{"id":89581,"date":"2025-09-11T11:11:50","date_gmt":"2025-09-11T11:11:50","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad"},"modified":"2025-09-11T11:14:13","modified_gmt":"2025-09-11T11:14:13","slug":"sars-targets-south-africans-living-abroad","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad","title":{"rendered":"SARS Targets South Africans Living Abroad"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; South-Africa. <\/strong><\/span>Experts warned that South Africans moving abroad must formally cease tax residency with SARS through the updated tax emigration process to avoid global tax liabilities, access retirement savings and ensure compliance.<\/p>\n<p>Process Specialists of Expatriate Tax at Tax Consulting SA, Shuanita de Wet and Bronwyn Jacob, said many South Africans are unaware that when they move abroad, their tax obligations at home will continue to follow them.<\/p>\n<p>If they want to end their South African tax obligations, they need to formally cut tax ties with the South African Revenue Service (SARS).<\/p>\n<p>\u201cCeasing to be a South African tax resident with SARS is a critical step for expatriates who do not intend to return home,\u201d De Wet and Jacob said.<\/p>\n<p>\u201cThe permanent tax residency cessation process, known as financial or tax emigration, ensures that individuals are no longer classified as South African tax residents.\u201d<\/p>\n<p>Expats remain liable for tax on their global income and assets, even if they live halfway across the world and have done so for many years, until they complete this process.<\/p>\n<p>According to SARS data, nearly 38,000 South Africans living abroad have completed the process of changing their tax residency status to that of a non-resident taxpayer.<\/p>\n<p>However, De Wet and Jacob pointed out that this is only a fraction of the estimated 915,000 South Africans who currently reside outside the country.<\/p>\n<p>Tax professionals suggest that this gap exists for two main reasons. The first is due to the confusion about the correct process for formally severing tax ties with South Africa.<\/p>\n<p>The other is that many South Africans may be under the misconception that physically leaving the country automatically ends their tax obligations.<\/p>\n<p>\u201cThis is where tax emigration becomes crucial,\u201d they said. South Africa has a residency-based tax system, meaning:<\/p>\n<p>Non-residents are taxed only on South African-sourced income<\/p>\n<p>Tax residents are taxed on their worldwide income<\/p>\n<p>\u201cIt is clear that being classified as a South African tax resident may result in unintended tax liabilities, including on foreign income and assets,\u201d they said.<\/p>\n<p>\u201cIt is essential that SARS\u2019 system reflects your correct tax residency status, and it is up to you as the taxpayer to ensure this is the case.\u201d<\/p>\n<p><b>Assumptions can be dangerous<\/b><\/p>\n<p>According to De Wet and Jacob, expats who emigrated before March 2021 may be surprised to learn that they are still classified as tax residents on the SARS eFiling system.<\/p>\n<p>This is the case even for those who may have jumped through every hoop to cease South African tax residency, including securing their Emigration Tax Clearance Certificate (ETCC), a stamp of approval from the South African Reserve Bank (SARB).<\/p>\n<p>\u201cThat is because under updated SARS regulations, none of these previous steps apply,\u201d they said. To change a tax residency status to that of a non-resident, they must now formally declare the date of cessation through the current process.<\/p>\n<p>\u201cThe only official proof of non-tax resident status after March 2021 is the Non-Resident Tax Status Confirmation Letter issued by SARS. SARS is effectively resetting the system, and it is essential to act,\u201d they said.<\/p>\n<p>De Wet and Jacob stressed that those who fail to align with the new process risk being reverted to tax residents, with possible non-compliance and tax penalties to follow.<\/p>\n<p>However, there are benefits for expats who have ceased their tax residency under the new SARS rules.<\/p>\n<p>South African expatriates who have completed the process and have the SARS Non-Resident Tax Status Confirmation Letter are eligible to benefit from the \u201c3-year lock-up\u201d rule.<\/p>\n<p>This governs the early withdrawal of retirement annuities and pension interests still held in South Africa.<\/p>\n<p>This regulation stipulates that individuals must be classified as non-resident taxpayers for tax purposes for at least three consecutive years before making an early lump sum withdrawal of their full retirement and pension.<\/p>\n<p>\u201cIn addition to the above, this non-residency status must be substantiated by demonstrating minimal physical presence in South Africa,\u201d Jacob and De Wet said.<\/p>\n<p>\u201cOnce these conditions are satisfied, the financial institution administering your retirement policy may process the withdrawal request.\u201d<\/p>\n<p>The good news, De Wet and Jacob said, is that SARS allows those applying to cease tax residency to backdate cessation to the time the taxpayer\u2019s intent to remain abroad became clear, as long as there is credible evidence.<\/p>\n<p>For expatriates who have been living abroad and meet the requirements, this opens the door for:<\/p>\n<p>Early access to retirement and pension savings held in South Africa<\/p>\n<p>Protecting these funds from unnecessary taxation by applying for tax relief under an applicable Double Taxation Agreement (DTA) between South Africa and the new country of residence<\/p>\n<p>\u201cTaking timely and appropriate action ensures compliance and secures access to financial entitlements while protecting your future abroad,\u201d De Wet and Jacob said.<\/p>\n<p><strong>For More News And Analysis About <span style=\"color: #ff6600\">South-Africa<\/span> Follow <span style=\"color: #ff6600\">Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; South-Africa. Experts warned that South Africans moving abroad must formally cease tax residency with SARS through the updated tax emigration process to avoid global tax liabilities, access retirement savings and ensure compliance. Process Specialists of Expatriate Tax at Tax Consulting SA, Shuanita de Wet and Bronwyn Jacob, said many South Africans are unaware [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":89580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[275],"class_list":["post-89581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-south-africa-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SARS Targets South Africans Living Abroad - South Africa<\/title>\n<meta name=\"description\" content=\"Experts warned that South Africans moving abroad must formally cease tax residency with SARS through the updated tax emi ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SARS Targets South Africans Living Abroad\" \/>\n<meta property=\"og:description\" content=\"Experts warned that South Africans moving abroad must formally cease tax residency with SARS through the updated tax emi ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-11T11:11:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-11T11:14:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/09\/sm_1757576631.552108.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"SARS Targets South Africans Living Abroad\",\"datePublished\":\"2025-09-11T11:11:50+00:00\",\"dateModified\":\"2025-09-11T11:14:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\"},\"wordCount\":803,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/09\/sm_1757576631.552108.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-targets-south-africans-living-abroad\",\"name\":\"SARS Targets South Africans Living Abroad - 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