Who needs to apply for a TCS PIN before getting money out of SA?
You’ll need a TCS PIN if:
- You’re a South African resident over 18 transferring more than R1 million abroad in a calendar year.
- You’ve completed tax emigration and now want to transfer your remaining South African funds offshore.
- You’re submitting a TCR01 form on behalf of someone else.
- You’ve permanently relocated overseas in the past but never formalised your non-resident tax status with SARS.
Do I need to tax emigrate to move money out of South Africa?
Let’s look at two scenarios:
1. You’re still a tax resident (and have a green ID book or smart ID card)
If SARS still considers you a South African tax resident, i.e. pay your tax in here, and you have a green barcoded ID or smart ID card, you don’t need to tax emigrate.
You can transfer:
- Up to R1 million/year under the Single Discretionary Allowance (SDA) — no SARS approval required.
- Up to R10 million/year using the Foreign Investment Allowance (FIA) — but you’ll need to apply for a TCS PIN under AIT.
As long as you’re within the limits and your tax compliance status is in order, you’re good to go.
Read more: Important documents and requirements for transferring money before and after leaving South Africa.
2. You’re no longer a tax resident
If you’ve moved abroad permanently and no longer meet the tax residency South Africa, you must square up with SARS and complete the tax emigration process before they’ll give you clearance to move large amounts of money.
And here’s the kicker: Although you’ve been living overseas for years, you still need to go through tax emigration if you don’t presently have a Non-Resident Confirmation Letter from SARS.
Why? This is a new paperwork requirement, and SARS now asks for this as part of your AIT application. Without it, your transfer can’t be processed — even if you’ve been gone for a decade.
Read more: How to get your money out of South Africa via Approved International Transfer.
SDA vs FIA: Know the limits on moving money out of South Africa
| ALLOWANCE | LIMIT | SARS APPROVAL? | WHO CAN USE IT |
| SDA (SINGLE DISCRETIONARY ALLOWANCE) | R1 million/year | No | Tax residents with green barcoded ID |
| FIA (FOREIGN INVESTMENT ALLOWANCE) | R10 million/year | Yes – TCS PIN + AIT | Tax residents and non-residents |
| SPECIAL ALLOWANCE | Over R10 million/year | SARS review + SARB FinSurv approval | Case-by-case
|
Read more: Six things SARS wants you to know about the limits on transferring money out of South Africa.
Supporting documents for AIT – what SARS wants from you now
Under the AIT process, SARS is asking for more detail than ever before. You’ll need to submit:
Mandatory disclosures:
- Info about any local or foreign trusts (and whether you benefit from them).
- Shareholding of 20% or more in any company.
- Loans to trusts or other connected entities.
Supporting documents:
- Proof of source of funds (e.g. property sale, inheritance, trust resolution).
- Statement of assets and liabilities — local and foreign — for the past three years.
- Confirmation of your tax residency status — including your SARS Non-Resident Tax Status Letter, if applicable.
- If crypto is involved, proof of sale and trading account statements.
Read more: AIT: the ultimate guide to the new SARS Tax Compliance Status for South African expats.
How to apply for a TCS PIN from SARS
You can apply via:
- SARS eFiling or the online query system, or
- Through a registered tax practitioner or financial services provider using a power of attorney.
Important: If you’re no longer a resident, you must first complete the Cease to be a Tax Resident process before applying for your TCS PIN. No proof = no transfer.
Read more: SARS Non-Resident Declaration – how to get confirmation of your tax non-residency.
What is the SARS AIT processing time?
SARS says the AIT process takes 5–21 working days, but delays can happen if:
- Documents are missing or incomplete
- There are tax compliance issues
- SARS requires further verification or an audit
Tip: If your transfer is time-sensitive, apply early and triple-check your paperwork.
Read more: Avoiding common pitfalls when transferring funds abroad from South Africa.
Getting money out of South Africa – made easy with FinGlobal.
Trying to figure out how to transfer money out of South Africa, whether you’re a tax resident or not, can be confusing, especially with the updated SARS AIT process and stricter documentation requirements.
At FinGlobal, we’re here to make your life easier. Whether you need to:
- Cease your tax residency in South Africa
- Apply for your TCS PIN from SARS
- Cash in your South African retirement annuity
- Transfer money out of South Africa
…our team can guide you through it all smoothly and stress-free. Let’s get your money where it needs to go. Get in touch with FinGlobal today to see how we can help streamline your financial migration.