We are well into the second half of the year, and with SARS tightening compliance measures and many South Africans considering international opportunities, it is more important than ever to stay proactive with your tax affairs. This month, we would like to share some key updates and reminders relevant to both local taxpayers and those with offshore interests.

Tax Return Season – Don’t Leave It Too Late

SARS’ annual filing season is in full swing. If you earn South African-sourced income, even as a non-resident, you may still have obligations to file.

Filing on time:

  • Avoids penalties and interest.
  • Ensures your tax affairs remain compliant for future transactions.
  • Helps expedite refunds where applicable.

If you have not yet filed, now is the time to get your documents in order and avoid the last-minute rush.

Filing Periods:

Non-provisional taxpayers should file from 21 July to 20 October 2025.
Provisional taxpayers have until 19 January 2026 to file their returns.

Tax Emigration – More South Africans Are Taking the Step

We are seeing a steady increase in clients formalising their tax emigration. Remember, this process:

  • Officially breaks your tax residency with SARS.
  • Clarifies your tax position when you’ve relocated abroad.
  • Ensures that future offshore earnings are not incorrectly taxed in South Africa.

Tax emigration can feel daunting, but with the right guidance, the process is straightforward and ensures peace of mind.

Important: Key Changes for Tax Season 2025

Expat Residency Declarations: South African expats now need to indicate whether they have re-instated RSA tax residency or not. This is crucial for those who do not intend to reinstate their South African residency.
Section 6quat Amendment: with effect from 1 March 2025, section 6quat of the Income Tax Act has been amended to allow taxpayers to fully use foreign tax credits for taxes paid on capital gains in the foreign jurisdiction.

Quick Tip for August

If you’re planning an offshore transfer or property purchase abroad before year-end, start the process early. SARS backlogs can cause delays, and proper preparation ensures a smooth transaction.

How We Can Help

If you would like a personalised assessment of your current situation, we would be happy to assist. Get in touch with us today to stay compliant, avoid delays, and plan with confidence.