SARS Update for South African Expats

New Compliance Requirements for Non-Resident Taxpayers

SARS has updated its Registration, Amendments, and Verification (RAV01) form on eFiling, requiring more detailed disclosures from South African expatriates. These changes aim to tighten compliance and improve tracking of tax residency status.

Key Changes You Need to Know

• Residency Cessation: Expats must now specify the legal basis for ceasing tax residency – either under the Ordinarily Resident Test or a Double Tax Agreement (DTA).

• Residency Reinstatement: Returning expats must declare the exact date they resumed South African tax residency in the RAV01 form.

• Lifecycle Tracking: SARS can now monitor both the cessation and resumption of residency, enabling retrospective reviews.

Why This Matters

• Incorrect Declarations: Errors or vague disclosures could lead to SARS reinstating residency status retroactively, with potential penalties.

• Silent Returns Risk: Previously, expats could quietly resume residency. Now, failure to formally reinstate may trigger audits and back taxes on global income.

Our Perspective

These changes reflect SARS’s intent to scrutinise non-residency claims more closely. We agree with the growing view that SARS may use this data to reassess past non-residency periods.

Another significant update is the inclusion of the legal basis for non-residency in the Notice of Non-Resident Tax Status. This is critical, as the implications of a DTA-based claim differ from those under the ordinarily resident test – especially when returning to South Africa.

However, issues could arise when SARS issues notices on the wrong legal basis, contradicting the taxpayer’s application. For example, a DTA-based application might result in a notice citing the ordinarily resident test instead. This could create serious tax complications upon return – through no fault of the taxpayer. It is very important for SA expats to understand the term ordinarily resident. You can visit our previous newsletter here for a simple flowchart you can use to determine whether you are SA tax resident.

We hope SARS will acknowledge and correct such administrative errors to avoid unfair consequences.

How we can help

Navigating SARS’s evolving tax residency rules can be complex and high stakes. Whether you’re planning to leave, return, or simply want peace of mind, we’re here to help you stay compliant and protected. With the right advice at the right time, you can avoid expensive surprises. Get in touch for our best advice.