Moving abroad is exciting, but there’s one thing that doesn’t pack up and leave with you: your tax obligations back home. Many South African expats are surprised to learn that owing money to the South African Revenue Service (SARS) doesn’t just disappear once you’ve left the country. If you’ve received a SARS debt notification or you’re worried you might have a SARS tax debt, take a deep breath; there are steps you can take to sort things out.
Let’s unpack what happens when you owe SARS money, how to check your SARS tax debt balance, and the tax debt relief options available to get back on track.
Why you must take SARS tax debt seriously
Owing money to SARS is not like owing money to a bank. Tax debt is governed by the Tax Administration Act, and non-payment can trigger penalties, interest, and even legal action. A SARS debt notification should never be ignored. If left unresolved, SARS may appoint third parties—like your bank or employer—to settle your debt on your behalf, or they may hand over your account to SARS debt collectors.
Read more: Working abroad, taxed at home – why your South African tax residency still matters.
Does SARS tax debt expire or prescribe?
No—SARS tax debt does not automatically expire like ordinary consumer debt. Even if you’ve left South Africa, unpaid taxes remain valid, and interest and penalties continue to accrue until the debt is fully settled or successfully compromised.
SARS can pursue collection indefinitely, including through cross-border tax debt collection for expats. The only way to reduce or “write off” a tax debt is by engaging with SARS through a payment arrangement, tax debt compromise, or a successful dispute. Ignoring your debt only increases penalties and the risk of legal action, so addressing it proactively is essential.
Read more: SARS intensifies efforts to recover outstanding taxes, including from South Africans abroad.
Step 1: Do a SARS debt check
Before you can resolve anything, you need to know exactly how much you owe. SARS makes it easy to run a SARS debt check:
- eFiling or the SARS MobiApp: Log in to view a statement of account.
- SMS: Send a message to 47277.
- USSD: Dial *1347277# and follow the steps.
- Call the SARS Contact Centre: +27 11 602 2093 if you’re abroad.
Getting clarity on your outstanding SARS tax debt balance helps you take the right next step.
Step 2: Submit all outstanding SARS tax returns
Sometimes SARS tax debt results from missing returns rather than actual unpaid tax. Make sure all your filings are up to date. If you’ve already emigrated, you may still need to file one last tax return depending on your tax residency status.
Read more: Why should I submit SARS tax returns if I have ceased my tax residency?
Step 3: Communicate with SARS
One of the worst things you can do is go silent. SARS has a structured process for SARS debt management, and engaging early shows a willingness to resolve the issue. If you ignore their letters, calls, or a SARS debt notification, the case can quickly escalate to formal SARS debt collectors or legal action.
Step 4: Explore SARS tax debt relief options
If you can’t pay the full amount immediately, you may qualify for tax debt relief in South Africa. These include:
1. SARS payment arrangement:
You may request to pay your SARS tax debt in instalments. This requires submitting a financial disclosure (Collection Information Statement) showing why you can’t settle in one go. SARS will review your affordability before agreeing.
2. SARS Tax debt compromise program
In certain cases, SARS offers a tax debt compromise program, which allows you to settle for less than the full amount owed. This is usually considered where paying in full would cause financial hardship. Successful applications must include detailed motivation and supporting documents.
3. SARS deferment of payment
If your financial difficulty is temporary, you may qualify to delay your payment, though interest will continue to accrue. These options fall under SARS debt compromise or SARS debt management, and working with a professional tax advisor can improve your chances of a favourable outcome.
Read more: Looking into compromise of tax debt – the only way to cut SARS tax debt, without cutting corners.
Step 5: Know your rights if you dispute the SARS tax debt
If you believe the SARS tax debt is incorrect, you can object. While the dispute is being considered, you may request a suspension of payment obligations. Keep in mind, however, that interest may still accumulate.
Read more: How long does SARS take to respond to disputes?
What happens if you can’t pay your tax debt in South Africa?
This is one of the most common questions. If you cannot pay your SARS tax debt in South Africa, SARS has several collection powers to use against you:
- They can attach funds directly from your bank account.
- They may issue a summons for debt in South Africa, which can lead to judgments against you.
- They can seize assets or, in extreme cases, institute sequestration or liquidation proceedings.
Read more: Understanding the impact of SARS’s ability to access retirement savings for tax debt recovery.
Cross-border SARS debt collection – can SARS collect tax debt from South African expats living abroad?
Yes, SARS can collect tax from you, even after you’ve emigrated. Expats often assume that once they leave the country, SARS can’t pursue them. This is not true. Through international agreements, SARS cross-border tax debt collection is possible. South Africa works with foreign tax authorities to track income, assets, and taxpayers abroad.
In short, cross-border tax debt collection means there’s no hiding from SARS by way of skipping the country. The best strategy is to deal with your tax affairs upfront and avoid unpleasant surprises later.
List of SARS debt collectors
SARS sometimes outsources recovery efforts to external agencies. The official list of SARS debt collectors is published on their website, and taxpayers should be wary of scams. If you receive a call or letter from a debt collection agency, confirm that they are authorised before engaging.
How to avoid future tax debt
The simplest way to avoid tax complications is to stay compliant:
● File on time: Even if you owe nothing, submit your returns.
● Pay when due: If you’re wondering when to pay tax in South Africa, the general deadline is determined by your filing category (individual, provisional, or company). For expats, this depends on your residency status.
● Stay informed: Know your obligations and seek advice if your circumstances change.
Read more: Top tips for staying under the radar with SARS.
FinGlobal: expat tax compliance specialists for South Africans
Don’t let SARS tax debt or cross-border compliance issues disrupt your life abroad. From tax emigration to retirement annuity withdrawal and foreign exchange, FinGlobal’s specialists handle it all—securely and compliantly. Get expert help today and move forward with confidence.
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