The South African Revenue Service (SARS) has announced significant changes to its tax administration system, particularly affecting non-resident taxpayers. These modifications aim to streamline the filing process and enhance compliance for the 2025 tax year and beyond.
Key changes for non-resident taxpayers
In a major overhaul of its tax filing system, SARS has introduced separate tax return forms for residents and non-residents. This change marks a departure from the previous one-size-fits-all approach, ensuring more accurate and targeted tax collection.
Enhanced ITR12 forms
The South African Revenue Service has developed distinct ITR12 forms tailored to taxpayer residency status. Non-residents will access their specific forms through the SARS Online Query System (SOQS), requiring verification through a one-time PIN (OTP).
- Separate forms for residents and non-residents
- Streamlined process through SOQS
- Enhanced security measures with OTP verification
Foreign tax credit improvements
Notable updates have been made to foreign tax credit regulations, particularly affecting Section 6quat.
These changes allow for:
- Full utilisation of foreign tax credits for capital gains
- Extended carry-forward period of up to six years
- Simplified reporting mechanisms
Auto-assessment innovations
The South African Revenue Service has expanded its auto-assessment capabilities to include provisional taxpayers, marking a significant step toward automated tax administration. This system will automatically populate returns with available third-party data.
Section 11(nA) and 11(nB) updates
Employers must now report specific deductions under Sections 11(nA) and 11(nB) on IRP5/IT3(a) certificates, using new source codes. This enhancement ensures more accurate reporting and reduces compliance burden.
Implementation timeline
The new system will be fully operational for the 2025 filing season, commencing in July 2025. The South African Revenue Service has designed these changes to improve efficiency and reduce administrative complexity for both taxpayers and tax authorities.
These enhancements represent a significant modernization of SARS’s tax administration system, reflecting the organisation’s commitment to digital transformation and improved service delivery.
Sources
- BusinessTech – SARS Announces Changes for Non-Resident Taxpayers
- BizNews – SARS Turns Up Heat: SA Expats Need to Know
- MSN – SARS Introduces New Enhancements for Non-Resident Taxpayers
