The R12 million ceiling is the maximum a South African tax resident can transfer offshore in a calendar year using their standard annual allowances. It is made up of two components: the R2 million Single Discretionary Allowance (SDA), which requires no SARS pre-approval, and the R10 million Foreign Investment Allowance (FIA), which requires an Approval for International Transfer (AIT) from SARS. The SDA was doubled from R1 million to R2 million in the 2026 Budget, announced on 25 February 2026, with the SARB circular following on 8 April 2026.
The ceiling applies per adult, per calendar year. A married couple can therefore move up to R24 million in a year under standard allowances before anything more complex is needed. Both allowances reset on 1 January, and unused allowance does not roll over. We cover how the two allowances work in detail on our annual allowances page.
Note the ceiling is not itself an allowance. It is simply what the SDA and FIA add up to. There is no single "R12 million allowance" you apply for.
What changes above R12 million: the resident case
A South African tax resident who wants to transfer more than R12 million in a single calendar year needs two things that sit outside the standard allowance framework: a Letter of Compliance from SARS and a special approval from the South African Reserve Bank's Financial Surveillance department, known as FinSurv.
The SARS Letter of Compliance is a formal document confirming the taxpayer is fully compliant with South African tax law, with no outstanding obligations. It is distinct from the AIT that covers standard FIA transfers, and the supporting-document requirements are more extensive. SARS sets these out on its Approval for International Transfers page.
The FinSurv application is the exchange-control side. FinSurv is the SARB division that oversees South Africa's exchange control regulations, and it becomes directly involved only above the R12 million ceiling. The application typically requires:
- A comprehensive declaration of local and offshore assets
- Documented source of funds for the amount being transferred (sale agreements, dividend declarations, audited statements, as applicable)
- The SARS Letter of Compliance
- A stated purpose for the transfer
Each application is assessed on its own merits. Neither SARS nor FinSurv treats approval as routine at this tier, and the review is genuinely more searching than a standard AIT. Realistic planning means building in additional lead time and getting the documentation right the first time, because queries and rejections at this level restart long clocks.
The non-resident case: the Manual Letter of Compliance
A former South African tax resident who has ceased SA tax residency does not use the SDA and FIA at all - those are resident allowances. Instead, de-registered non-residents transferring South African-sourced funds apply to SARS for a Manual Letter of Compliance (MLC), submitted by email to SARS rather than through the standard eFiling AIT flow.
There is one carve-out SARS documents for de-registered non-residents: inheritances and life policy proceeds up to R10 million do not require a Manual Letter of Compliance. Above R10 million, the MLC is required.
This is the distinction most guides blur. The resident question is "am I over the R12 million combined ceiling this year?" The non-resident question is "is this inheritance or policy proceed over R10 million?" They are different tests, with different thresholds, run through different SARS channels. If you have completed tax emigration and are moving an inheritance out of South Africa, the resident-side rules in the previous section do not apply to you.
Where transfers at this level go wrong
The failure points we see at this tier are almost never the transfer itself. They are the paperwork feeding it:
- Source-of-funds gaps. The documentation trail must account for how the capital was generated, not just where it currently sits. A property sale needs the sale agreement and conveyancer's statement; a business exit needs the transaction documents.
- Tax compliance surprises. The Letter of Compliance process surfaces any outstanding SARS issue - an unfiled return, an old assessment, a disputed balance. These must be resolved before the letter is issued, which is why lead time matters.
- Treating it as a bank-counter transaction. A transfer above R12 million is a regulatory application first and an FX transaction second. The FX leg, where we negotiate bank-beating rates on the conversion, is the straightforward part once approvals are in place.
- Mixing up the resident and non-resident routes. Applying through the wrong channel wastes weeks.
In practice, the number one issue we see with above-R12m transfers is timing expectation. Clients often come to us with a completion date already fixed - a UK property purchase, a business deal - and assume the approvals can be compressed to fit. They cannot. SARS and FinSurv work to their own clocks, and no provider can speed up a Letter of Compliance. What we can do is make sure the application is complete and correct on first submission, which is where most of the avoidable delay lives.
How WBForex handles large transfers
We guide clients through the full sequence: confirming which route applies (resident FinSurv or non-resident MLC), assembling the SARS and SARB documentation, and executing the currency conversion at bank-beating rates once approvals are in place. The only transfer cost is the flat R250 SWIFT fee charged by the bank. For transfers at this level we always start with a direct conversation, because the right route depends entirely on your residency status and the source of the funds. See our money transfers service for how the transfer mechanics work once you are cleared to move.
Planning a transfer above R12 million?
These applications need lead time. Talk to the team early and we will map the right route for your situation.
Speak to the team
Frequently asked questions
What is the maximum amount I can transfer out of South Africa per year?
A South African tax resident can transfer up to R12 million per calendar year using standard allowances: the R2 million Single Discretionary Allowance plus the R10 million Foreign Investment Allowance (as of July 2026). Amounts above R12 million require a SARS Letter of Compliance and SARB FinSurv special approval.
What is a SARS Letter of Compliance?
A Letter of Compliance is a formal SARS document confirming a taxpayer has no outstanding tax obligations. It is required, alongside a FinSurv application to the SARB, for resident transfers above the combined R12 million annual ceiling, and it is distinct from the standard AIT.
Do non-residents need a Letter of Compliance to transfer money out of South Africa?
De-registered non-residents use the SARS Manual Letter of Compliance route, applied for by email. SARS documents a carve-out: inheritances and life policy proceeds up to R10 million do not require one, while amounts above R10 million do.
How long does FinSurv approval take?
There is no fixed turnaround. Each application is assessed on its own merits, and the review at this tier is more extensive than a standard AIT. Build in additional lead time and do not fix completion dates against an assumed approval date.
Is approval above R12 million guaranteed if my taxes are in order?
No. Tax compliance is necessary but not sufficient. FinSurv also assesses source of funds and the purpose of the transfer, and each application is decided on its own merits.
