The South African Reserve Bank’s Financial Surveillance Department has updated exchange control practice to allow individuals to request additional single discretionary allowance above the current ZAR 1 million threshold for bona fide current transfers without obtaining a Tax Compliance Status (TCS) from the South African Revenue Service. Transfers above the ZAR 1 million limit will be considered subject to Financial Surveillance Department verification of the bona fide nature and legitimacy of the transfer, with approval based on supporting proof. The TCS requirement remains for additional transfers of a capital nature above the ZAR 1 million single discretionary allowance under section B.2(B) of the Currency and Exchanges Manual for Authorised Dealers, and current-transfer requests under section B.4 that exceed the single discretionary allowance are similarly subject to verification. The changes are reflected in amendments to section B.4 of the Authorised Dealer Manual and include a new provision that current transfers above prescribed limits require verification, while Authorised Dealers must report the purpose of funds used abroad under the correct balance of payments category on the FinSurv Reporting System. An amended Authorised Dealer Manual has been published on the South African Reserve Bank website.
South African Reserve Bank2026-01-07
South African Reserve Bank removes SARS tax compliance status requirement for bona fide current transfers above the ZAR 1 million single discretionary allowance
The South African Reserve Bank's Financial Surveillance Department now permits individuals to request additional single discretionary allowances above ZAR 1 million for bona fide current transfers without a Tax Compliance Status. Transfers exceeding this limit require verification of their bona fide nature and legitimacy, with approval based on supporting proof. Amendments to the Authorised Dealer Manual reflect these changes, including verification requirements for current transfers above prescribed limits.