Who is impacted?
Digital nomads, expats working remotely, foreign residents earning SA-source income, or non-residents with pensions/annuities will need to pay attention to recent changes announced by SARS for the 2026 Filing Season.(sars.gov.za)
Key Changes and Rules
- Residency declarations: New questions and date fields added to ITR12 to help determine your South African tax residency status—critical for expats and nomads.(sars.gov.za)
- Tax Directive System enhancements (from 17 April 2026): Ability to apply DTAs (Double Taxation Agreements) on tax directives; Certificates of Residence alternatives clarified; bulk cancellation of Recognition of Transfer (ROT) requests without documents.(sars.gov.za)
- Section 20A ring-fencing of assessed losses: Now applies from a marginal rate of 39% instead of the maximum 45%, for years starting on or after 1 March 2026.(sars.gov.za)
Implications for Digital Nomads & Expats
- If you are working remotely but are classed as resident for SA tax purposes, income from abroad may be taxed unless relief under a DTA applies. Keep residency status clear in responses.
- If you receive pensions/annuities from non-SA sources, use the enhanced Tax Directive features to apply your home-country DTA, avoiding double taxation. Ensure you have acceptable documents (or alternatives) for residence certificates.(sars.gov.za)
- Losses from business or trade may now be ring-fenced less strictly (i.e. more losses may be usable) if your marginal rate is less than 45%. Evaluate whether business losses are impacted.
Actionable Advice
- Maintain thorough records of days spent in South Africa vs abroad—travel patterns matter for residency.
- Request directives early using eFiling with new functionality; attach all supporting (or alternate) documentation for residence/DTA claims.
- Review past losses and assess whether carry-forward or ring-fencing under Section 20A impacts you.
- Use auto-assessment if eligible—if you agree with SARS’s auto assessment, no need to manually file early, but always check details.
Example Scenario
A UK-based digital nomad visiting South Africa several months per year: The new ITR12 fields could help avoid residency when not intended. Using a DTA, perhaps via tax directive, could reduce withholding on SA-source pension or annuity income. Losses from foreign business maybe usable if trigger marginal rate thresholds are met. Overall, informed by new tools SARS provides."