In brief (TL;DR): Whether you need to file a SA tax return depends on your tax residency status. If SARS still considers you a resident, you must declare worldwide income. If you have formally
ceased tax residency, you only file if you have SA-sourced income.
It is a question we hear from SA expats in the UK all the time. The short answer is: it depends on your tax residency status and whether you still have any income coming from South Africa.
If you are still a SA tax resident
If you have not completed cessation of tax residency and SARS still considers you a South African tax resident, you need to file an annual SA tax return and declare your worldwide income - that includes your UK salary and any other income.
The SA-UK Double Taxation Agreement means you will not be taxed twice on the same income, but you do still need to file. Many expats assume that because they are paying UK tax, they do not need to file in SA - this is not correct.
The expat exemption
Since 1 March 2020, South Africa has an expat tax exemption under Section 10(1)(o)(ii). If you are a SA tax resident working abroad for more than 183 days in a 12-month period (with at least 60 consecutive days), the first R1.25 million of foreign employment income is exempt from SA tax. Income above that threshold is taxable in SA, with credit for foreign taxes paid.
This exemption does not remove the obligation to file a return - it reduces the tax you owe, but SARS still needs to see the return.
If you have completed cessation of tax residency
Once you have formally ceased your South African tax residency, you only need to file a SA return if you still have SA-sourced income - things like rental income from a SA property, interest from a SA bank account, dividends from SA companies, or a SA pension.
If you have none of those, you generally do not need to file at all.
Key SARS deadlines
The SA tax year runs from 1 March to 28 February. Filing season typically opens in July, with the deadline for most non-provisional taxpayers in October or November. SARS imposes penalties for late or missing returns - typically R250 per month for each outstanding return, which adds up quickly over multiple years.
Why outstanding returns matter
Beyond penalties, outstanding returns block other SARS processes. You cannot get an AIT approved, cannot complete cessation of tax residency, and cannot access your retirement annuity if there are unfiled returns on your record.
A worked example: an expat who has not filed in four years
A typical scenario: a 41-year-old expat in Bristol, originally from Johannesburg, moved to the UK in 2022. She assumed that because she paid UK tax through PAYE, her SA tax obligations ceased the moment she left. For four years she filed nothing in South Africa.
In 2026 she decides to externalise R650,000 from accumulated SA savings to fund a UK home deposit. WBForex runs a SARS compliance check before applying for the AIT.
The diagnostic. SARS still has her registered as a tax resident. Four years of unfiled returns sit on her profile. Administrative penalties of approximately R12,000 (R250 per month per outstanding return) have accrued. The AIT cannot be processed until the returns are filed and the profile is clean.
The corrective sequence. WBForex's tax practitioners file the four outstanding returns under Section 10(1)(o)(ii). Her UK employment income exceeded R1.25 million in three of the four years; the exemption neutralises the SA tax on the first R1.25m each year, but the portion above attracts SA tax with UK tax credits applied via the DTA. After credits, her residual SA tax liability is minimal. The penalties remain payable.
The downstream effect. Returns assessed in 6-8 weeks. Compliance profile clean. WBForex submits the AIT application; SARS processes within 3 weeks against the clean profile. Sterling lands in her Bristol account approximately 14 weeks after she first asked about the transfer.
Total elapsed time. Roughly 3.5 months from "I want to transfer" to "Sterling in UK account". The active financial event (the AIT plus the conversion) takes about 4 weeks; the rest was unwinding the compliance backlog. If she had filed annually from the start (or formally ceased residency in 2022), the transfer would have completed in 4-5 weeks instead.
The lesson: filing annually from the UK is significantly less stressful than catching up four years later. The Section 10 exemption usually keeps the tax liability minimal; the cost of staying compliant is mostly time, not money.
The mistakes SA expats make
A few patterns:
- Assuming UK PAYE replaces SA filing obligations. It does not. Until you formally cease SA tax residency, you remain a SA tax resident with worldwide income filing requirements - regardless of where you live or what tax you pay elsewhere.
- Skipping Section 10(1)(o)(ii) on the filed return. The exemption is opt-in; you have to claim it on the return. Filing without claiming it overstates your SA tax liability and may trigger an unnecessary assessment.
- Forgetting SA-source income after cessation. Rental income from a kept-and-let SA property, dividends from JSE shares, interest from SA savings accounts - these remain SA-source and require filing even after cessation. The full filing obligation drops only when there is no SA-source income.
- Not declaring foreign assets where SARS requires disclosure. SARS expects disclosure of certain foreign asset holdings. The rules are nuanced and depend on size and residency status; worth confirming the position with a practitioner each year.
- Believing that "small" outstanding returns will be ignored. They are not. SARS profiles are persistent; outstanding returns sit on the file indefinitely. Every cross-border transaction triggers a profile check. Penalties accrue silently.
Edge cases worth knowing
For SA expats with SA-source rental income while UK tax resident, the rental income is taxable in both jurisdictions in principle. The DTA allocates primary taxation rights and provides credit mechanics. In practice, SA tax is typically the primary tax (SA-source income) with UK credit for any SA tax paid.
For SA expats receiving SA pension income (e.g. SA government pension drawing while living in the UK), the income is SA-source and triggers SA filing obligations. The DTA covers double-taxation relief but does not remove the filing requirement on either side.
For SA expats who own JSE-listed shares and receive dividends, the dividends are subject to SA withholding tax at source (typically 20%). The DTA provides reduced rates in some cases and credit relief in the UK. The dividend income still needs to be declared in the SA return.
For SA expats who are also UK citizens (via Ancestry visa or naturalisation), the SA residency rules apply identically. SA citizenship and UK citizenship can coexist; the SA tax residency status is independent.
For our companion piece on the SARS eFiling system and how to manage your SA tax from the UK, the practical mechanics of filing remotely are covered in detail.
A word from Peter: "The single most expensive misunderstanding in this whole area is the one where someone tells me 'I have not filed in five years because I am not in SA anymore.' By the time we have that conversation, they typically have R15,000 in penalties and they cannot move money. The fix is straightforward, but it takes time, and it always sits in the way of whatever they actually wanted to do. Filing once a year, even if the answer is 'no SA tax owed', is so much cheaper than the alternative."
Not sure about your situation?
WBForex has SARS-registered tax practitioners who can review your circumstances and make sure you are compliant. Contact WBForex for a free consultation.
FAQ
If I am paying UK tax, do I still need to file in SA?
Yes, until you have formally ceased SA tax residency. UK PAYE does not replace SA filing obligations. The two systems are independent. The DTA prevents double taxation but does not remove the filing requirement.
What is Section 10(1)(o)(ii) and how do I claim it?
It is the SA expat tax exemption that excludes the first R1.25 million of foreign employment income from SA tax, provided you spent more than 183 days outside SA in a 12-month period (with at least 60 consecutive days). You claim it by completing the relevant section of the ITR12 return, declaring the foreign employment income and applying the exemption against it.
How much are the penalties for unfiled SA tax returns?
SARS administrative penalties for non-submission are typically R250 per month per outstanding return. Five years of unfiled returns adds up to R15,000 in penalties before any tax owed enters the calculation.
Do I need to declare my UK property or UK bank account on my SA return?
While you are a SA tax resident, yes - SARS expects disclosure of foreign asset holdings above certain thresholds. The exact disclosure rules depend on the asset type and size. A SARS-registered practitioner can confirm the position for your specific holdings.
What happens if I cease residency but later move back to SA?
You re-register as a SA tax resident from the date you re-establish residency. The mechanics are covered in our companion piece on re-registering as a SA tax resident. Filing obligations resume from re-registration.
