Being abroad won’t save you from SARS’ collection efforts
As the upcoming tax filing season approaches, the South African Revenue Service (SARS) is reportedly ramping up a major initiative aimed at recovering outstanding tax debt including from taxpayers living abroad.
John-Paul Fraser
Team Lead: Cross-Border Taxation
Mbalenhle Mahlaba
Expatriate Tax Specialist
Dubbed by insiders as a significant step toward closing the compliance gap, this special project is expected to raise an additional R70 billion over the next three years through intensified collection efforts, stricter enforcement, and broader taxpayer scrutiny.
This bold target reflects government’s urgent need to strengthen public finances amid mounting fiscal challenges and increased demand for essential public services. Although specific operational details remain confidential, SARS is on record that a comprehensive, multi-pronged strategy is being implemented—one that includes tracing non-compliant taxpayers across borders and leveraging global cooperation frameworks to enforce collection.
Inside “Project AmaBillions”: SARS Ramps Up Revenue Collection Efforts
SARS insiders refer to this revenue collection initiative as Project AmaBillions—a fitting name for a drive aimed at recovering billions of rands in outstanding taxes.
SARS Commissioner Edward Kieswetter has consistently highlighted the strategic importance of strengthening SARS into a capable and credible institution. “The revenue we collect is essential to funding the nation’s developmental agenda. Every rand matters, and we are committed to ensuring that everyone pays their fair share,” he said in recent public statements.
The revenue service has identified key focus areas in its intensified efforts: high-net-worth individuals, corporates, and sectors historically associated with non-compliance. Leveraging sophisticated data analytics tools, SARS is now better equipped to detect discrepancies in tax filings and uncover undeclared income.
Although the R70 billion revenue target may seem ambitious, analysts believe it is attainable—provided SARS maintains strong enforcement measures and preserves taxpayer morale. “What we’re seeing is a renewed determination at SARS to hold non-compliant taxpayers accountable, while also making it easier for compliant citizens to meet their obligations,” said tax expert Nomvula Dlamini.
KEY SARS INITIATIVES IMPACTING EXPATS:
SARS Ceasing of Tax Residency Process
This process is crucial for those looking to move and those who have moved abroad and no longer consider South Africa to be their tax residence. Until a formal application has been submitted to SARS to cease your tax residency, you will continue to be liable for tax on worldwide income and assets.
Ceasing tax residency means you are declaring to SARS that you are no longer a South African tax resident, which can significantly change how your global income is taxed. This process helps to avoid potential double taxation and ensures your status is correctly recorded in SARS systems.
To initiate this, individuals must submit a formal request to SARS by updating their status through the Registration, Amendments and Verification Form (RAV01) via the SARS eFiling platform. Supporting documentation is typically required, and SARS may request evidence demonstrating that you meet the requirements for non-residency based on the ordinarily resident or physical presence tests.
Foreign Employment Income Unit
SARS has established a dedicated Foreign Employment Unit. This unit is specifically tasked with monitoring South Africans working abroad to ensure that they remain compliant with tax obligations. This initiative forms part of SARS’s intensified focus on expatriates, especially those earning over R1.25 million annually.
The unit’s responsibilities include issuing the Notice of Non-Resident Tax Status confirmation letter and leveraging global financial information exchange systems to track income earned abroad. This initiative aims to enhance tax compliance among South African expatriates and ensure that foreign-earned income is appropriately taxed.
Third Party Data Sharing
SARS has significantly ramped up its efforts to identify non-compliant taxpayers through extensive third-party data sharing. This involves gathering data from various domestic and international sources, such as banks, retirement funds, medical insurance providers and property deeds offices, among others.
By leveraging this data, SARS uses machine learning models to detect discrepancies and non-compliance. For instance, the system can identify individuals with significant economic activity or hold substantial assets but who have not declared their full income.
Conclusion
Being abroad does not exempt South African taxpayers from SARS’ vigilant collection efforts. With advanced data-sharing agreements and sophisticated tracking systems, SARS ensures that expatriates remain compliant with their tax obligations. SARS is committed to identifying and addressing non-compliance, ensuring that all South Africans, regardless of their location, fulfill their tax responsibilities.
