The South African Reserve Bank (SARB) is implementing several changes to ensure tax compliance among South African ex-pats, says Tax Consulting SA.<\/p>\n
As part of the tax authority’s push toward increasing tax compliance among South African expats, it has turned to hiring more skilled staff – some of whom will be dedicated specifically to dealing with international tax and\/or audits.<\/p>\n
“SARS has implemented stricter audits and increased penalties for non-compliance, and the addition of 52 new vacancies to SARS staff suggests that SARS is planning to ramp up these efforts even further,” Tax Consulting SA said.<\/p>\n
The group said this might, in the future, lead to increased audits for expats.<\/p>\n
According to Tax Consulting SA, six vacancies are being dedicated to international tax and\/or audits:<\/p>\n
“The roles suggest that SARS is looking to enhance their human capital to better ensure, or enforce, all-round tax compliance, specifically focusing most of its resources on foreign money, like that of expatriates working offshore,” said Tax Consulting SA.<\/p>\n
The tax experts said that the tax authority is clearly looking for highly skilled candidates, and the criteria for most of the positions require very specific technical, behavioural and compliance competencies.<\/p>\n
“This shows that SARS is on a drive to ensure a high standard of compliance, professionalism and thoroughness from within,” said Tax Consulting SA.<\/p>\n
SARS has been on a massive overhaul in the past couple of years, focusing on ensuring tax compliance across the board.<\/p>\n
A recent change, announced during the 2022 budget speech, included a seemingly simple amendment to the tax laws, making it a requirement for expats working outside of South Africa to file a tax return regardless of their income level, so even those earning below the tax threshold are now required to submit a tax return to SARS, said Tax Consulting SA.<\/p>\n
In pursuing tax compliance, especially by ex-pats, SARS has also made their penalties for non-compliance far more severe.<\/p>\n
Tax Consulting SA said that it is important for expats to understand their tax obligations not only in their new country of work-life but also in South Africa. New requirements for these taxpayers are, however, already causing headaches.<\/p>\n
“SARS has the power to impose significant fines and penalties on expats who fail to comply with their tax obligations, and let us not forget the interest that grows on such penalties with every passing day the taxpayer is non-compliant,” said the tax firm.<\/p>\n
“Historically, the budget speech has consistently brought on significant changes for expats working outside of South Africa, and the addition of 52 new vacancies to the SARS staff could lead to stricter compliance enforcement and hence deeper audits,” it added.<\/p>\n