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The South African
28-07-2025
- Business
- The South African
SARS makes key changes for non-resident taxpayers
The South African Revenue Service (SARS) has introduced a new interim process to simplify tax return submissions for individuals who are not tax residents of South Africa, but earn South African-sourced income. The move follows growing confusion among non-resident taxpayers over how to correctly complete their returns, with some required sections not automatically activating on the SARS eFiling platform. In response, SARS announced an interim solution via its SARS Online Query System (SOQS), allowing non-residents to request access to the correct tax return format. 'A more permanent solution directly on the tax return through the tax return 'wizard' will be introduced later,' SARS stated. To activate the non-resident section of the tax return: Visit the SARS website and click on the SOQS icon. Navigate to 'Non-Resident Tax Return Type.' Fill in the requested personal details. A One-Time Pin (OTP) will be sent to the contact details on record. Select the 2025 tax year and answer SARS's prompted questions. The return will then be formatted accordingly and accessed through the normal eFiling process. SARS noted that the information will be retained for use in subsequent years unless a taxpayer's residency status or other relevant details change. South Africa operates under a residence-based tax system, meaning: Residents are taxed on their worldwide income are taxed on their Non-residents are taxed only on income sourced from within South Africa 1. Salary income Salaries earned in South Africa by non-residents are subject to normal tax, unless a Double Taxation Agreement (DTA) provides relief. DTA conditions typically exempt tax if the employer is foreign, has no permanent establishment in South Africa, and the individual has not been present in the country for more than 183 days. 2. Pensions and annuities Only amounts related to services rendered within South Africa are taxed. 3. Rental income Non-residents earning rental income from South African properties must pay normal tax on that income. Certain property-related expenses, like repairs and municipal charges, may be deductible. 4. Interest Interest from South African sources is generally exempt from normal tax unless the non-resident was in the country for over 183 days or has a debt tied to a local entity. However, withholding tax of 15% may apply. 5. Dividends Dividends paid by South African companies are subject to a 20% dividend withholding tax, which may be reduced under applicable DTAs. 6. Royalties Royalties are taxed at 15% withholding, but this may be replaced by normal tax if residency thresholds are met. 7. Capital Gains Tax (CGT) Non-residents are only subject to CGT on: Immovable property (homes, land, farms, etc.) Shares or trust interests linked to South African property Assets of a permanent establishment in the country SARS acknowledged the potential for double taxation, where income is taxed in both South Africa and the taxpayer's country of residence. To mitigate this, DTAs are in place with many countries to determine tax jurisdiction and reduce duplication. These agreements can exempt or reduce taxes on salaries, pensions, dividends, interest, and royalties, depending on the circumstances and treaty provisions. SARS Commissioner Edward Kieswetter urged all non-resident taxpayers to ensure their information is up to date on eFiling and to make use of the SOQS until the full functionality is integrated into the main return platform. Further information, including conditions for estate duties and taxes on foreign entertainers and sportspersons, can be found on the SARS official website: Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Star
28-07-2025
- Business
- The Star
SARS introduces new enhancements for non-resident taxpayers in 2025 tax return process
The South African Revenue Service (SARS) has moved to make things easier for non-resident taxpayers earning income from South African sources by introducing new enhancements to the 2025 tax return process . These changes include updates to the ITR12 tax return form to help ensure non-residents complete the correct sections and submit accurate returns. "These enhancements aim to ensure that non-residents complete the correct required fields in the return. An interim solution to activate this part of the tax return has been introduced via the SARS Online Query System (SOQS)," SARS said. "This allows non-resident taxpayers to request the non-resident section of the tax return. A more permanent solution, directly on the tax return through the tax return 'wizard', will be introduced later. To use SOQS to enable the non-resident section of the tax return: On the SARS website homepage, click on the SOQS icon , and navigate to the ' Non-Resident Tax Return Type '. Complete the personal details as prompted. Once SARS has validated the information, a One-Time Pin (OTP) will be sent to the contact details on record. Choose the 2025 tax year and answer yes or no to the questions that will follow. Depending on your answers, your tax return will now be in the correct format and can be retrieved through eFiling in the normal way. According to the revenue service, the "taxpayer's information will be stored and used in the subsequent year of assessment unless the taxpayer's circumstances have changed subsequently".
IOL News
28-07-2025
- Business
- IOL News
SARS introduces new enhancements for non-resident taxpayers in 2025 tax return process
The South African Revenue Service (SARS) has moved to make things easier for non-resident taxpayers earning income from South African sources Image: Timothy Bernard / Independent Newspapers The South African Revenue Service (SARS) has moved to make things easier for non-resident taxpayers earning income from South African sources by introducing new enhancements to the 2025 tax return process. These changes include updates to the ITR12 tax return form to help ensure non-residents complete the correct sections and submit accurate returns. "These enhancements aim to ensure that non-residents complete the correct required fields in the return. An interim solution to activate this part of the tax return has been introduced via the SARS Online Query System (SOQS)," SARS said. "This allows non-resident taxpayers to request the non-resident section of the tax return. A more permanent solution, directly on the tax return through the tax return 'wizard', will be introduced later. To use SOQS to enable the non-resident section of the tax return: On the SARS website homepage, click on the SOQS icon , and navigate to the ' Non-Resident Tax Return Type '. Complete the personal details as prompted. Once SARS has validated the information, a One-Time Pin (OTP) will be sent to the contact details on record. Choose the 2025 tax year and answer yes or no to the questions that will follow. Depending on your answers, your tax return will now be in the correct format and can be retrieved through eFiling in the normal way. According to the revenue service, the "taxpayer's information will be stored and used in the subsequent year of assessment unless the taxpayer's circumstances have changed subsequently". Currently, South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income is earned. By contrast, non-residents are taxed on their income from a South African source. "Since tax systems differ from country to country, there is a chance that a particular amount could be taxed twice. "This possibility of double taxation is, however, often alleviated by tax relief contained in various Double Taxation Agreements (DTAs). These DTAs are international agreements contracted between countries to deal with potential competing taxing rights against the income of the same taxpayer. Under the provisions of the DTA, the non-resident's remuneration earned in South Africa may not be subject to normal tax in South Africa where specific requirements are met". IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
