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.

While Sars announced enhancements to this year’s ITR12 return is to make it easier for non-resident taxpayers to declare South African-sourced income, it does not address the critical issue of what will happen if their Sars profile does not match their non-resident tax status.

There are many South Africans abroad who think they are non-resident taxpayers, but this status is not reflected as such on the Sars system. 

With South Africa’s residency-based tax system, different tax rules apply to residents and non-residents with a significant difference in tax liabilities. Therefore, expatriates should urgently confirm their tax residency status before they submit their returns this filing season. 

This is crucial because even taxpayers who previously ceased tax residency by following the formal process of financial emigration and have records to show it, now find the Sars system may have reverted them back to being tax residents.

There are various reasons as to why one’s status can be reverted, but the important take-away for expatriates is that Sars will tax them according to the tax residency status on record. South Africans living and working abroad should not assume they are non-resident if that is not what is reflected on their eFiling profile. 

The correct legal document expatriates must have in their possession is the Sars issued Non-Resident Tax Status Confirmation Letter, introduced in 2021. This letter confirms cessation of tax residency indicating the effective date of ceasing tax residency in South Africa. With this letter you will protect your worldwide income from being taxed in South Africa.

The Sars note serves as a timely reminder to expatriates to check their non-residency tax status. With the filing deadline of 20 October 2025, this allows non-resident taxpayers enough time to obtain the Non-Resident Tax Status Confirmation Letter should their tax status on eFiling reflect incorrectly. With this letter in hand, you will be sure to file according to your status. 

South Africans abroad who are uncertain of how to check their status, should seek assistance from tax specialists. Completing a tax diagnostic as a first step, will provide an all-encompassing review of the taxpayer’s tax affairs and reveal any inconsistencies.

Tax Consulting South Africa’s approach ensures a safe and neutral check on taxpayers’ status, as the last thing you want, is checking tax residency status in a way that will trigger a Sars audit. With a direct ISV link to the Sars electronic system, one of only a handful tax firms in the country with this access, non-residents can have peace of mind that this exercise will not raise any flags at Sars.

If your status is indeed correctly reflected as non-resident, you can proceed with submitting your tax return – either a zero return or a return declaring your South African sourced income for the year of assessment.

Should the system incorrectly show your tax residency status, follow the process of requesting your Non-Resident Tax Status letter with a simple submission to Sars. Once issued, your details will be corrected on the Sars eFiling platform. 

With the guidance of an expert tax practitioner, this letter can be obtained within a reasonable time. Lately Tax Consulting have succeeded in obtaining a letter within three weeks, ensuring the non-resident taxpayer can submit the tax return without any concerns. 

Written by Mbalenhle Mahlaba (BCom Law & LLB), Expatriate Tax Specialist at Tax Consulting SA