Since the SARB raised the single discretionary allowance (SDA) to R2 million per calendar year on 8 April 2026, much has been said about the enhanced flexibility South African residents now have to move funds abroad.
But, while the threshold has increased, the compliance framework governing international transfers remains unchanged and currency volatility continues to introduce an extra layer of risk.
That’s why execution matters just as much as access. And without careful planning, delays and adverse rate movements can erode value quickly.
Here are some factors to consider:
Below R2 million: relatively straightforward
For transfers that fall within your annual SDA, the process is generally uncomplicated. No SARS Approval for International Transfer (AIT) PIN or South African Reserve Bank sign-off is needed. In most cases, residents simply need to provide proof of identity, banking details, and the stated purpose of the transfer.
But once you move past this threshold, the picture changes fundamentally.
R2 million to R10 million: the clock starts here
If you’re sending more than R2 million abroad per year, the foreign investment allowance (FIA) comes into play. This allows South African tax residents to transfer an additional amount of up to R10 million per calendar year, subject to SARS approval via an AIT application.
On paper, the framework is straightforward. In practice, the process introduces a new constraint that is often underestimated: time.
SARS can take up to 21 working days to process these AIT applications, but timelines are rarely uniform and usually depend on your tax record. If you have an outstanding return, a disputed assessment, or any discrepancy on your profile, processing this transfer will be delayed while you resolve it. And you might not know there’s a problem until it happens. Factor in gathering your supporting documentation, which includes proof of funds, bank statements and investment details, and the transfer can stretch from weeks to months.
“The compliance requirements for each allowance are fundamentally different,” says Harry Scherzer, CEO of Future Forex. If you haven’t factored in the SARS AIT lead time before agreeing on a settlement date with your international receiving party, you could easily run into problems.”
Another cost factor that is often overlooked is currency exposure during the approval period. Exchange rates are variable. If you’ve agreed to transfer R3 million when the rand is at 16.50 to the dollar, a six-week processing delay can mean completing the transfer at a materially different rate. If you’ve committed to a foreign purchase at a fixed price, the rand equivalent of what you owe changes every day you’re waiting – and it could work against you.
The compliance process and currency fluctuations need to happen in parallel: ideally, your rate must be locked in before the contract is signed.
Above R10 million: even more complicated
For transfers above R10 million, special approval from SARB’s Financial Surveillance Department is also required, on top of the SARS AIT clearance. SARB will scrutinise both the source of funds and the purpose of the transfer. This typically means detailed documentary proof of how the wealth was accumulated, whether through salary, investment growth, a business sale, or inheritance. The purpose must be verifiable and investment-related.
Incomplete applications delay the process, and once you’re in the queue, you simply have to wait. There is no way to expedite it.
Flexibility has increased, but complexity hasn’t
The raised SDA threshold is genuinely useful. But the rules governing it haven’t changed: it still requires your ID, proof of banking, and the purpose of the transfer. An AIT application still requires proof of source of funds, bank statements and investment details on top of that, plus SARS sign-off that can take weeks.
“Once you move beyond the SDA, timelines become far less predictable. Delays in the AIT process can have real consequences, ranging from missing a property transaction to exposure to adverse currency movements and penalties tied to international commitments.”
In this environment, preparation is critical. Working with a specialist provider can help ensure that documentation is correctly structured from the outset and aligned with SARS requirements, reducing the risk of avoidable delays or rejections.
If your transfer needs exceed R2 million, know what you’re walking into and plan well in advance before you commit, especially if large numbers are at stake.