A tax number is essential for anyone living or doing business in South Africa, including expats. It’s a unique identification number issued by the South African Revenue Service (SARS) that allows you to file tax returns, claim tax deductions and perform banking transactions. In this guide, we’ll explain the steps to obtain your SARS tax number and why it’s important for South African expats. Let’s get started!
What is a SARS tax number?
A SARS tax number is a unique 13-digit identification number issued by the South African Revenue Service (SARS) to individuals and businesses in South Africa. This number is used for various tax-related activities, such as filing tax returns, paying taxes, and claiming tax deductions.
Also known as a South African tax identification number, the SARS tax number serves as a personal or business identifier that SARS uses to track your tax information and ensure compliance with South African tax laws.
The significance of a SARS tax number for both businesses and individuals in South Africa cannot be overstated. It is a key requirement for:
A SARS tax number is compulsory for both businesses and individuals in South Africa. Here’s why:
- Tax compliance: It’s the primary identifier SARS uses to track your tax obligations. With a SARS tax number, you can file tax returns, pay taxes, or claim any tax benefits.
- Financial transactions: Many financial institutions, such as banks and investment firms, require a SARS tax number for opening accounts, conducting transactions, and reporting income.
- Government services: Some government services, like applying for grants or permits, may necessitate a SARS tax number as proof of residency and financial standing.
- Business registration: Businesses must have a SARS tax number to register with the Companies and Intellectual Property Commission (CIPC) and obtain a business registration certificate.
- Employee payroll: Employers must deduct Pay-As-You-Earn (PAYE) tax from employee salaries and submit the corresponding tax returns using the employees’ SARS tax numbers.
As you can see, a SARS tax number is a key requirement for anyone living or operating a business in South Africa. It’s not just a number, it’s a gateway to compliance with tax laws and facilitates various financial and administrative activities.
How significant is a SARS tax number for South African expats living abroad?
Even after emigrating, a SARS tax number remains a crucial part of your financial life. It’s important to understand that you may still have tax obligations to SARS, especially if you have specific sources of income or assets within South Africa.
Here’s why a SARS tax number is essential for South African expats
- Tax returns: If you have South African-sourced income, such as rental income from property or dividends from South African investments, you must file a South African tax return. A SARS tax number is essential for this process.
- Double taxation agreements: South Africa has double taxation agreements with many countries. These agreements help prevent you from being taxed twice on the same income. To claim the benefits of these agreements, you’ll typically need to provide your SARS tax number.
- Foreign investment: If you plan to invest in South Africa, a SARS tax number will be required for various financial transactions, such as opening a bank account or purchasing property.
- Pension and retirement planning: If you have a South African pension or retirement annuity, you may need to provide your SARS tax number to receive payments or claim tax deductions.
Applying for a SARS tax number is a straightforward process. Here’s what you need to do:
If you’re looking for expert assistance with applying for a SARS tax number, FinGlobal can help. Our experienced team can guide you through the entire SARS tax number application process, to eliminate the headache of dealing directly with SARS.
Documents required for SARS tax number application
When working with FinGlobal, we’ll assist you in gathering the necessary documents when registering for your SARS tax number, which typically includes:
- Identity document: A certified copy of your South African identity document (ID) or passport.
- Proof of address: A recent utility bill or bank statement as proof of your residential address.
- Business registration (if applicable): If you’re applying for a business, a copy of your business registration documents.
- Additional documents: Depending on your specific circumstances, you may need additional documents, such as proof of income or employment.
What you need to know about SARS tax number confirmation
Verifying your SARS tax number online is a straightforward process. Here’s a step-by-step guide:
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- Visit the SARS eFiling Portal: Go to the official SARS eFiling website: www.sarsefiling.co.za
- Log in to your account: If you already have an eFiling account, log in using your username and password. You’ll need to create an account if you don’t have one.
- Access your profile: Navigate to your profile or account settings once logged in.
- View your tax number: Your SARS tax number should be prominently in your profile. You can verify it against the number you have on record.
Here’s how you can get your SARS tax number confirmation letter online through eFiling:
- Log in to your SARS eFiling account.
- Navigate to your profile or account settings.
- Look for an option to download or print your tax number confirmation letter.
Still struggling? FinGlobal can assist you with everything SARS-related
As a leading financial services provider in South Africa, we can streamline obtaining your SARS tax number. Our deep understanding of South African tax laws and regulations ensures you receive efficient and effective results.
Why choose FinGlobal for your South African expat tax requirements?
- Expert guidance: Benefit from our team of professionals with extensive knowledge of South African tax laws.
- Streamlined process: Let us handle the paperwork, ensuring your application is submitted accurately and on time.
- Personalised support: Receive dedicated assistance throughout the process, addressing any questions or concerns.
Contact us at info@finglobal.com to discuss your needs and get started. Let’s simplify the process together.