TOP 5 SOUTH AFRICAN TAX QUERIES FOR 2025

Here are the Top 5 South African Tax Queries for 2025, based on recent legislative changes, SARS enforcement trends, and taxpayer behaviour:

1. How Do I Cease Tax Residency Correctly?

Query:

“I’ve been living abroad—how do I officially notify SARS that I’m no longer a South African tax resident?”

Why it’s a top query:Due to increasing audits and penalties for unnotified exits, many expats are realising the need to formalise their non-residency status. SARS now requires a detailed Cease to be Resident declaration with supporting documents, and tax planning must address capital gains exit tax, DTAs, and retirement lock-ins.

2. What Are the Tax Implications of the Two-Pot Retirement System?

Query:

“How are withdrawals and contributions to the two-pot system taxed—and does it affect my access to funds if I’m no longer living in SA?”

Why it’s a top query:The two-pot system introduced in March 2024 has created confusion around the tax treatment of the savings pot, early access rules, and whether SARS treats non-residents differently—especially when DTAs are involved.

3. Why Has SARS Reopened My Tax Return or Issued a Provisional Tax Penalty?

Query:

“I already submitted—why has SARS issued a new assessment or penalty months later?”

Why it’s a top query:SARS is increasingly reissuing assessments after flagging discrepancies from third-party data or due to post-residency pro-rata income adjustments, often catching taxpayers off guard. Section 89quat penalties are applied even where estimates were made in good faith.

4. Am I Still Liable for South African Tax on Foreign Income?

Query:

“Now that I earn a salary overseas, do I still have to declare or pay tax in SA?”

Why it’s a top query:The R1.25 million foreign income exemption is only available to tax residents, and if one hasn't formally emigrated, SARS may expect full global income disclosure. Misunderstandings around residency, source, and DTA protections lead to either overpayment or underreporting.

5. Why Do I Need a Tax Clearance Pin to Move Money Offshore?

Query:

“I’m a non-resident—why do I still need SARS permission to transfer funds out of SA?”

Why it’s a top query:SARS still controls cross-border remittances via the TCS (Tax Compliance Status) system, even for non-residents. Many South Africans are surprised that past compliance issues or old returns can delay or block offshore transfers, especially when selling property, withdrawing retirement funds, or receiving trust distributions.

Summary Table

Tax Query	Reason for Concern	Linked Risk/Consequence
Ceasing tax residency	Unclear SARS requirements	Unintended tax residency & penalties
Two-pot retirement	Access & taxation uncertainty	Double tax & planning gaps
Reissued returns/penalties	SARS automation & audits	Unexpected tax bills or penalties
Foreign income taxability	Residency not ceased	Tax on global income, audit risk
Offshore funds repatriation	Still requires SARS clearance	Delays in asset transfers

 Got any questions? Please contact us on T:+27 31 564 6550 or E:queries@acsplus.co.za