For many South Africans living abroad, dealing with the South African Revenue Service (SARS) is something they assume belongs firmly in the past. After all, once you have emigrated, surely your South African tax affairs simply fade away too?
Unfortunately, that is not how the system works.
One of the most common — and most frustrating — problems affecting expats today is when they run into issues relating to a dormant SARS tax number or an inactive tax number. Often unnoticed for years, this unpleasant surprise usually only surfaces when an individual tries to formally cease South African tax residency, apply for an Approval of International Transfer, or obtain a Tax Compliance Status PIN.
At that point, what seemed like a minor administrative issue can quickly escalate into a major headache.
Top 3 takeaways for South African expats on SARS tax numbers
- A dormant SARS tax number can stop your financial plans in their tracks. If your tax profile is inactive, SARS may block important processes such as tax residency cessation (tax emigration), offshore transfer approvals, and Tax Compliance Status PIN applications needed to move money abroad legally.
- Before SARS will process a tax emigration application, your tax affairs must be fully up to date. This means your SARS profile needs to be active, accessible on eFiling, and fully compliant with all outstanding tax returns, identity verification requirements, and supporting documentation.
- Many South African expats only discover they have an inactive SARS profile after an application has already been rejected or delayed. Checking your SARS status early and completing any necessary SARS tax number reactivation upfront can help you avoid unnecessary delays, penalties, and complications later in the process.
Read more: Reality check: Leaving South Africa doesn’t always mean leaving SARS behind.
What is a dormant or inactive SARS tax number?
An inactive or dormant tax number means that SARS has restricted or deregistered the taxpayer’s profile, preventing key tax processes from moving forward.
This commonly happens when:
- Tax returns have not been submitted for several years
- Personal information or contact details are outdated
- SARS cannot verify the taxpayer’s identity
- The taxpayer profile has been deregistered due to inactivity
- Access to the taxpayer’s SARS eFiling profile has lapsed
In practice, this means the taxpayer’s profile becomes blocked until the issue is resolved. For South African expats abroad, this can create serious complications because SARS will not process important applications while the profile remains inactive.
Why an inactive tax number creates major problems
A dormant SARS tax number does far more than simply block access to SARS eFiling.
An inactive profile can prevent taxpayers from:
- Ceasing tax residency in South Africa
- Applying for offshore transfer approvals
- Obtaining a Tax Compliance Status PIN
- Updating banking or contact details with SARS
- Accessing their SARS eFiling account
- Authorising a tax practitioner to act on their behalf
Simply put, an inactive SARS profile brings everything to a grinding halt.
Many expats only discover the problem after receiving a rejected application or facing unexpected delays while trying to move money offshore or regularise their South African expat tax affairs.
Why an inactive SARS tax number must be resolved first
Before SARS will even consider a South African tax residency cessation application (aka tax emigration) the taxpayer’s profile must be fully active, compliant, and accessible.
In practice, this means any issues causing a restriction on the SARS profile must first be resolved so that SARS can properly review the individual’s tax affairs.
This usually means:
- Verifying the taxpayer’s identity with SARS
- Restoring full access to SARS eFiling
- Updating personal, banking, and contact details
- Submitting outstanding tax returns where required
- Resolving penalties or non-compliance issues
- Confirming overall tax compliance status
Without ensuring all of these ducks are in a row, SARS cannot fully assess the taxpayer’s position or proceed with a tax emigration application. As a result, any attempt to cease South African tax residency while the profile is still inactive or restricted is likely to lead to delays, rejections, or requests for additional information.
In short, resolving the underlying compliance and access issues is not optional — it is a necessary first step before any formal tax emigration process can proceed.
Read more: SARS Tax Diagnostic: creating a clear path for expats and emigrants.
Distance and time zones: the added challenge for expats abroad
For South Africans living overseas, resolving an inactive tax number issue can become even more complicated.
In many cases, SARS requires identity verification to be completed in person at a Sars branch. While this may be inconvenient for local taxpayers, it presents a major challenge for expats living abroad. Securing a SARS branch appointment from another country is often difficult, and travelling back to South Africa purely for administrative purposes is rarely practical or cost-effective.
This is why many expats rely on specialist tax practitioners to assist with the process.
Through a properly executed SARS Power of Attorney, a tax practitioner can often engage directly with SARS on the taxpayer’s behalf, facilitate document submissions, attend branch appointments where permitted, and help restore the taxpayer’s profile to active status.
Until this process is completed, no further progress can usually be made.
Why this matters before tax residency cessation
Formally ceasing South African tax residency are one of the most important financial steps for expats who permanently relocate abroad.
However, SARS will not process a tax emigration application unless the taxpayer’s profile is fully active and compliant.
Trying to bypass this step can lead to:
- Rejected applications
- Significant administrative delays
- Additional SARS penalties
- Delayed offshore transfers
- Increased scrutiny from SARS
- Potential complications relating to exit tax South Africa
Only by addressing dormant tax number issues upfront, can expats place themselves in a stronger position to complete the tax emigration process efficiently and without unnecessary complications.
Why dormant tax numbers are often overlooked
One reason this issue catches many expats off guard is because they mistakenly assume that leaving South Africa automatically ended their tax obligations.
In reality, SARS does not simply deactivate or close a taxpayer profile because someone emigrates. Unless taxpayers formally cease South African tax residency and maintain proper compliance, their tax profile remains active within the South African tax system — even if they have lived abroad for many years. Over time, prolonged inactivity or missing returns can cause the profile to become restricted or dormant.
Unfortunately, many expats only discover this years later when they need to transfer funds offshore, access retirement products, or finalise their non-resident tax status.
FinGlobal: specialist tax guidance for expats around the world
Dormant or inactive SARS tax numbers remain one of the biggest hidden obstacles affecting South African expats abroad. The good news is that these issues can usually be resolved with the correct professional guidance and a structured compliance approach.
The first step should always be confirming whether your SARS tax number is active, accessible, and compliant before attempting any offshore transactions.
At FinGlobal, we assist South Africans abroad with tax emigration, expat tax compliance, SARS tax number reactivation, offshore transfer approvals, and retirement annuity withdrawal matters. With the right support, you can restore your SARS profile, resolve compliance issues, unlock your South African funds and move forward with confidence — without avoidable delays or unnecessary complications.
To find out more about FinGlobal’s full suite of cross-border financial and tax solutions for South Africans abroad, leave your contact details below and one of our consultants will be in touch!