Finance

SARS auto assessment warning for anyone who has left South Africa

Staff Writer

 ·6 Jul 2026

South African expats have been warned that they may still have tax obligations back home, even if they have been living and working outside the country for years—and an auto assessment doesn’t clear them, either.

According to tax experts at Tax Consulting SA, many expats assume that relocating overseas automatically removes them from the South African tax system, but this is not the case.

However, whether they are required to submit a return depends on a range of factors.

These include their tax residency status, the nature and source of their income, and whether they continue to hold financial interests in South Africa.

“Physical relocation abroad does not, in itself, bring an end to a taxpayer’s relationship with SARS,” the group said.

“The key consideration is whether the individual has formally ceased South African tax residency.”

Where an expat has not explicitly ended their tax residency, SARS may still regard the person as a South African tax resident, which can result in ongoing reporting obligations on worldwide income and assets.

For expats who are still South African tax residents on SARS’ records, offshore income and foreign assets become critical considerations.

This includes:

• Foreign employment income
• Offshore investment portfolios
• Interests in foreign trusts or companies
• Overseas bank accounts
• International retirement structures

Where foreign assets exceed prescribed thresholds, or where offshore income is attributed under South African tax legislation, SARS may still require detailed disclosure in an annual tax return.

Tax Consulting noted that Controlled Foreign Company (CFC) rules also create additional complexity.

South African expats who retain ownership interests in offshore companies may still be subject to reporting requirements and, in some cases, tax implications in South Africa.

While SARS does provide certain income thresholds below which individuals may not need to file, expatriates often misunderstand these exemptions, Tax Consulting said.

For the 2026 filing period, individuals under 65 generally fall within the filing threshold once gross income exceeds R95,750.

The thresholds increase to R148,217 for taxpayers aged 65 to 74, and R165,689 for those aged 75 and older.

However, these thresholds apply only in limited circumstances and do not override other filing triggers.

If an expat receives foreign income, earns rental income, disposes of South African assets, carries on trade, or retains specific offshore structures, a return may still be required regardless of income level.

Auto assessments won’t clear you

Even where an individual has formally ceased to be a South African tax resident, filing obligations do not necessarily disappear entirely, Tax Consulting said.

Non-residents may have to file South African tax returns where they:

• Earn South African-sourced income
• Receive rental income from South African property
• Dispose of immovable property in South Africa
• Trigger capital gains tax on local assets
• Receive specific instructions from SARS to submit returns

“This is particularly important for expatriates who believe that financial emigration or non-resident status completely removes them from the South African tax system,” it said.

“While it may reduce exposure, it does not automatically eliminate compliance obligations.”

The tax experts noted that many South Africans abroad only discover unresolved tax obligations years later when attempting to access retirement funds, regularise their tax affairs, transfer capital offshore, finalise non-resident tax status and respond to SARS verification requests.

By this stage, administrative complications, penalties, and compliance risks may already have escalated significantly.

Adding to this, the group warned that auto-assessments won’t clear these taxpayers of their obligations.

“Some expatriates may receive a SARS auto-assessment and assume no further action is required,” Tax Consulting said.

“While SARS may issue these assessments where sufficient third-party data is available, offshore income and international assets are not always fully captured in its records.“

This poses a significant risk for individuals with foreign employment income, offshore investments, international pension structures, foreign bank accounts, or overseas business interests.

Despite the auto-assessment system, the responsibility remains with the taxpayer to ensure that all relevant disclosures are complete and accurate, it said.

Where a filing obligation exists, expatriates remain subject to standard SARS submission deadlines.

Failing to meet a filing obligation can result in penalties and interest accruing quickly, the experts said.

Tax season 2026 dates