Living abroad as a South African expat comes with a lot of perks – new experiences, exciting career opportunities, and a change of scenery. But there’s one thing you can’t leave behind: your tax responsibilities back home. Even if you’re earning your income overseas, the South African Revenue Service (SARS) may still expect you to file an income tax return in South Africa.
So, what happens if you’re not subject to auto assessment by SARS? And why does it matter for expats? Let’s break it down.
Who needs to submit a South African income tax return from abroad?
Many taxpayers are subject to automatic assessment by SARS every year, especially if their income is fully captured through payroll, interest, or other reported sources. But for many expats, things aren’t that simple. If you’re earning foreign income, renting out property back home, or have investments, you may fall into the category of taxpayers who must submit a non-resident tax return in South Africa.
Even if it seems like “nobody’s watching,” SARS has eyes everywhere, so staying on top of your taxable income in South Africa is critical. Being compliant with the South African taxation system is the only way to avoid penalties, interest, and unnecessary headaches if you ever return home.
Read more: Warning – SARS is monitoring South African expats abroad who want to return home.
Understanding non resident tax filing in South Africa – what’s the deal?
When you file as a non-resident, it’s important to understand how South African taxation works for residents versus non-residents. In South Africa:
- Residents are generally taxed on their worldwide income. That means any money you earn—locally or abroad—is potentially subject to income tax in SA, although foreign income may be exempt under certain conditions or double taxation agreements. Residents report all taxable income in South Africa, including salaries, investment income, rental income, and capital gains.
- Non-residents, on the other hand, are only taxed on income sourced in South Africa. This includes:
– Income from a South African employer or business.
– Rental income from property located in South Africa.
– Interest or dividends paid by South African entities.
– Capital gains from South African assets.
As a non-resident, foreign-earned income is usually not taxable in South Africa, but it still needs to be disclosed in your non-resident tax filing if relevant for reporting purposes. Understanding the difference between resident and non-resident obligations helps prevent overpaying or underreporting tax and ensures compliance with the South African taxation system.
Read more: Tax implications for South African expats – declaring your worldwide assets and foreign income.
Paperwork requirements – key forms you may need include:
- ITR12: The main individual tax return form for both residents and non-residents.
- IRP5: Your employer-issued certificate detailing local income and tax withheld.
Even if your foreign income isn’t taxable in SA, filing correctly demonstrates compliance and keeps your record with SARS clean – which is a must for any expat thinking about returning home in the future.
Read more: Emigration essentials – top tips from the experts for filing your final South African tax return.
How to submit your SARS tax return online
The good news? Filing from abroad is easier than ever thanks to SARS eFiling. Here’s how to make it painless:
- Register for eFiling – if you don’t have a South African Revenue Service eFiling account, set one up on the official SARS site.
- Login – access your account via eFiling login or South African Revenue Service login.
- Complete the ITR12 – the platform walks you through declaring income, deductions, and credits.
- Include all income – local and applicable foreign income counts, so nothing slips through the cracks.
- Submit on time – ensure you meet SARS deadlines to avoid penalties.
Knowing how to correctly submit tax returns online is key. Mistakes or omissions can trigger audits and costly interest, which no expat wants to deal with from thousands of miles away.
Read more: SARS streamlines tax filing process on eFiling for South Africans working abroad.
South African expat tax and what they mean
Understanding South Africa’s tax scale and your potential liability is simpler than it sounds. South Africa’s tax system is progressive, meaning the rate rises with your taxable income. As a non-resident, you’re generally only taxed on South African-source income, but staying informed about income tax in SA ensures you never accidentally underreport or miss your filing obligations.
The South African tax year – timing matters
The tax filing season in South Africa usually runs from July to November, but non-residents and manual filers may have slightly different deadlines. If SARS hasn’t sent you an auto assessment, it’s up to you to file proactively. Being late can mean unnecessary penalties or interest, so it’s worth staying ahead.
Check your South African Revenue Service login or efiling login regularly and update your contact details so SARS can reach you. This is a simple way to protect yourself from missed notices while living abroad.
Read more: South African working abroad? How to handle foreign income on SARS tax return.
Common mistakes to avoid when filing your taxes from abroad
Even well-intentioned expats can trip up when filing:
- Forgetting to declare foreign income or investments that South Africa considers taxable.
- Using outdated ITR12 forms or submitting incomplete returns.
- Misunderstanding deductions or incorrectly claiming them.
- Ignoring SARS communications because your overseas contact info isn’t updated.
Avoiding these pitfalls keeps your tax record clean and ensures you remain fully compliant with the South African taxation system.
Read more: Top tips for staying under the radar with SARS.
FinGlobal: tax specialists for South Africans abroad
Managing taxes across borders is complicated, and mistakes can be costly, so don’t risk being caught off guard by SARS. FinGlobal helps South African expats meet their international tax obligations, from filing your last tax return as a resident, to tax emigration and tax clearance, and obtaining your Non-Resident Confirmation Letter from SARS, so you can cash in your retirement annuity in full.
Take the stress out of cross-border taxes, reach out to FinGlobal today for a free consultation and get clarity on your tax compliance status with SARS.
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