5 steps to transfer your Single Discretionary Allowance
Most of the guidance that South African clients get around the Single Discretionary Allowance stops the moment the transfer clears. If you're like many other clients, you might not be entirely clear on what to do next. You've taken the important step of diversifying your currency risk, but it's what you do next that most determines the outcome.
Here's exactly how it works.
Before you start
Have these details on hand:
- Your offshore bank account number and SWIFT code
- The amount you want to transfer
- Your reason for the payment
With that ready, the process itself takes five steps.
1. Log in and select International Payment
On the Banking App: tap Transact, then Pay, then Overseas payment.
On Internet Banking: tap Transact, then Outgoing international payment under International Payments, then Make a new payment.
2. Choose your account and destination
Select the account you're paying from, then tick Isle of Man. Choose the currency and enter the amount you want to send.
3. Add your offshore banking details
Next, enter your personal information and banking details in the fields provided, including your account number and SWIFT code for Isle of Man, which is: SBICIMDX.
4. Choose your reason for payment
You'll be asked to select a reason for payment, known as a BoP (Balance of Payments) declaration.
This is the step where many people get stuck.
If you're funding your offshore account or making an SDA-related transfer, use the BoP code 511-04.
The reason this is so important is that choosing the wrong category could trigger the wrong tax treatment further down the line.
If you're not sure which option applies to you, it's worth checking with your Relationship Manager before you submit, rather than guessing.
5. Review and confirm
You'll see the exchange rate and full cost breakdown before you commit. You'll have 30 seconds to accept the rate, if it expires, you'll simply be shown a new one. Review your details and confirm.
That's it. Your payment is submitted for processing, and you can track its status from the app.
What it costs
Costs vary depending on the currency, transaction amount, destination, and whether the payment is made from your domestic or international account. Additional charges may also apply, including fees charged by recipient or intermediary banks.
Can I do it myself?
Yes. You can complete the whole process yourself through the Banking App, Internet Banking, or Shyft. If you'd rather have help, your Relationship Manager or banker can guide you through it.
How long does it take?
If you submit your SDA transfer instruction before the daily cut-off time, Standard Bank will typically process the payment on the same business day. In most cases, these funds will reflect in your offshore account within 1 to 2 business days, although actual timelines may vary.
Frequently Asked Questions
How do I transfer funds using my SDA?
If you already have an offshore account with Standard Bank, you transfer funds directly from your South African account through the Banking App. It's processed as an international transfer rather than a local one.
Does moving money to my own offshore account count toward my SDA?
Yes. Any transfer offshore counts toward your allowance, including funding your own account, even though the money still belongs to you.
Do I need special approval to transfer larger amounts within my R2 million?
No. As long as the transfer is within your annual allowance, it goes through the same app-based process regardless of size. Special processes only come into play once you move beyond your R2 million, at which point you'd work through a branch or Bureau de Change instead.
Does not needing tax clearance mean there's no paperwork at all?
Not quite. SARS doesn't require a tax clearance certificate for transfers within your SDA, but your bank still needs standard supporting information, such as the recipient's details and the reason for payment, before it can process the transfer.
What if I want to move more than R2 million offshore?
You'll need a tax clearance certificate from SARS to access your Foreign Investment Allowance, which covers a further R10 million a year. Combined with your SDA, that's up to R12 million annually.
What's a BOP code, and do I need to worry about it?
A Balance of Payments (BOP) code is simply the reason for your payment, required on any international transfer to comply with exchange control rules. You select it as part of the transfer itself; it isn't something you need to source or apply for separately.
Can I use my SDA to fund someone else's account?
No. Your SDA is for your own use. Funds transferred under it need to go into an account in your name.
Can I use someone else's allowance for my own funds?
No. Each person's allowance is tied to them individually. Using someone else's allowance to move your own money can create ownership, tax and reporting complications for both of you.
The information provided in this article is for general information and educational purposes only and should not be construed as financial advice. This article does not take into account your individual circumstances, financial situation, or objectives. Before making any financial decision or investment, it is recommended that you consult with a qualified financial advisor or conduct your own research. Standard Bank is not liable for any losses or damages incurred as a result of any financial actions taken based on the information provided
Standard Bank Isle of Man Limited is licensed by the Isle of Man Financial Services Authority. Standard Bank House, One Circular Road, Douglas, Isle of Man, IM1 1SB. Registered in the Isle of Man No.4713C.
Deposits made with Standard Bank Isle of Man Limited are covered by the Isle of Man Depositors’ Compensation Scheme as set out in the Depositors’ Compensation Scheme Regulations 2010 (“the Regulation”). The maximum amount of compensation is, subject to Regulation 13, limited to £50 000 (for an individual, other than a trustee or nominee) and £20 000 (for most other categories of depositor). Full details of the DCS and banking groups covered by the DCS are available on the IOMFSA website (www.iomfsa.im).;
The Isle of Man has a Financial Services Ombudsman Scheme covering disputes relating to financial services offered in or from the Isle of Man to individuals and trustees or managers of SIPPs.
Standard Bank Isle of Man Limited is part of Standard Bank Group; incorporated in South Africa and regulated by the South African Reserve Bank as a bank controlling company.
Standard Bank Isle of Man Limited places funds with other parts of its group and thus its financial standing is linked to that of the group. Publicly available information, including reports and accounts, is obtainable from www.standardbank.com/international
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