South Africans living overseas are not off the hook from SARS e-filing

Some South Africans living overseas who do not submit their annual tax returns risk being hit with penalties and interest.

With the 2026 tax filing season underway, South African expatriates should note that they may still be required to file annual tax returns with the South African Revenue Service (SARS).

According to Tax Consulting South Africa’s Team Lead of Cross-Border Taxation, John-Paul Fraser, and Expatriate Tax Consultant, Vivian Cox, this applies even after years of living and working abroad.

Many expatriates assume that relocating overseas automatically removes them from the South African tax system, but this is often not the case.

Whether an expatriate is required, under Section 25 of the Tax Administration Act 28 of 2011, to submit a return depends on a range of factors.

These include their tax residency status, the nature and source of their income, and whether they continue to hold financial interests in South Africa.

For some time now, SARS has been strengthening its compliance capabilities and increasing visibility over offshore structures and international income.

As such, expatriates should take the opportunity to review their filing obligations and confirm whether they are required to file a return.

Failing to meet a filing obligation can result in penalties and interest accruing quickly, Fraser and Cox warned.

Physical relocation abroad does not, in itself, bring an end to a taxpayer’s relationship with SARS. The key consideration is whether the individual has formally ceased to be a South African tax resident.

Where this has not occurred, SARS may still regard the person as a South African tax resident, which can result in ongoing reporting obligations on worldwide income and assets.

For expatriates who are still South African tax residents on SARS’ records, offshore income and foreign assets remain highly relevant for tax compliance. This may include:

• Foreign employment income
• Offshore investment portfolios
• Interests in foreign trusts or companies
• Overseas bank accounts
• International retirement structures

Where foreign assets exceed prescribed thresholds, or where offshore income is attributed under South African tax legislation, SARS may still require detailed disclosure in an annual tax return.

Controlled Foreign Company (CFC) rules can also create additional complexity, Fraser and Cox explained.

South African expatriates who retain ownership interests in offshore companies may still be subject to reporting requirements and, in some cases, tax implications in South Africa.

Income thresholds are not a blanket exemption

While SARS provides certain income thresholds below which individuals may not need to file, Fraser and Cox said expatriates often misunderstand these exemptions.

For the 2026 filing period, individuals under 65 generally fall within the filing threshold once gross income exceeds R95,750.

The thresholds increase to R148,217 for taxpayers aged 65 to 74, and R165,689 for those aged 75 and older. However, these thresholds apply only in limited circumstances and do not override other filing triggers.

If an expatriate receives foreign income, earns rental income, disposes of South African assets, carries on trade, or retains specific offshore structures, a return may still be required regardless of income level.

Fraser and Cox also stressed that even where an individual has formally ceased to be a South African tax resident, filing obligations do not necessarily disappear entirely. Non-residents may have to file tax returns where they:

• Earn South African-sourced income
• Receive rental income from South African property
• Dispose of immovable property in South Africa
• Trigger capital gains tax on local assets
• Receive specific instructions from SARS to submit returns

This is particularly important for expatriates who believe that financial emigration or non-resident status completely removes them from the South African tax system.

While it may reduce exposure, Fraser and Cox cautioned that it does not automatically eliminate compliance obligations.

Expats still have a SARS responsibility

Unfortunately, Fraser and Cox noted that too many South Africans abroad only discover unresolved tax obligations years later.

This often happens when attempting to access retirement funds, regularise their tax affairs, transfer capital offshore, finalise non-resident tax status, and respond to SARS verification requests.

“By this stage, administrative complications, penalties, and compliance risks may already have escalated significantly,” they said.

Some expatriates may receive a SARS auto-assessment and assume no further action is required, Fraser and Cox said.

“While SARS may issue these assessments where sufficient third-party data is available, offshore income and international assets are not always fully captured in its records,” they said.

“This poses a significant risk for individuals with foreign employment income, offshore investments, international pension structures, foreign bank accounts, or overseas business interests.”

Despite the auto-assessment system, they stressed that the responsibility remains with the taxpayer to ensure that all relevant disclosures are complete and accurate.

Where a filing obligation exists, expatriates remain subject to standard SARS submission deadlines. For the 2026 filing season:

• Individual taxpayers generally need to file by 23 October 2026
• Provisional taxpayers must submit by 22 January 2027
• Trusts follow the same 22 January 2027 deadline
• Companies must file within 12 months of the financial year-end

These timelines can become particularly challenging for expatriates who are simultaneously managing tax obligations across multiple jurisdictions.

“For South African expatriates, the key takeaway is clear,” Fraser and Cox said. “Physically leaving South Africa does not automatically terminate SARS filing obligations.”