February 26, 2026
2026 Budget Update: Major Increase to Your Foreign Exchange Allowances
IMPORTANT UPDATE: Following the 2026 Budget Speech announcement regarding the increase of the Single Discretionary Allowance (SDA) to R2 million, please note that the SARB is currently finalising the relevant circular to formalise this change. While initial expectations suggested a shorter turnaround, it is now anticipated that the new limit will be available for transaction towards the end of March. We will notify our clients as soon as the additional allowance is officially confirmed and ready for use.
What the 2026 Budget Means for Your Foreign Exchange
The recent South African 2026 Budget Review announced several pivotal updates to foreign exchange allowances. While we await the final circular from the SARB to enable transacting at the new levels, it is important to understand what these changes will mean for your international requirements.
Key Highlight: SDA Limit Doubled
The most notable change for private individuals is the immediate increase to the Single Discretionary Allowance (SDA). To account for inflation and currency fluctuations, the National Treasury has increased the limit from R1 million to R2 million per calendar year.
What this means for you:
- Greater Offshore Capacity: You can now externalise up to R2 million annually without needing a Tax Compliance Status (TCS) PIN from SARS.
- Expanded Use of Offshore Funds: This allowance covers all discretionary purposes, including foreign investments, travel, gifts, remittances, and donations.
- Simplified, Faster Transfers: The additional allowance is available immediately at the start of every calendar year, with no applications required
Other Notable Exchange Control Reforms
The 2026 Budget also introduced several measures to reduce “red tape” and modernise digital payments:
- E-commerce & Digital Services: The limit for miscellaneous imports or subscription payments made via credit/debit cards has increased from R50,000 to R100,000 per transaction.
- Cash Limits: For those traveling, the limit for South African bank notes you may carry when entering or exiting the country has been raised from R25,000 to R100,000.
- Foreign Inward Loans: The interest rate caps on inward foreign loans have been removed, provided the loans are market-related and reported to the Reserve Bank.
Our Commitment to You
As South Africa continues to reform its financial sector – including its successful exit from the FATF grey list in late 2025 -Currency Partners remains your dedicated specialist in navigating these evolving regulations. Please contact us at quotes@currencypartners.co.za should you wish to discuss this further.
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