The single discretionary allowance (SDA) limit for private individuals has been increased from R1 million to R2 million per calendar year for all purposes, including travel, gifts, remittances, investments, and donations. Effective 08 April 2026.
Please note that below is summery of the updates, detailed Circulars will be made available by the SARB on the below, in due course.
1. Circular 6: Single discretionary allowance
Adult limit: Increased from R1 million to R2 million.
Minors limit (Travel related only): Increased from R200 000 to R400 000.
Resident temporarily abroad: Increased from R1 million to R2 million.
Foreign National (travel allowance): increased from R1 million to R2 million.
Prospective immigrants and immigrants: who have applied for, but who have not been granted permanent residence in South Africa may be granted a travel allowance within the single discretionary allowance limit of R2 million per calendar year.
2. Circular 7: Circular 6 changes applicable to ADLA entities
3. Circular 8: Export of Bank notes – cash limit
South African resident individuals including foreign nationals, non-residents and visitors are permitted to export up to R100 000 (increased from R25 000) in notes when leaving South Africa.
4. Circular 9: Circular 8 changes applicable to ADLA entities
5. Circular 10: Merchanting transactions
Old policy: supplier (seller) and receiving funds from the foreign importer (buyer) will not exceed 60 days for trade with countries on the African continent and 30 days for trade with any other country.
New Policy: Authorised Dealers may allow merchanting trade transactions by residents provided that the time-lag between the pay away of funds to the foreign supplier (seller) and the receipt of funds from the foreign importer (buyer) will not exceed a period of four months.
6. Circular 11: Miscellaneous transfers
With reference to sections B.14(J), (Q), (W) and (X) of the Currency and Exchanges Manual for Authorised Dealers (Authorised Dealer Manual), the various limits of R100 000 mentioned therein have been increased to R200 000.
(a) With reference to section B.16(E) of the Currency and Exchanges Manual for Authorised Dealers (Authorised Dealer Manual), the limit of R50 000 mentioned therein is increased to R100 000.
(b) Advance Import payments (none Card payment) – Authorised Dealers must, in respect of payments in excess of R100 000 (Increased from R50 000) , subsequently view a copy of the prescribed SARS Customs Declaration bearing the MRN. SARS Advance Payment Notification (APN) requirements remain unchanged.
7. Circular 13: Customer foreign currency accounts – Local settlement in foreign currency between residents
Authorised Dealers will now be permitted to process requests to extend or renew authorities previously granted by FinSurv in respect of local settlement in foreign currency between residents over CFC accounts, excluding requests involving state owned entities.
8. Circular 14: Borrowing abroad by residents
(a) Interest on import payments
Old Policy: Interest payments of up to the applicable base rate plus 3 per cent for credit extended shorter than one year.
New policy: Interest payments which have been calculated at market related rates or that are normal in the trade concerned for credit extended shorter than one year.
(b) Interest on foreign loans
Old Policy:
1. Third Party Loan – May not exceed the base lending rate plus 3 per cent
2. Shareholders loan – Interest limited to the base lending rate as determined by commercial banks in the country of denomination
3. Rand denominated loan – interest rate in respect of Rand denominated loans may not exceed the base rate, i.e. prime rate, plus 5 per cent on third party loans or the base rate, in the case of shareholders’ loans
New Policy:
1. The interest rate applicable to the new foreign loan should be market related in the country of denomination or normal in the trade concerned.
2. With regard to transactions involving related parties, Authorised Dealers must receive confirmation from senior management of the applicant company that transfer pricing documentation is maintained as prescribed by the South African Revenue Service.
3. Authorised Dealers must refer to the SARS’s Interpretation Note No.127 dated 17 January 2023 titled “Determination of the Taxable Income of Certain Persons from International Transactions: Intra-Group Loans” dealing with the transfer pricing and interest limitation rules in relation to cross-border loans between connected persons, thus forming part of the transfer pricing rules.
4. The aforementioned Interpretation Note is available on the website of SARS at www.sars.gov.za.
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