R1 million gift from SARS for South Africans taking money out of the country

South Africa is set to double the offshore transfer limit without SARS pre-approval to R2 million for the first time in 15 years, giving individuals greater flexibility to move money abroad.

The amount South Africans can send offshore without SARS clearance hasn’t budged since 2011, but now, that is about to change, said Future Forex CEO Harry Scherzer.

On 25 February, Finance Minister Enoch Godongwana announced that the Single Discretionary Allowance (SDA) will double from R1 million to R2 million per person, per calendar year.

This is the most significant overhaul of exchange control policy in nearly 15 years. The SARB has already published draft circulars to formalise the change, and the comment period closed on 17 March 2026.

While the final circular confirming the effective date hasn’t been made yet, implementation is widely expected by late March or early April. For now, the old R1 million limit technically still applies at most banks.

Under the current system, any South African resident aged 18 or older can transfer up to R1 million per calendar year abroad without needing a Tax Compliance Status (TCS) PIN from SARS.

Once the new limit goes into effect, that figure doubles, requiring no pre-approval, no special applications, and no supporting documents. Taxpayers will simply be able to instruct the bank of their intention to make the transfer.

For married couples, this gets even better. Each spouse holds their own individual allowance, which means a household could transfer up to R4 million per year under the SDA alone.

The SDA also complements the Foreign Investment Allowance (FIA), which permits transfers of up to R10 million per person per year.

However, the FIA does require an Approval of International Transfer (AIT) and full tax clearance from the revenue service.

But because the SDA has doubled, taxpayers’ combined annual offshore capacity as individuals is now R12 million (R2 million SDA + R10 million FIA), up from R11 million previously.

This is a meaningful increase, particularly for South Africans who want to move a moderate sum quickly and painlessly.

Weaker rand and inflation

The timing of this increase coincides with renewed pressure on the rand. Since the US-Israeli strikes on Iran began on 28 February, oil prices have surged toward $110 a barrel, and risk appetite has collapsed globally.

The rand has also weakened by roughly 5.8% over the past month, trading around R16.95 to the dollar at the end of last week. For a net fuel importer like South Africa, this is a worrisome combination.

In practical terms, a weaker rand means your R1 million buys fewer dollars, pounds or euros than it did even two months ago.

Doubling the SDA to R2 million doesn’t just reduce paperwork. It also gives South Africans the capacity to move a more meaningful sum offshore at a time when the currency is under strain.

This applies whether that transfer takes the form of investments, education, emigration planning, or simply protecting purchasing power. “When the rand weakens, your offshore allowance shrinks in real terms,” Scherzer said.

“A R1 million transfer bought you roughly $63,000 at the start of the year. Today it’s closer to $59,000. Doubling the SDA restores the flexibility South Africans need to make offshore transfers that are more substantial.”

The SDA was introduced at R500,000 in 2008, doubled to R1 million in 2011, and then left untouched for close to 15 years.

Inflation and rand depreciation steadily eroded its real value over that period. By 2026, that R1 million will have bought roughly half as much as it did when the limit was last adjusted.

The new R2 million threshold mostly restores the original purchasing power. National Treasury’s Annexure E confirms the increase was made to account for inflation and currency fluctuations.

It also made a commitment to review the limit regularly going forward. Welcome as it is, Scherzer said this is an overdue update.

Rare window for offshore investment

Scherzer explained that South Africa’s fiscal position has improved more in the past 12 months than in the previous decade. Exiting the FATF grey list in October 2025 unlocked the country’s first credit rating upgrade in 16 years.

This, in turn, gave the Treasury the confidence to scrap R20 billion in planned tax hikes and finally adjust income tax brackets for inflation.

For South Africans considering offshore diversification, that creates an unusual alignment: a more stable fiscal backdrop, a friendlier regulatory environment and a doubled SDA at the same time.

Scherzer recommended that South Africans hold at least 50% of their wealth offshore to cushion against rand devaluation and global uncertainty.

“Many South Africans tend to wait for the perfect moment to move money offshore, but the perfect moment is usually the one you missed.”

“A friendlier regulatory environment and a doubled SDA don’t come around together very often. It’s better to utilise your offshore allowance consistently, each year, rather than trying to time the currency.”

Banks and forex providers are waiting on the final SARB circular before they can process transfers at the new R2 million threshold.

The allowance resets every January, and unused portions do not carry over. This means that taxpayers need to “use it or lose it”.