Dormant or inactive tax numbers, often the result of prolonged non-compliance or outdated personal details, can send unsuspecting taxpayers down a dead-end street very quickly. 

It is a nuisance that can soon turn into a devastating dilemma – especially for South African expatriates abroad for whom a dormant tax number can bring critical processes to an abrupt standstill.

Many South Africans who emigrated years ago assume that their tax affairs automatically ended when they left the country, but the South African Revenue Service (Sars) does not close a taxpayer profile simply because they have relocated abroad.

Instead, tax numbers often become dormant, deregistered, or inactive restricting the taxpayer’s profile. This issue frequently only comes to light when a taxpayer attempts to apply for offshore transfer approvals or formally cease South African tax residency.

What Does a Dormant or Inactive Tax Number Mean?

A dormant or inactive tax number indicates that Sars has restricted the taxpayer’s profile. This commonly occurs when:

• Tax returns have not been submitted for multiple years
• Personal or contact details are outdated
• Sars cannot verify the taxpayer’s identity
• The profile was deregistered due to inactivity

When this happens, Sars will not allow key processes to proceed, including tax residency cessation applications (the formal process of confirming that a taxpayer is no longer regarded as a South African tax resident for tax purposes) or Tax Compliance Status/Approval of International Transfer PIN requests. Crucially, a tax practitioner is also unable to access or act on the taxpayer’s Sars eFiling profile until the tax number has been fully reactivated.

Simply put: an inactive tax number blocks everything.

Why Reactivation Must Happen First

Before Sars will consider a tax residency cessation request, the taxpayer’s profile must be fully active, accessible, and compliant. 

Reactivation allows Sars to verify the taxpayer’s identity, update personal, contact, and banking details and restore eFiling access. Further it enables the tax authority to assess outstanding returns, penalties, or compliance issues and confirm the taxpayer’s overall compliance status.

Without completing this step, Sars cannot assess the taxpayer’s position, and any cessation application will either be rejected outright or delayed indefinitely. Reactivation is therefore not optional, but a mandatory prerequisite.

Many expatriates only discover this after a cessation application is rejected or an offshore transfer is unexpectedly delayed.

The Challenge for Expatriates Abroad

For South Africans living abroad, reactivating a tax number presents an added layer of complexity. In most cases, Sars does not permit this process to be completed entirely online. Taxpayers are often referred to a Sars branch for in-person identity verification.

Securing branch appointments from abroad can be extremely difficult, and travelling back to South Africa solely for this purpose is rarely practical.

As a result, expatriates typically need to rely on a tax practitioner, granting them Power of Attorney (POA) to attend the Sars branch on their behalf, submit the required documentation, facilitate the reactivation, and liaise directly with Sars officials. Until this process is completed, no further action can be taken on the taxpayer’s profile.

Why This Matters Before Tax Residency Cessation

Sars will not process a tax residency cessation unless the taxpayer’s profile is both active and compliant. Attempting to bypass reactivation often results in:

• Rejected applications
• Extended delays
• Unexpected penalties
• Increased exit tax exposure

Reactivating the tax number first ensures that Sars can accurately assess the taxpayer’s profile and allows the cessation process to proceed efficiently and without unnecessary complications.

Turning Complexity into Clarity

Dormant or inactive tax numbers remain one of the most common, and most overlooked, obstacles for expatriates seeking to formally exit the South African tax system.

The first step for any expatriate considering tax residency cessation should always be confirming whether their Sars tax number is active and accessible. With the right professional support, reactivation can be managed efficiently, restoring access to the taxpayer’s profile and creating a clear path forward. Incorrect advice can fuel expat misconceptions.

By addressing this issue upfront, expatriates place themselves in a far stronger position to complete their tax residency cessation smoothly, compliantly, and without avoidable delays.

Written by Rendani Makatu, Expatriate Tax Support Specialist at Tax Consulting SA; and Alex Mahundla, Sars Compliance Specialist at Tax Consulting SA