South Africans who have worked abroad and accumulated foreign retirement funds, or foreign nationals who become South African tax residents, need to urgently be aware that the South African Revenue Service (SARS) now wants taxing rights on their foreign retirement funds. This proposed amendment is set to come into effect on 1 March 2026.
In the complex world of payroll, many employers have historically taken a head-in-the-sand approach, particularly when it comes to the taxation of employee benefits. If you are not 100% confident that every fringe benefit in your payroll is correctly taxed, now is the time to act, as the South African Revenue Service (SARS) is clamping down on all forms of tax non-compliance.
On 28 July 2025 the South African Revenue Service (SARS) issued another notice specifically aimed at South Africans abroad concerning their tax residency status. It deals with how an individual who is a non-resident taxpayer on the SARS system, should complete their tax return this filing season.
The fact that millions of South African taxpayers withdrew R43 billion from their accessible retirement savings under the Two-Pot System in the previous tax year, and many are already dipping in again this year, clearly shows that employees need real-time financial relief.
With a debt book of R535,9 billion, SARS is looking for any means to expedite seamless collections! SARS can leverage Artificial Intelligence and data driven insights from 3rd party information, including processing of taxpayer bank statements without any prior warning, or consent.
A recent High Court decision should serve as a cautionary tale for any taxpayer who underestimates the procedural rigor required when challenging the South African Revenue Service (“SARS”).
The South African Revenue Service (SARS) is not beating around the bush with sharpening its focus on South African expatriate taxpayers as part of efforts to curb non-compliance that contributes to billions in lost tax revenue annually.
In a tightening economy, the South African Revenue Service (SARS) is under increasing pressure to collect every cent it can to shore up the South African fiscus. While many compliant businesses play by the rules, it is becoming clear that some large corporates are pushing the envelope too far—sometimes unintentionally, but often with eyes wide open.
South Africa continues to face an unforgiving economic climate. Households are grappling with rising costs of food, fuel, electricity, and school fees, while salary increases remain modest or frozen altogether. As many employees search for ways to stretch their income, one practical, cost-neutral solution stands out: flexible benefits.
Having had great success with its specialised tax compliance programmes over the last few years, SARS has now called in the cavalry this tax return filing season, through “Project AmaBillions”, to bolster its tax debt collection capabilities.