Don’t let SARS’ new eFiling regulations stand in the way of your retirement annuity

What are some of the complications you may face?

To ensure you keep receiving your retirement annuity and do so in accordance with South Africa’s tax laws, you’ll need an eFiling profile. This is done to either do your own taxes or change tax practitioners, whether they’re based in South Africa or abroad. You will need an eFiling profile to change tax practitioners, no matter the circumstance under which they may longer be able to provide their services.

Read more: Retirement funds – what to do when emigrating?

The Department of Home Affairs is the only official government department that can capture facial biometrics. To conform to SARS's biometric capture requirements for eFiling, you will need to get a new South African Smart ID Card.

This is compounded by the fact that you won’t be able to solve this through a video appointment if you live abroad. You will have to make the trip to South Africa and visit a SARS branch in order to ensure that the correct security details are on record and adhere to the security details they have on record.

Without a valid eFiling profile, tax number or South African Smart ID card, you won’t be eligible to receive them anymore. The process of capturing biometrics can be intimidating if you’ve never done it before.

The administrative hoops you’ll have to jump through may seem tedious, but with the right advice from tax experts like those at Sable International, you can rest assured you’ll navigate these challenges with ease.

Read more: How to access your SA living annuity offshore - an eFiling guide

How does SARS’ new biometric capture and the need for a new ID Card affect you?

In November 2024, SARS made biometric capture a requirement for eFiling. In addition, you’ll also need a new South African ID card to do this. What does this mean for you? Well, if you left the country before 2013 and only have a green ID book but are still a South African tax resident, you’re going to need the new identity document.

You’ll also need a South African phone number, something you’ll not likely have if you’ve left the country a long time ago. Following these procedures is essential if you wish to maintain your retirement annuity. Failing to do so could mean unnecessary administrative challenges that could otherwise have been avoided.

But don’t worry. In this guide, we’ll see how SARS’ biometric capture system works and its relation to the Department of Home Affairs through the new South African ID Card.

How to get a new SA ID Smart Card

So, how do you get the new SA Smart ID Card? While green ID books will stay valid until they’re phased out in the next two to three years, you’ll need a Smart ID card to create your eFiling profile.

You may apply online via the Department of Home Affairs eHome portal. If you haven’t left South Africa yet, you can book an appointment at your nearest Home Affairs branch. A Smart ID will cost R140.

Home Affairs will conduct its own biometric capture through photos and fingerprints. This will be recorded as a base set of information from which SARS’ own biometric data will be compared against as a security measure. Once your ID is processed, you’ll have to collect it where you made your application. Home Affairs will notify you via SMS when you may collect it.

If you live abroad, you’ll need to follow these steps instead. First, make an appointment at a South African embassy or consulate, walk-ins aren’t allowed. You will also need the following documentation regardless of whether you’re applying for one from inside or outside the country:

• A completed BI-9 form in black ink. This is the standard form needed to apply for an ID and is used to collect your fingerprints
• A certified copy of your birth certificate or reference book
• Two identical, colour ID photos
• Certified copies of your parents’ IDs or passports
• A certified copy of your old South African ID book or birth certificate
• If applicable, you’ll also need to provide a copy of your marriage certificate, divorce decree of spouse’s death certificate

How SARS’ biometric capture system works

Now that you have your new ID, you can move on to setting up your eFiling profile. If you live abroad, you will have to return to South Africa to complete the biometric capture process at a SARS branch via an in-person meeting with a consultant.

You will also need the following:

• A certified, legible version of your Smart ID Card, passport or driver’s licence
• Proof of address through a utility or rates bill
• Three months’ bank statements

Once completed, SARS will register you immediately and give you a tax number.

Biometric capture

SARS’ new biometric capture system was designed to use personal data as a safeguard against profile hijacking or identity theft. Facial-recognition authentication will be used for all individuals who register for eFiling using the new South African ID card. Your photos will also be matched in real-time against reference data in SARS’ possession and that of the Department of Home Affairs as an additional security measure.

Two-factor authentication

SARS has also enabled two-factor authentication (2FA) for logins via the MobiApp, which will help monitor your profile. Users are sent a One-Time PIN (OTP) after entering the correct login information on the MobiApp. This works in tandem with the password requirements, all of which must meet the following criteria:

• Contain at least eight letters
• Include at least one uppercase, lowercase, numeric and special character
• Exclude any personal information or repetitive or sequential characters

Our team of exchange control specialists can take the stress out of the process of transferring your RA out of South Africa. Get in touch on +27 (0) 21 657 2153 or saforex@sableinternational.com.