As an expat living abroad, many things are hard to forget about South Africa. One of the most important ones? The South African Revenue Service (SARS). Even if you’re no longer a resident, you might have income or assets remaining in South Africa. That’s why a SARS tax number is unavoidable. With this inevitability in mind, let’s discuss what expats need to know.
Why South African expats need a SARS tax number
Even if you’ve emigrated from South Africa, maintaining a SARS tax number is essential for several reasons:
- Tax compliance: If you still have income sources tied to South Africa, such as rental income, dividends, or capital gains, you’ll need a SARS tax number to file your tax returns.
- Pension and retirement fund access: Your SARS tax number is required to access your South African pension funds or retirement annuities, as SARS wants a cut of your income or lump sum withdrawal, as the case may be.
- Property transactions: If you own property – or plan on investing in property – in South Africa, you’ll need a tax number for property-related transactions like buying, selling, or renting.
- Estate planning: Your tax number is essential for estate planning purposes, especially if you have assets in South Africa, to smooth the process of winding up your estate and distributing inheritances to your beneficiaries.
South African expat living abroad? You’re going to want to read these articles:
- Do I still need to submit my South African tax returns if I’ve emigrated?
- SARS Alert: financial emigration doesn’t automatically make you a tax non-resident
- What happens if you ceased tax residency in South Africa a number of years ago without notifying SARS?
Document checklist for applying for a SARS tax number
SARS will typically need the following documents from you:
- Proof of identity: A copy of your South African ID document or passport.
- Proof of residence: A copy of a recent utility bill or bank statement with your South African address.
- Proof of income: If applicable, documentation of your income sources in South Africa.
SARS tax number registration online application
The most convenient way to apply for a SARS tax number is through the SARS eFiling portal.
- If you don’t have one already, create a profile on the SARS eFiling website.
- Once logged in, initiate a new registration.
- Fill in the required personal information, including your full name, ID number, and contact details.
- Upload the necessary documents as specified in the application process.
- Review your application and submit it electronically. Once submitted, SARS will process your tax number application.
SARS tax number confirmation and verification
Once you’ve successfully registered for a SARS tax number, you’ll receive an initial notification and a temporary tax number. This allows you to start using your tax number immediately, even while SARS verifies the information you’ve provided.
After verification, SARS will issue an official Tax Number Confirmation Letter, also known as a Notice of Registration (IT150). This letter is crucial as it contains your unique Taxpayer Identification Number (TIN), your official tax reference number.
The confirmation letter is proof of tax registration and is essential for various financial transactions and tax-related matters in South Africa.
Applying for a SARS tax number – hurdles expats may face
Expats may encounter challenges when applying for a SARS tax number, mainly if they no longer reside in South Africa. This can look like:
- Document verification: SARS may require additional verification of documents, especially for expats living abroad.
- Technical issues: The eFiling portal can sometimes be complex, and technical difficulties may arise.
- Time delays: Processing times may vary, and delays can occur, especially during peak periods.
Tips for staying in good standing with SARS as an expat
To avoid nasty surprise penalties and stay on the right side of the revenue authority, SARS, especially as an expat with ties to South Africa, consider the following tips:
- Meet your tax return filing requirements: Even if you have minimal income from South African sources, file your tax returns annually.
- Keep accurate records: Maintain detailed records of your income, expenses, and asset holdings in South Africa.
- Respond to queries from SARS promptly: If SARS contacts you regarding your tax affairs, respond swiftly and provide the required information.
This will make it easier for expats to effectively manage tax obligations and maintain a positive relationship with SARS.
Read more: Top tips for staying under the radar with SARS.
How to get a tax number for a deceased person in South Africa
Unfortunately, a deceased individual cannot hold a tax number. If you’re the executor or administrator of an estate with outstanding tax obligations, you must contact SARS directly for specific guidance on their toll-free number: 0800 00 7277. They will provide the necessary information and procedures to handle the deceased person’s tax affairs, including filing final tax returns and settling outstanding tax liabilities.
When does your business need a SARS tax number?
If your business operates in South Africa and generates income, you must register for a tax number with the South African Revenue Service (SARS).
Company tax registration: This is necessary for businesses that generate income within South Africa. You’ll receive a company tax number, which will be used to identify your business for tax purposes and is required when filing your annual income tax return.
VAT registration: Businesses exceeding a specific annual turnover threshold must register for VAT. You’ll receive a VAT registration number. However, VAT registration is more complex than company tax registration. It involves charging VAT on your sales, claiming input VAT on purchases, and filing periodic VAT returns. Here, consultation with a tax professional is recommended to ensure compliance.
FinGlobal: reliable assistance with your SARS tax number
Dealing with SARS can get complicated, especially for expats. That’s where FinGlobal comes in. Our team of experts can help you with everything from registering for a tax number, tax emigration and ensuring expat tax compliance and claiming tax refunds. Why choose FinGlobal? Expert advice and hassle-free service. We handle all the paperwork and complexities for you.
Ready to simplify your tax life? Contact us today to learn more about how we can help.
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