Single Discretionary Allowance 2026: Now R2 Million a Year

Single discretionary allowance: R2 million per adult per year from 8 April 2026, R400,000 travel allowance for children, no SARS PIN needed within the limit

Quick answer: The single discretionary allowance (SDA) lets every South African resident aged 18 or older send or spend up to R2 million abroad in a calendar year without first getting approval from SARS. The South African Reserve Bank raised the limit from R1 million to R2 million on 8 April 2026, after it was announced in the February 2026 Budget. For children under 18, the travel allowance went up from R200,000 to R400,000.

The SDA at a Glance

Detail	Information
New limit	R2 million per person per calendar year
Old limit	R1 million
Effective date	8 April 2026 (Exchange Control Circulars 6 and 7 of 2026)
Who qualifies	South African residents aged 18 and older
Children under 18	Travel allowance of R400,000 per calendar year (was R200,000)
SARS approval needed?	No, within the R2 million limit
Period	Calendar year: 1 January to 31 December

What You Can Use the SDA For

The SDA is meant for almost any legal purpose. Common uses are:

Travel, including spending on your card abroad.
Gifts and donations to people overseas.
Maintenance payments to family abroad.
Offshore investments, such as buying shares or opening a foreign bank account.
Paying for online purchases and services from overseas.

You make the transfer through an authorised dealer, which is usually your bank, or an authorised currency provider.

What About Amounts Above R2 Million?

If you want to move more than R2 million in a calendar year, you need approval from SARS first. SARS checks that your tax affairs are in order and issues a PIN for the approved amount, which you give to your bank. This is often called the foreign investment allowance route.

Do I Need to Tell SARS?

You do not need SARS approval for transfers within the R2 million SDA. You must still declare any foreign income or investment growth in your tax return, and the transfer is recorded by your bank. See SARS eFiling registration if you need to file a return.

Tips Before You Send Money Abroad

Check the exchange rate with our dollar to rand converter, then compare it with the rate your bank or transfer provider offers.
Ask for the total cost, including the bank’s margin and fees.
Keep proof of every transfer, such as the bank’s confirmation, in case SARS asks later.
Remember the limit is per calendar year, not per tax year.

Single Discretionary Allowance Questions

How much money can I take out of South Africa in 2026?

Up to R2 million a year under the single discretionary allowance if you are 18 or older, without SARS approval. More than that needs SARS approval first.

When did the SDA go up to R2 million?

The Reserve Bank put the new limit into effect on 8 April 2026.

Is the SDA per tax year or calendar year?

Per calendar year, from 1 January to 31 December.

How much can children take abroad?

Children under 18 have a travel allowance of up to R400,000 a year.

Can I use the SDA for offshore investments?

Yes. The SDA can be used for offshore investments, as well as travel, gifts and maintenance payments.

More money guides: dollar to rand converter, repo rate and prime lending rate and SARS tax tables 2027.