Important Information for South Africans Who Want to Leave — or Already Live Abroad

South Africans who have emigrated — even years ago — are now facing stricter rules when trying to move money out of the country.

As of end-October 2025, SARS and the South African Reserve Bank (SARB) have tightened procedures for offshore transfers. These changes mainly affect people who still earn income in South Africa, including:

• dividends from shares

• rental income

• directors’ fees

• any other SA-sourced income

Key Change: Banks cannot send money offshore until SARS confirms two things

1. You are officially a non-resident for tax purposes (Notice of Non-Resident Tax Status), and

2. Your tax affairs are fully compliant (Tax Compliance Status – AIT PIN).

This applies even if you emigrated years ago and even if your share certificates say “non-resident.”

If you are no longer registered with SARS

You must get a Manual Letter of Compliance (MLC) — the only way to get clearance if you have no active SARS profile.

What this means in practice

• Offshore transfers now require SARS approval first, then SARB compliance, and banks will check both.

• If any step is missing, banks cannot legally release the funds.

• Dividends and other income may remain stuck in South Africa indefinitely.

• Missing “non-resident” endorsements on shares are now a major cause of blocked payments.

Bigger compliance burden

There is uncertainty about whether SARS will:

• issue one MLC per person, or

• require a new MLC for every transfer.

Banks may interpret rules differently, adding delays.

Why this matters right now

SARS slows down in December. If you need funds offshore before year-end, you should start the process immediately.

Enforcement is tightening

A recent High Court ruling (in the SARS vs. Sasfin Bank case) confirmed that banks can be held responsible if they facilitate unlawful movement of funds. This means banks are screening offshore transfers more aggressively than before.

What affected individuals must do

If you receive any SA-sourced income, check the following before your next payout:

• Your SARS tax residency status

• Your tax compliance status (AIT PIN or MLC)

• Whether your share certificates are properly endorsed as “non-resident” under exchange control rules

Failure to comply will result in delays or rejected transfers.

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