South Africans who transferred R1m offshore before April may have another R1m available under the revised annual Single Discretionary Allowance (SDA), which doubled from R1m to R2m on Wednesday, 8 April 2026.
Source: Pexels.
With the calendar year-end approaching, those who have already made offshore transfers should check how much of their allowance remains before making further arrangements.
Gilbert Punt, chief executive officer of foreign-exchange specialist advisory Kuda FX, explains what the increase means for investors and why understanding the remaining allowance and transfer requirements is important.
“Someone who sent R1m offshore in February may assume they have used their allowance for the year,” says Punt. “That may no longer be the case. Depending on what else they have spent under the allowance, they could have another R1m available.”
The R2m allowance covers offshore investments, overseas travel, and other permitted foreign spending. Any money already spent under the allowance this year counts towards that limit. Adults generally do not need a Sars Approval International Transfer (AIT) tax compliance status PIN to use it, although identification and transaction checks still apply.
“Having room under the allowance does not automatically make an offshore transfer a good decision. People need to consider why they want the money abroad and whether moving it now fits their financial plans,” says Punt.
Navigating Sars approval
Eligible individuals who want to transfer more than their remaining SDA allows can apply to Sars for approval to move up to a further R10m offshore per calendar year. Specialists like Kuda FX can help clients navigate the AIT process, including the documentation needed to establish the source of the funds. Punt says investors should allow time for Sars to assess their applications before making arrangements to transfer the funds.
The paperwork depends on where the money comes from. Someone transferring accumulated savings may need recent bank statements and evidence of how the funds were built up.
If the money comes from selling a property, Sars may instead require conveyancer documents and a capital gains tax calculation. These records can take time to assemble, particularly when information must be obtained from other parties. It is one reason Kuda FX encourages people to discuss their plans with specialists before they are ready to exchange their money.
With the annual allowances resetting on 1 January, investors hoping to complete a transfer in 2026 have limited time to resolve any outstanding requirements. Approval timelines can vary, making it difficult to leave the arrangements until the final weeks of December.
At an illustrative exchange rate of R17 to the dollar, R1m converts to approximately $58,800 before fees. At R18, that drops to around $55,600. That's more than $3,000 less for the same amount.
“While the exchange rate is the part people watch, the paperwork can determine when a transfer is possible. If you still need Sars approval or haven't checked what remains of your allowance, it's worth sorting that out before choosing a transfer date,” says Punt.
