Thinking about moving money offshore? SARS now wants a much closer look before any funds leave the country.
New international transfer requirements mean South Africans and expatriates face stricter compliance checks before moving money abroad. For many taxpayers, what was once a straightforward process has become a detailed review of their financial affairs.
For business owners, this is another reminder that compliance is no longer something that can be dealt with later. Whether you’re managing customer payments, verifying customer information, or maintaining financial records, having accurate and up-to-date information is becoming increasingly important.
What Has Changed?
The South African Revenue Service (SARS) has strengthened its Approval of International Transfer (AIT) process, which taxpayers must use when seeking approval for certain offshore fund transfers. Rather than simply issuing a tax clearance certificate, SARS now requires more detailed supporting information about an individual’s financial position and source of funds. [1][2]
The AIT process allows SARS to assess a taxpayer’s compliance status before approving international transfers. Depending on a person’s tax residency status, this review may extend to local and foreign assets, income, and financial interests. [1]
For South Africans living abroad, this has created new challenges. Individuals who are incorrectly classified as tax residents may unintentionally expose a much broader portion of their financial affairs to SARS scrutiny. [1]
Banks are also playing a more active role. Financial institutions are expected to verify that the necessary approvals and compliance requirements are in place before processing certain offshore transfers. [1]
This means tax compliance is no longer just about filing returns on time. Whether you’re an individual or a business owner, SARS is placing greater emphasis on transparency, accurate records and the verification of financial information before approving high-value financial transactions. [1][3]
Why This Matters for SMEs
While these rules primarily affect international transfers, they highlight a broader trend in South Africa’s regulatory environment: stronger compliance oversight.
For SMEs, this means:
- Maintaining accurate customer and financial records.
- Ensuring payment information is correct and up to date.
- Keeping business documentation readily available.
- Verifying customer identities where required.
- Reducing the risk of payment disputes or compliance issues.
- Creating clear audit trails for financial transactions.
As compliance requirements continue to evolve, businesses that have organised systems and reliable payment processes will be better positioned to adapt.
What Businesses Should Take Away
The message from SARS is clear: transparency and compliance matter more than ever.
Whether you’re moving money offshore or managing customer payments locally, keeping accurate records and maintaining compliant processes can help you avoid unnecessary delays, disruptions and risk.
Discover more practical business insights to help you stay compliant and get paid on time.
Sources:
- South African Revenue Service (SARS), “Supporting Documents for Approval of International Transfers (AIT),” 2025. https://www.sars.gov.za/individuals/manage-your-tax-compliance-status/supporting-documents-for-obtaining-approval-international-transfers/
- South African Revenue Service (SARS), “How to Request Your Tax Compliance Status,” 2026. https://www.sars.gov.za/individuals/manage-your-tax-compliance-status/how-to-request-your-tax-compliance-status/
- South African Revenue Service (SARS), “Manage Your Tax Compliance Status,” 2025. https://www.sars.gov.za/individuals/manage-your-tax-compliance-status/