SARS 2025 Tax Year

New Tax Residency Rules

SARS has announced an important change for the SARS 2025 tax year that will directly impact anyone who has left South Africa, or who may return in the future.

From this year, SARS is actively tracking the reinstatement of tax residency – a new development that hasn't been monitored in this way before. If you previously ceased South African tax residency and return to the country, even temporarily, you must now declare the date your residency resumed.

In addition:

• SARS is matching income from global sources under international data-sharing agreements, increasing their visibility.

• The updated eFiling system now includes new forms and questionnaires specifically designed to capture information based on your tax residency status.

It's crucial to remember that if you haven't formally ceased your tax residency with SARS, you are still considered a resident and are taxable on your worldwide income, regardless of where you live.

We are actively evaluating the full implications of these new SARS changes for our clients. However, given the significance of this information for all South African expatriates, we wanted to give you a heads-up as soon as possible.

If you are considering returning to South Africa for any length of time, or if you have any concerns about your tax residency status, please get in touch with us.