What is SDA, FIA, and AIT
As a South African resident, you are allowed to move money abroad each year under two allowances SDA and FIA
Single Discretionary Allowance (SDA)
You can transfer up to R1 million per calendar year without needing prior approval.
Foreign Investment Allowance (FIA):
You can transfer an additional R10 million per year, but you must first apply for an AIT
Approval of International Transfer (AIT):
To gain access to this R10mil limit per year, you have to submit an application at the South African Revenue Service (SARS), requesting to invest abroad. This application at SARS refers to the AIT Application.
This is especially important if you're involved in crypto arbitrage trading, where using the full R10 million FIA can significantly boost your potential profits.
You can see how to apply using the applying for Approval for international transfer toolkit.
How much can I apply for at one time
At this stage SARS has internal policies governing that taxpayers can only apply for a FIA with the available cash a taxpayer can prove. This means that in your application to SARS you need to prove that you have the funds available to the value of your application.
Is There a Recipe for Success?
It starts with simplicity. The easier your documents are for a SARS consultant to understand, the better your chances. Here are key tips to improve your success rate:
- Keep your assets & liabilities statement to one page — and use the same format consistently.
- Combine your funds into one account if possible and ensure the account is in the taxpayer’s name before generating statements.
- Submit only the most recent account balance page, not the full statement history.
Since every trader’s situation is unique, there’s no one-size-fits-all approach — but following these guidelines helps. Success often comes from trial and error, so find what works for you.
Keep in mind:
Occasional declines are normal. Don’t panic unless rejections become frequent. If they are frequent do one of two things:
- Call SARS using the contact on the letter of decline to ask for clarity, or
- Review your documents to simplify or clarify further.
More to note
SARS Compliance:
You must be in good standing with SARS to apply for a FIA. If you're unsure, check your Tax Compliance Status on eFiling.
Assets & Liabilities: Submit a statement showing balances for the last 3 financial years (ending February each year).
Avoid Duplicate Applications:
- Change the application amount every now and then.
- Use a fresh statement for every application.
- Use your PINS from previous applications
When they decline due to duplications its because you have outstanding PINS you have not used yet.
Bank Statements:
Most banks issue only one statement per month. Use the Transaction History feature to get more frequent records.Transaction Histories often don’t show your full details, so include an Account Confirmation Letter to prove ownership.
Source of funds:
If you're using funds not in your bank account (like investments or loans), don’t include them in your main cash balance. Submit a separate application to see if SARS accepts that source. or add multiple sources on your application
Showing Funds:
SARS considers both personal savings and available credit from registered providers when assessing funds for FIA applications.
Multiple Accounts:
You can use statements from more than one bank. Just make sure everything is clear and follows these guidelines.
Maximize Your Allowance:
Try to apply for as much as the 10 million as you can so as soon as you receive a pin or as decline then apply again. If you have a spouse maximise the 20 million by applying at the same time.
Joint Applications:
Couples don't need to split funds. If you have R500,000 between you, transfer it between accounts and apply individually.
Validity:
Approved applications are valid for 12 months. You can use the full amount at once or in parts during the year.