February 11, 2026
Understanding the New Compliance Landscape: What Non-Residents Need to Know
The relationship between the South African Reserve Bank (SARB) and the South African Revenue Service (SARS) has historically been one of separate mandates. However, recent regulatory updates have formalised a much closer collaboration between the two, effectively bridging the gap between exchange control and tax compliance.
At Currency Partners, we understand that for our non-resident clients, these changes can feel like added “red tape.” In reality, they represent a shift toward a more unified, transparent framework. Below is a simple guide to what has changed and how it impacts your international transfers.
The Unified Compliance Requirement
The most significant shift is the formal collaboration between SARS and the SARB. For non-residents and individuals who have ceased South African tax residency, the ability to transfer South African-sourced income now hinges on active tax compliance verification.
Essentially, “Authorised Dealers” (your bank) can no longer process certain transfers unless you provide one of two things, depending on your status:
- A TCS – AIT PIN: If you are already registered on the SARS database.
- A Manual Letter of Compliance (MLC): If you are a non-resident not currently on the SARS database.
This “Approval for International Transfer” (AIT) process ensures that all South African-sourced income is fully accounted for before it is externalised.
Key Changes by Income Type
Understanding which category your funds fall into is essential for navigating the new rules.
Pensions and Annuities
There is some good news here. If you are a non-resident (or have ceased residency) receiving a pension or compulsory annuity from a registered fund or insurer, you no longer need an annual Tax Compliance Status (TCS) of Good Standing.
- What you need: Evidence in the form of your latest IRP5/IT3(a) or a payment advice showing the specific tax codes 3602/3652 (as long as not accompanied by code 3611 or code 3661), 3603/3653, 3610/3660 and/or 3618/3668.
- Frequency: This is usually only required once at the start of the contract or before the first payment of the new tax year.
Rental Income, Dividends, and Trusts
Stricter rules now apply to these passive income streams. Whether it’s rental from a Cape Town apartment or a distribution from a family trust, SARS must verify the transfer.
- Rental Income: You must provide a copy of the rental agreement and confirm the amount is “reasonable” relative to the property value and the same SARS compliance (AIT PIN or MLC).
- Dividends: Dividend distributions from a South African entity now require the same SARS compliance (AIT PIN or MLC).
- Trusts: Distributions from inter vivos or Last Will trusts now require the same SARS compliance (AIT PIN or MLC).
Residents Temporarily Abroad
If you haven’t formally ceased tax residency, your rules are different. Income transfers (excluding pensions/annuities) must now form part of your Single Discretionary Allowance (SDA) of R1 million or your Foreign Capital Allowance (FCA). Any transfers outside these defined limits require prior written approval from the SARB.
Please note: These regulatory updates apply specifically to outward transfers — that is, funds being sent from South Africa to an overseas destination.
How we can help
At Currency Partners, our goal is to take the complexity out of these regulatory shifts so you can focus on what’s important.
Our team simplifies this by:
- Assessing Your Status: Determining if you need an AIT PIN or a Manual Letter of Compliance.
- Handling SARS Liaison: Managing the application process to ensure your tax profile is “merged” and compliant.
- Coordinating with Banks: Working with Authorised Dealers to ensure your documentation meets SARB Manual requirements.
If you are unsure how these changes affect your existing payment structures, please reach out to your Personal FX Dealer. We are here to provide the personal service and expert insights needed to keep your currency transfers simple, secure, and compliant.
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