Author: Karen van den Bergh
As we approach the 2025 mid-year EMP501 and IRP5/IT3(a) submission deadline, a major hurdle has emerged: every employee must have an income tax reference number.
This requirement applies to everyone on payroll, even if they earn below the tax threshold and are not personally liable for tax. Without these numbers, submissions cannot be filed, tax certificates cannot be generated, and companies face penalties and interest if SARS rejects the reconciliation. In other words, a single missing tax number can hold up your entire submission.
Understandably, one of the biggest questions we’ve received is:
“Can a non-South African employee obtain an income tax number in South Africa without a work permit or ZEP?”
It’s a valid concern, especially as many employers are unsure how SARS handles foreign nationals.
The answer is yes. A foreign individual can register for an SA income tax number even without a work permit or ZEP, provided they have a valid reason (for example, employment income, rental income, or other South African-sourced income). SARS looks at tax liability, not immigration status.
The way forward
To help, here is a step-by-step approach for registering foreign employees:
- Confirm registration is needed: If the employee earns SA income (employment, rental, business, investments, or meets residency tests), they must be registered.
- Prepare documents: Passport, proof of SA address, proof of income/reason for registration, and (if applicable) a power of attorney for practitioner assistance.
- Submit to SARS: Either directly at a branch (appointment required) or via a tax practitioner.
- Respond to queries: If SARS asks about the missing work permit/ZEP, the correct response is that tax liability is determined by South African-sourced income, not immigration status.
- Receive the tax number: Once approved, SARS issues the number within a few days to two weeks.
Note: Some branches may apply stricter interpretations. Working with a tax practitioner can smooth the process and avoid delays.
We can assist with applications at R300 excl. VAT per individual. This ensures that all employees, South African or foreign, are registered correctly and that your company can file EMP501 reconciliations without risk of penalties or rejection. Email us for more information.