[South Africa] SARS pursues wealthy expats working overseas

The South African Revenue Service (SARS) is targeting high-earning South African expatriates with audits in 2025 as it ramps up enforcement to recover revenue from complex cross-border structures, lucrative expat packages, and common payroll compliance errors, Daily Investor reports.

Affected South Africans could receive a detailed audit letter from SARS requesting payslips for a specific period, full payroll reconciliations, and proof of foreign tax paid.

In addition, they may need to provide a breakdown of international travel expenses, departure dates for trips, and the duration of the visit to each entity.

Tax Consulting South Africa master mobility specialist Tanya Tosen stated that rigorous audits involving expatriates are no longer rare.

Speaking at the 5th Global Mobility Conference hosted by Xpatweb in Johannesburg on 13 August 13, Ms Tosen reportedly detailed a case involving the South African Revenue Service (SARS) and expat employees.

SARS asked an employer for 12 months of payslips for expat employees who received benefits such as cheap company housing and the use of company vehicles. SARS also clarified that more documentation could be requested at any time.

According to Ms Tosen, SARS is not pulling any punches in the scope of information it demands during audits of expatriate taxpayers.

It is escalating collection efforts and enforcement, driven by the potential of recovering revenue from complex cross-border tax structures, coupled with the high value of expatriate remuneration packages.

Ms Tosen reportedly added that expat packages often exceed local remuneration by a factor of ten. However, remuneration for expats worldwide varies widely based on location, industry, and experience level.

The global average expat salary is between $75,000 (R1.33 million) and $80,000 (R1.42 million) per annum. Switzerland tops the chart in compensating skilled expats, followed by the US.

The highest paying industries for the nation’s expats are finance and banking, followed by ICT and engineering.

Source: Daily Investor

The South African Revenue Service (SARS) is targeting high-earning South African expatriates with audits in 2025 as it ramps up enforcement to recover revenue from complex cross-border structures, lucrative expat packages, and common payroll compliance errors, Daily Investor reports.

Affected South Africans could receive a detailed audit letter from SARS requesting payslips for a specific period, full payroll reconciliations, and proof of foreign tax paid.

In addition, they may need to provide a breakdown of international travel expenses, departure dates for trips, and the duration of the visit to each entity.

Tax Consulting South Africa master mobility specialist Tanya Tosen stated that rigorous audits involving expatriates are no longer rare.

Speaking at the 5th Global Mobility Conference hosted by Xpatweb in Johannesburg on 13 August 13, Ms Tosen reportedly detailed a case involving the South African Revenue Service (SARS) and expat employees.

SARS asked an employer for 12 months of payslips for expat employees who received benefits such as cheap company housing and the use of company vehicles. SARS also clarified that more documentation could be requested at any time.

According to Ms Tosen, SARS is not pulling any punches in the scope of information it demands during audits of expatriate taxpayers.

It is escalating collection efforts and enforcement, driven by the potential of recovering revenue from complex cross-border tax structures, coupled with the high value of expatriate remuneration packages.

Ms Tosen reportedly added that expat packages often exceed local remuneration by a factor of ten. However, remuneration for expats worldwide varies widely based on location, industry, and experience level.

The global average expat salary is between $75,000 (R1.33 million) and $80,000 (R1.42 million) per annum. Switzerland tops the chart in compensating skilled expats, followed by the US.

The highest paying industries for the nation’s expats are finance and banking, followed by ICT and engineering.

Source: Daily Investor