Are you thinking about sending funds overseas, perhaps to chase an exciting investment opportunity or as part of your plan to relocate to greener pastures? Well, if you’re South African, you might want to sit down for this. What used to be a relatively straightforward process when it came to transferring money from South Africa has had a bit of a procedural shake-up in the past few years. What’s the deal now? Basically, if you’re thinking of making international money transfers out of South Africa and they amount to more than R1 million, things have changed, and the South African Revenue Service (SARS) now handles things differently. The big news you need to know? For larger international money transfers linked to investments or emigration from South Africa, you’ll now need to get the official nod – that’s the nod of approval – directly from SARS.
International money transfers from South Africa – what’s changed?
In May 2023, SARS replaced the previous Foreign Investment Allowance (FIA) and Emigration exchange control processes with a single, streamlined application called the Approval for International Transfer (AIT). This shift was designed to align SARS systems with the South African Reserve Bank’s updated exchange control policies and improve the efficiency and transparency of the process, from end to end.
The result? If you’re investing or emigrating and you plan to transfer more than R1 million out of South Africa in a single calendar year, you’ll need to apply for a Tax Compliance Status (TCS) PIN from SARS under the AIT process.
Who is affected by the new SARS AIT process?
You will need to pay attention to this change if:
- You are a South African resident aged 18 or older who plans to transfer more than R1 million out of South Africa in one calendar year.
- You are a South African who has completed tax emigration and you now wish to transfer your remaining funds out of the country.
- You are submitting a TCR01 form (the application for a TCS PIN) on behalf of someone else.
When do you need a TCS PIN?
You need a TCS PIN from SARS before you will be allowed to transfer funds for:
- Foreign investment purposes (up to R10 million annually under the new AIT process).
- Large sum transfers that require SARB approval through an Authorised Dealer.
- Transfers following tax emigration, once you’ve ceased to be a South African tax resident.
You will not need a TCS PIN for:
- Transfers under the Single Discretionary Allowance (SDA) of up to R1 million per calendar year.
- Transfers that fall under normal permissible limits as outlined in the SARB Currency and Exchanges Manual.
How do you apply for a TCS PIN from SARS?
You can request a TCS PIN in one of the following ways:
- By using the SARS eFiling or the SARS online query system.
- Through a registered tax practitioner or professional service provider (e.g. a financial adviser or trust company), using a power of attorney.
If you no longer meet the requirements for tax residency, you must first complete the Cease to be a Tax Resident process with SARS. Why? Because proof of tax residency is one of the paperwork requirements.
Read more:
- Tax emigration – how to become a non tax resident of South Africa.
- How and why to obtain a SARS Non-Resident Tax Status Confirmation Letter
What documents and information does SARS now require with the AIT process?
The updated AIT process is now more detailed than it was before, with SARS demanding broader disclosure and supporting documentation.
In terms of mandatory disclosures, SARS wants to know:
- Details of local and foreign trusts, including your role and any beneficiary interests.
- Shareholdings of 20% or more, direct or indirect, in any legal entity (local or international).
- Loans to local or foreign trusts.
You will be required to provide the following supporting documents:
- Proof of the source of funds (e.g. property sale agreement, trust resolution, inheritance documents).
- A comprehensive statement of assets and liabilities, local and foreign, for the past three years.
- Details of the intended international investment, including type and destination country.
- Evidence of tax residency status, including SARS Confirmation Notice of Non-Resident Tax Status, if applicable.
- If funds are derived from the sale of crypto assets, SARS requires:
- Proof of sale
- Trading account statements reflecting the relevant crypto transactions.
Read more: Important documents and requirements for transferring money before and after leaving South Africa.
Why the AIT process matters for emigrants, expats and international investors
Whether you’re emigrating, already living abroad or investing offshore, the AIT process isn’t just a bureaucratic formality—it’s a critical step to ensure your financial moves are legally sound and tax compliant. The updated rules mean more paperwork, more transparency, and stricter scrutiny from SARS, which is why it pays to get expert help from the start.
Pro tip: Apply early, gather all necessary documentation, and make sure everything is audit ready. This reduces the risk of delays or costly mistakes when SARS reviews your application.
Tax residents vs non-residents – what’s the difference when making international money transfers from South Africa?
- Tax residents may transfer R1 million annually tax-free (SDA). Transfers above that require a TCS PIN and AIT clearance.
- Non-tax residents must apply for a TCS PIN and AIT clearance for every transaction and they are not eligible to use the SDA.
If you’ve completed tax emigration, you’re a non-resident for tax purposes, but any transfer of funds sourced from South Africa – such as retirement annuities, property proceeds, or trust distributions – still needs SARS AIT approval.
SDA vs FIA: understanding your offshore allowances
Before you transfer funds overseas, it’s important to know what offshore allowance applies to your situation—and which approvals are required.
| ALLOWANCE | LIMIT | APPROVAL REQUIRED? | AVAILABLE TO |
| Single Discretionary Allowance (SDA)Â | Â
R1 million/year |
Â
No SARS approval required |
Tax residents only, provided they have a green barcoded ID book or smart card. |
| Foreign Investment Allowance (FIA) | R10 million/year | Yes. (TCS PIN + AIT PIN) | Tax residents and non tax residents.  |
| Â
Special Allowance |
More than R10 million/year | Verification process by SARS + TCS PIN + FinSurv approval | Tax residents and non-tax residents (subject to SARS discretion) |
What is the SARS AIT processing time?
While SARS aims to process AIT applications within 5–21 working days, delays may occur due to:
- Incomplete applications or incorrect documentation
- Outstanding tax liabilities or unclear residency status
- Audits or additional SARS verification checks
Tip: Apply well in advance, especially if your transfer is time sensitive.
Read more: Avoiding common pitfalls when transferring funds abroad from South Africa.
International money transfers from South Africa – how FinGlobal simplifies the process
Managing SARS compliance, tax clearance, and international transfers can be a lot to deal with, which is why FinGlobal provides expert assistance with:
- AIT applications, ensuring all documentation meets SARS requirements
- Tax Compliance Status (TCS PIN) verification
- Tax emigration and retirement annuity withdrawal
- Competitive foreign exchange rates for seamless international transfers
Need help with your international money transfer from South Africa? Contact FinGlobal today for convenient, trusted support in managing SARS compliance and cross-border financial transactions.