AIT applications in South Africa: What SARS reviews before you transfer funds offshore

Moving money offshore is relatively straightforward - until it isn’t. For most South Africans, smaller transfers fall comfortably within the R2 million annual Single Discretionary Allowance (SDA) and require no prior approval from SARS. But the moment your transfer exceeds that threshold, the compliance picture changes entirely. You’ll need an Approval of International Transfer (AIT) in place before your authorised foreign exchange provider can execute your transaction.

Whether you’re investing offshore, emigrating, purchasing property abroad, or making a large once-off capital movement, understanding the AIT process - and preparing for it well in advance - is the difference between a smooth transfer and a costly, time-sensitive delay.

What is an AIT (Approval of International Transfer)?

An AIT is a formal clearance issued by SARS that serves two purposes: it confirms that your tax affairs are in order, and it authorises your international money transfer provider to process a transfer above your available SDA.

The AIT covers transfers of up to R10 million per calendar year (over and above the R2 million SDA) for purposes including offshore investment, emigration, and capital externalisation.

When SARS approves your application, you receive a Tax Compliance Status (TCS) PIN. This PIN is the green light your bank or authorised dealer needs to release the funds. Without it, the transfer cannot proceed, no matter how legitimate or well-documented the transaction may be.

When do you need an AIT?

The threshold is clear: if the amount you intend to transfer exceeds your available SDA in a given calendar year, an AIT must be in place before your funds can move.

In practical terms, this applies most often to offshore investments and property purchases where the total transfer exceeds R2 million, and to emigration-related or larger once-off capital movements that cannot be accommodated within the SDA alone. South Africans who have ceased tax residency face a different position: as non-residents, the SDA is not available to them, and an AIT is required for all transfers, regardless of the amount.

If there is any uncertainty about whether your planned transfer requires an AIT, it’s important to resolve it before you commit to a payment deadline. Investment windows, property deposits, and emigration-related transfers often operate on urgent timelines that are indifferent to compliance processes that weren’t started early enough.

What SARS reviews during your AIT application

An AIT application is frequently misunderstood as a simple request for permission to move funds. In practice, it’s a structured and thorough review of your tax profile. SARS needs to be satisfied that your affairs are current, that the funds being transferred have a clear and legitimate source, and that the purpose of the transfer is properly documented.

A complete application will generally include:

• Recent bank statements (typically not older than 3 months)
• Proof of the source of funds (sale agreements, payslips, investment statements, loan agreements)
• Evidence of tax compliance, including any outstanding returns or assessments
• Supporting documentation for the specific purpose of the transfer (e.g. emigration paperwork, investment mandates)

Any outstanding tax returns, unresolved assessments, or active disputes sitting on your SARS profile should be resolved before you submit. These are typically the issues that extend processing times and introduce the kind of delays that cost money in a volatile currency environment.

Why AIT delays happen

Most AIT delays occur before a transfer ever reaches the execution stage. Even when funds are ready and the offshore account is open, nothing moves until SARS has issued the approval. In a volatile currency environment, that waiting period carries real financial risk - the exchange rate you planned around won’t hold indefinitely, and Rand volatility tends to be least forgiving when you are most constrained by timing.

The most common causes of AIT application delays include:

• Incomplete or missing supporting documentation
• Unclear or undocumented source of funds
• Unresolved tax issues, outstanding returns, or disputes on file
• Mismatched information between SARS records, bank statements, and the application itself

The practical recommendation is straightforward: initiate your AIT application well before your transfer window opens. This gives you the room to resolve documentation gaps, respond to any SARS queries, and avoid being forced into a rushed or poorly timed conversion.

Once your AIT is in place, the exchange rate determines the outcome

Securing your AIT is not the end of the process - it’s the point at which exchange rate strategy becomes the priority. Large offshore transfers are particularly sensitive to currency pricing, and even a small difference in the rate can have a significant impact on the final amount received abroad. On a R5 million transfer, for instance, a 2% hidden exchange rate margin charged by a bank could cost you R100,000 before any other fees are applied.

A common and costly mistake is treating rate management as something to consider only after the compliance work is done. A more effective approach is to prepare your documentation in advance, so that once AIT approval is granted, you are positioned to execute when market conditions work in your favour - not when the paperwork finally clears.

Ready to move funds offshore? Speak to a Future Forex specialist about your AIT application, documentation requirements, and exchange rate strategy.

Share