i Short answer
The Single Discretionary Allowance (SDA), the amount South African residents can move offshore each year without SARS pre-approval, doubled from R1 million to R2 million. Announced in the February 2026 Budget, it was formally implemented through SARB circulars on 8 April 2026, and applies to the full 2026 calendar year.
For traders funding an offshore broker account, this means twice the headroom before needing to engage with the more involved Foreign Investment Allowance process. The combined SDA plus FIA maximum most individuals can now move offshore in a year is R12 million, up from R11 million.
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The SDA Increase: Key Numbers
This is the largest single adjustment to the SDA in nearly 15 years, since the post-2015 consolidation of the Currency and Exchanges Manual.
1. What actually changed
The Single Discretionary Allowance is the amount every South African resident aged 18 or older can transfer offshore each calendar year without needing prior SARS tax clearance or SARB approval, covering a wide range of purposes including travel, gifts, donations, remittances, and offshore investment. That limit has doubled from R1 million to R2 million.
This is described by National Treasury as a "pragmatic adjustment" reflecting how the practical value of the old R1 million limit had eroded over time due to inflation and the growing scale of cross-border activity by individuals, rather than a departure from the underlying regulatory approach. The broader compliance framework, reporting requirements, and purpose declarations remains structurally the same, only the ceiling has moved.
2. The timeline: announcement to implementation
Finance Minister Enoch Godongwana announced the increase during the 2026 Budget Speech on 25 February 2026. Draft circulars were then published by SARB on 3 March for public comment, before nine exchange control circulars were formally issued on 8 April 2026, giving the increase full legal effect.
| Date | Event |
|---|---|
| 25 February 2026 | Announced in Budget Speech |
| 3 March 2026 | Draft SARB circulars published for comment |
| 8 April 2026 | Circulars finalised, R2m limit takes legal effect |
Critically, the increase applies to the entire 2026 calendar year, not just from the implementation date forward. If you'd already used part of your original R1 million before April, the additional R1 million became available on top, rather than your usage resetting.
3. Who gets the allowance, and how much
The R2 million allowance applies per individual, not per household. Every adult resident has their own separate allowance, meaning a married couple who are both South African tax residents can move up to R4 million combined in a calendar year without SARS pre-approval, provided each transfer is genuinely for that individual's own purposes.
The allowance resets on 1 January each year and does not roll over, unused allowance from 2026 doesn't carry forward into 2027. This is unchanged from how the SDA has always worked, only the annual figure itself has moved.
4. The process itself is largely unchanged
Transfers within the R2 million limit still don't require a SARS Tax Compliance Status PIN or prior SARB sign-off. In most cases you'll simply need to provide standard proof of identity, banking details, and a stated purpose for the transfer to your bank or authorised dealer, the same straightforward process that applied under the old R1 million ceiling.
This matters practically for traders: funding an offshore broker account through the SDA remains a simple, same-day process for amounts within the R2 million limit, you haven't gained new paperwork, you've gained more headroom before needing to consider the more involved alternative route.
5. Going beyond R2 million: the Foreign Investment Allowance
If you need to move more than R2 million offshore in a calendar year, the Foreign Investment Allowance (FIA) comes into play, an additional R10 million per year, unchanged by this update. Unlike the SDA, using the FIA requires obtaining a SARS Tax Compliance Status PIN via an Approval for International Transfer (AIT) application.
SARS can take up to 21 working days to process an AIT application, and delays are common if there's an outstanding tax return, a disputed assessment, or any discrepancy on your tax profile. Combined, the SDA and FIA give most individuals a new maximum of R12 million per year they can move offshore, up from R11 million under the previous limits.
6. What this means specifically for traders
For traders funding an offshore broker account, or those with existing offshore accounts wanting to add capital, the practical effect is straightforward: twice as much can now move through the simple, fast SDA process before the FIA's more involved AIT requirement becomes relevant. This is separate from, and doesn't replace, the broader shift toward crypto being brought within exchange control under the 2026 Capital Flow Management Regulations.
Whatever amount you're moving, whether to fund an international broker account or otherwise, the same underlying principle applies: the increased limit expands capacity, it doesn't reduce compliance obligations. Keeping your tax affairs current and your documentation in order remains just as relevant at R2 million as it was at R1 million, particularly if you expect to eventually need the FIA for larger transfers.
Key Takeaways
- The Single Discretionary Allowance doubled from R1 million to R2 million per adult resident per calendar year, announced in the February 2026 Budget and formally implemented via SARB circulars on 8 April 2026.
- This is the largest single adjustment to the SDA in nearly 15 years, reflecting inflation and changed offshore spending patterns since the framework was last recalibrated.
- The allowance is per person, not per household, a resident couple can move up to R4 million combined without SARS pre-approval.
- No SARS Tax Compliance Status PIN or SARB approval is needed within the R2 million limit, the same simplified process as before, just with a higher ceiling.
- The Foreign Investment Allowance remains R10 million, meaning the combined SDA plus FIA maximum is now R12 million per year, up from R11 million.
- The increase applies to the full 2026 calendar year retroactively, transfers made earlier in the year under the old R1 million limit don't reduce the new R2 million total.
Frequently asked follow-up questions
When exactly did the SDA increase take effect?
The increase was announced in the 2026 Budget Speech on 25 February 2026, then formally implemented through SARB exchange control circulars issued on 8 April 2026. The R2 million limit has applied to the full 2026 calendar year since that date, it isn't a partial or pro-rated increase.
Does the R2 million allowance apply per person or per household?
Per person. Every South African resident aged 18 or older has their own separate R2 million annual allowance, regardless of household or marital status, provided any transfers are genuinely for that individual's own purposes. A couple who are both residents can therefore move up to R4 million combined in a calendar year without SARS pre-approval.
Do I need any special approval to use the increased allowance?
No. Transfers within the R2 million limit don't require a SARS Tax Compliance Status PIN or prior SARB approval, the same simplified process that applied under the old R1 million limit continues to apply, just with double the headroom. You'll typically still need to provide standard identification, banking details, and a stated purpose to your bank or authorised dealer.
What happens if I need to move more than R2 million?
Amounts above R2 million fall under the Foreign Investment Allowance (FIA), which remains at R10 million per calendar year, subject to obtaining a SARS Tax Compliance Status PIN via an Approval for International Transfer (AIT) application. This means the combined maximum most individuals can move offshore in a year, SDA plus FIA, is now R12 million, up from R11 million previously.
If I already transferred R1 million earlier in 2026, do I still get the extra R1 million?
Yes. The increase applies to the full 2026 calendar year, so if you used part or all of your original R1 million limit before the 8 April implementation, the additional R1 million (bringing your total to R2 million) became available on top of what you'd already used, not as a separate reset.
Does this change anything about how the allowance can be used for trading specifically?
No, the permitted uses remain the same, travel, gifts, donations, remittances, and offshore investment, including funding an offshore trading account. What's changed is purely the ceiling, traders funding international broker accounts can now move twice as much per year through the simplified SDA process before needing to engage with the more involved FIA/AIT process.
Is this increase permanent, or could it be reversed?
National Treasury and SARB have described this as a deliberate, considered recalibration reflecting inflation and changed spending patterns since the framework was last meaningfully adjusted, not a temporary or experimental measure. That said, exchange control limits are set by policy and can in principle be revised again in future, treat the current R2 million figure as the confirmed 2026 rule and verify directly with SARB or your bank if you're planning transfers well into the future.
📚 Sources & further reading
This article draws on official government publications and established financial media. Always verify current limits directly at each source.
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