If you’re a South African living abroad, you may have heard that SARS (the South African Revenue Service) is actively reaching out to expats about their tax residency status. Whether you’ve received one of these official letters or are simply concerned about how these updates could affect you, it’s essential to understand why SARS is sending these notifications, what’s required from you, and how to ensure you stay compliant—no matter which corner of the world you now call home.

South African tax news and notifications: Why is this happening now?

South Africa’s tax laws and enforcement practices have become more robust since March 2021, and SARS now requires up-to-date documentation for anyone seeking non-resident tax status. The Notice of Non-Resident Tax Status—essential for proving your tax status—only became available from October 2021 onward. Anyone whose affairs were processed before this is being asked to revisit and formalise their tax status.

If you informed SARS you were emigrating between March 2021 and October 2021—the period when SARS was updating its systems—you may be required to resubmit your cessation application to bring your paperwork in line with current requirements.

Why is SARS sending these notifications?

SARS has begun a rigorous process of updating its records to ensure taxpayers’ residency statuses are correctly reflected. More specifically, SARS is contacting South Africans who have left the country but whose tax residency status is still unclear or incomplete in the current system. Many of these notifications are triggered by third-party reporting, so even if you haven’t lived in South Africa for years, you may still be on SARS’s radar.

A key point to understand; formal emigration through the South African Reserve Bank (SARB) pre-2021 is not the same as completing tax emigration with SARS. If you only did a SARB formal emigration and didn’t formally cease your tax residency with SARS, SARS considers you a tax resident—regardless of where you live or work.

What do these letters look like?

To provide peace of mind and clarity, here’s an excerpt illustrating the kind of correspondence SARS is currently sending to expats:

“NOTICE OF NON-RESIDENT TAX STATUS
The South African Revenue Service (SARS) confirms that the following taxpayer is a non-resident:
Date from which the taxpayer became a Non-Resident: [Date]
Kindly notify SARS of any change to your status or any registered particulars within 21 business days of such change.”

This confirmation of tax non-residency will only be provided after SARS receives and approves the necessary supporting documentation.

Who is likely to receive a SARS notification?

While every letter is tailored to the individual, SARS is currently focused on several broad groups:

• Expats who never completed SARS tax cessation: You may have left South Africa but never filed for cessation of tax residency with SARS
• Former SARB formal emigrants (Pre-2021): If you undertook formal emigration with SARB before March 2021. You are now required to do an additional SARS tax emigration.
• Expats claiming Double Tax Agreement (DTA) exemption: If you claimed tax non-resident status based on a DTA, you may need to resubmit your cessation application each year until you can demonstrate you’re no longer “ordinarily resident” in South Africa.
• Returnees: If you previously ceased to be a tax resident but have since returned to South Africa (even temporarily) without formally reinstating your residency status, SARS may request clarification.

Received a SARS Letter? Here’s what to do next

First, don’t panic. These SARS notifications are requests for information and documentation, not penalties or fines. Here’s how you should respond:

1. Read the notification carefully

• Identify which documents SARS is requesting. These typically include proof of permanent residence abroad, your foreign tax residency certificate, your visa, property or lease agreements, and evidence that you have physically left South Africa for an extended period.

2. Check your SARS tax status even if you haven’t received a letter

• If you’ve never submitted a Cessation of Tax Residency application with SARS or haven’t received official non-resident confirmation, it’s wise to check your records and act before you’re contacted.

3. If you only did formal emigration through SARB

• You must still complete the SARS process. SARB’s former requirements and SARS’s current tax laws are separate, so it’s crucial to close the loop directly with SARS.

Becoming a Non-Resident for South African tax: What’s involved

The process for achieving non-resident tax status includes several key steps:

1. Gather required supporting documents

• Proof you’re no longer “ordinarily resident” in South Africa (for example, overseas property ownership, long-term visas, work permits, or evidence of a permanent home abroad
• Foreign tax residency certificates from the country where you now live, foreign tax registration, foreign tax assessments etc.
• A detailed timeline of your movements (if required)
• Documentation about your financial ties to South Africa

2. Complete the Cessation of Tax Residency application

• Go through SARS eFiling (or consult a professional who can help manage the process)
• Declare your circumstances and supply all requested evidence

3. Respond to SARS requests

• SARS may follow up for additional information or clarification. Prompt and complete responses will help ensure your case is processed without unnecessary delay.

4. Await confirmation

• Once satisfied, SARS will issue the “Notice of Non-Resident Tax Status” to formally confirm your new position for tax purposes.

Tip: If you cease tax residency, be sure you’re aware of the deemed capital gains tax (“exit tax”) implications and include all required supporting documents with your final South African tax return.

Why staying tax compliant with SARS is critical

Failing to complete formal cessation procedures could see you:

• Still being considered tax resident, and thus taxed on worldwide income
• Facing unexpected administrative penalties and interest
• Limiting future withdrawals of South African retirement funds (which only become accessible after three years of confirmed non-residence)
• Experience difficulty to transfer money from South Africa

With ongoing SARS initiatives to match third-party data, cases of undeclared income or incomplete paperwork can quickly be flagged—so it’s better to be proactive.

Bottom Line:

Take documentation requests from SARS seriously, but don’t let them keep you up at night. With proper information and the right help, staying compliant is achievable. If you need guidance or a full review of your situation, let’s chat—you don’t have to navigate this alone.

How FinGlobal supports you

We understand that dealing with SARS and cross-border finances can feel daunting—especially when regulations change and communication can seem technical or intimidating. That’s why we offer:

• Thorough assessments of your current tax residency position
• Hands-on application support for Cessation of Tax Residency and SARS documentation
• Assistance in managing communications with SARS to avoid misunderstanding or delay
• Strategic advice to help you plan future moves, like withdrawing from retirement annuities or transferring assets, in line with the latest tax rules

If you’ve recently received a SARS notification or simply want to ensure your affairs are sorted, feel free to reach out for a complimentary consultation. We’ll walk with you every step of the way and ensure your interests are protected – no matter where you are in the world.