View noticesSARS tightens offshore-transfer rules for resident trusts
The South African Revenue Service (SARS) has enhanced the Manual Letter of Compliance (MLOC) required from South African resident trusts seeking to transfer funds abroad.
According to the Fiduciary Institute of South Africa, It includes a mandatory tax-compliance check with effect from 16 October 2026.
Under the revised process, a resident trust must obtain a Tax Compliance Status (TCS) “Good Standing” confirmation when presenting its MLOC to an authorised dealer for an international funds transfer.
The change means that tax compliance is now an explicit supporting requirement for offshore transfers, rather than a matter handled separately.
The enhanced MLOC applies to transfers facilitated through authorised dealers, the banks and other institutions approved to process foreign-exchange transactions. SARS has directed taxpayers and advisers to its “Supporting documents for Approval of International Transfers” page for further guidance.
Why it matters
The requirement gives SARS another mechanism to verify that a trust is compliant before funds leave South Africa. Trustees, fiduciary practitioners and authorised dealers should therefore ensure that a trust’s tax returns are filed, outstanding tax matters are resolved and its TCS status is current before initiating an offshore transfer.
For trusts with regular offshore distributions, investment flows or emigration-related transfers, the practical message is straightforward: check TCS Good Standing early. A lapse in compliance could now delay or frustrate an otherwise valid transfer request.
For more information, read this: Supporting documents for Approval of International Transfers webpage.