In brief (TL;DR): SARS declines
AIT applications most commonly for outstanding tax returns, incomplete source-of-funds documentation, or discrepancies in your tax compliance record. WBForex pre-screens every application for these issues before submission - because a declined
AIT costs you weeks, not just paperwork.
An Approval for International Transfer (AIT) is the gateway for moving more than R2 million out of South Africa in a calendar year. SARS processes thousands of these applications, and most go through without issue. But when one is declined or queried, the consequences are real: weeks of delay, missed property completion deadlines, and the stress of not knowing why your funds are stuck.
Here are the most common reasons SARS declines or delays an AIT - and what WBForex does to prevent each one.
1. Outstanding tax returns
This is the single most common reason. SARS will not approve an AIT if you have any outstanding tax returns on your record - even from years ago. Many expats left South Africa without filing their final return, or missed a year during the transition. The fix is straightforward but takes time: the missing returns must be filed and assessed before the AIT can proceed.
WBForex checks your SARS eFiling status as the first step in any AIT engagement. If there are gaps, our SARS-registered tax practitioners file the outstanding returns before the AIT application goes in - not after SARS bounces it back.
2. Inadequate source-of-funds documentation
SARS needs to understand where the money came from. A bank statement showing a lump sum is not enough - they want the underlying source. Property sale proceeds need the conveyancer's completion statement. Salary savings need employment contracts and payslips. Investment liquidations need broker confirmations. Pension encashments need the provider's payout letter.
The documentation requirements vary depending on the source, and SARS is specific about what they accept. We send clients a tailored document checklist based on their specific transfer - not a generic list - and we review every document before it goes to SARS.
3. Tax compliance status issues
Even with all returns filed, your tax compliance status can fail for other reasons: outstanding debt, pending assessments, or administrative holds on your profile. SARS checks your compliance status as part of the AIT process, and any flag will stall the application.
WBForex requests a Tax Compliance Status (TCS) check before submitting the AIT. If there are issues, we resolve them first - often a straightforward process of settling a small outstanding amount or clearing an administrative query that the client did not know existed.
4. Mismatched amounts or purpose codes
The AIT is approved for a specific amount and a specific purpose. If the amount on the transfer instruction does not match the approved AIT, or if the Balance of Payment (BOP) reporting code is incorrect, the authorised dealer will reject the transaction even though the AIT itself is valid.
WBForex handles the BOP code selection and matches the transfer instruction to the AIT approval precisely. This is a detail that catches out clients who try to manage the process themselves.
5. Expired AIT
A SARS AIT is valid for a specific period. If the transfer is delayed beyond that window - for example, because a property sale takes longer than expected - the AIT may expire and a fresh application is required. We advise on timing at the outset so this does not happen.
The cost of a declined AIT
A declined AIT does not just mean resubmitting paperwork. It means restarting the SARS processing clock - typically another two to four weeks. For clients with time-sensitive transfers (property purchases, university fee deadlines, RA encashment windows, tax emigration deadlines), that delay can be genuinely costly.
The most efficient path is to get it right the first time. Contact WBForex to have your AIT application pre-screened before submission.
