Previously, when one sought to either financially emigrate or transfer large sums of money out of SA, they would either have to complete the “Emigration” or “Foreign Investment Allowance” application types, respectively. Quite simply, one would need to obtain separate security PINs to verify the TCS of a taxpayer.
The new AIT application has now consolidated these application types into a single AIT PIN and applies to both South African tax residents who are 18 years and older and transferring more than R1 million out of SA in a calendar year, as well as to taxpayers who have ceased their tax residency in SA but need to transfer funds abroad, from a South African source.
SARS, having taken note of the fact that the South African Reserve Bank has relaxed certain exchange control requirements, is also aware, in less technical terms, that only South African tax residents may be permitted to avail of a Single Discretionary Allowance (SDA) within an overall limit of R1 million per calendar year without the requirement to obtain a TCS PIN letter.
With that in mind, there are no two ways about it that requesting a valid AIT PIN is needed for both:
(i) Tax residents in SA, who seek to transfer more than R1 million out of the country, per calendar year; and
(ii) Tax non-residents in SA, who have successfully obtained their Notice of Non-Resident Tax Status confirmation letter from SARS but seek to transfer any amount out of the country, per calendar year. Of importance, is that this includes SA expats using a DTA.