SARS has announced the filing dates for the 2026 tax season which will open 13 July 2026. We remind all clients that, as tax residents, you are required to declare your worldwide income, not just amounts earned locally in South Africa. This includes earnings from foreign employment, investments, rental income, and any offshore structures. For those taxpayers who choose (or have previously chosen) not to disclose, this decision will not be without consequences. Why?
SARS is using the data it receives under the Standard for Automatic Exchange of Financial Account Information in Tax Matters – more commonly known as the Common Reporting Standard (CRS) – to gather information on the offshore assets of South African tax residents.
CRS, developed by the OECD at the start of 2014, calls on countries to obtain financial account information on non-residents from their financial institutions (banks, investment companies and corporate service providers). These institutions then report to their local tax authorities who in turn automatically exchange that information with tax authorities in other countries on an annual basis.
By 2025, 123 countries carried out automatic exchange of information, South Africa being one of these countries. More than 123 million accounts worth €12 trillion were reported already. Over 2,700 bilateral exchange relationships existed in 2025.
Automatic exchange of information is a game changer for tax authorities. This system of multilateral exchange is providing countries around the world with a wealth of new data, empowering their revenue authorities to ensure that offshore accounts, interest earned and payments from structures are being properly declared and when its is not, they still have the information to enable them to tax their residents accordingly.
Since 2019 SARS has been issuing notices to South African taxpayers based on information it has received from foreign jurisdictions under the CRS. The system is clearly working. These notices inform taxpayers that, in the interests of administrative justice, SARS intends to initiate a review of their tax affairs. It asks them to confirm that they have offshore assets and requests detailed information as to the location, the amount and the nature of the investments.
If there is any uncertainty about your reporting and tax obligations in relation to any international structures in which you have an interest, we suggest that you contact your nearest Sovereign office to discuss your arrangements and the need for obtaining tax advice, says Sovereign Trust (SA) Director Coreen van der Merwe.
If you have undisclosed offshore assets and you have not yet received a SARS notice, it would be irresponsible to think that you have fallen through the cracks of the system. It is best to be pro-active and discuss the need for a VDP application with a tax advisor. This might protect you against criminal prosecution and tax penalties. Also remember that your interest in the offshore structure might be of such a nature that no reporting to SARS is required. If you have any uncertainty, speak to an expert.
We also suggest that any South African taxpayer who is currently contemplating setting up any new international structure should ensure that they are working with a reputable management company that has an understanding of the local reporting and tax issues, and which will also be able to connect you with a tax advisor in the jurisdiction where you are tax resident.
