SARS reaches for South Africans' offshore pensions: foreign retirement funds lose their tax shield on 1 March

A National Treasury amendment effective 1 March 2026 removes the long-standing exemption on foreign retirement funds, giving SARS taxing rights over retirement income South Africans accumulated abroad — and over foreigners who become SA tax residents. It lands alongside two existing realities expats keep tripping over: under the two-pot system only the savings component is accessible once per tax year, and full access to a retirement annuity before 55 still requires proving three consecutive years of non-residency.

With global data-sharing under the Common Reporting Standard, offshore income and accounts are far more visible to SARS than many assume. Physically leaving is not the same as formally ceasing tax residency.

What this means for you: If you are a South African abroad — or planning to leave — this changes your retirement math. Confirm whether you have actually completed tax emigration with SARS (not just moved), understand that a deemed-disposal “exit tax” can apply to assets on cessation, and get cross-border tax advice before touching foreign or SA retirement funds. The cost of assuming you’re “out” can surface years later.