If you’re setting up a branch or establishing any type of business in South Africa as a foreign company, one of the key legal requirements is appointing a South Africa Tax Representative, often referred to by SARS (South African Revenue Service) as a public officer.
Below is a clear and practical explanation of who this person should be, what they do, and why this role is critical for your business compliance in South Africa.
Who Can Be a Tax Representative?
To meet SARS requirements, your tax representative must:
- Be a natural person (not a company or legal entity)
- Live in South Africa
- Hold a valid South African ID
- Be authorised to act on behalf of the foreign company (usually via resolution or Power of Attorney)
Please note: A non-resident or someone holding only a foreign passport cannot be appointed as the tax representative.
Why Is a South Africa Tax Representative Needed?
The tax representative acts as the official liaison between SARS and your business. They are legally responsible for making sure your company stays on the right side of local tax laws.
Without a registered public officer, SARS will not allow you to:
- Register for income tax
- Register for VAT or PAYE
- Access SARS eFiling to submit returns
In short: your operations can grind to a halt.
What Are the Responsibilities of the Tax Representative?
Your appointed representative must:
1. Register the Business with SARS
- Ensure the company is registered for all relevant taxes (Income Tax, VAT, PAYE, etc.)
2. Act as SARS Point of Contact
- Receive and respond to all SARS correspondence, including audits and information requests
3. Manage Tax Compliance
- Oversee submission of all required returns:
- Provisional and Annual Income Tax
- VAT returns (if registered)
- Payroll taxes (PAYE/UIF/SDL)
4. Keep Proper Records
- Maintain accounting and tax records in South Africa and provide access to SARS if requested
5. Ensure Payment of Taxes
- Make sure all tax obligations are paid on time, including interest and penalties where applicable
Note: In severe cases of non-compliance, SARS may hold the tax representative personally liable.
Who Usually Fills This Role?
If your business does not yet have a local director or employee, it is common to appoint a:
- Local accountant or tax advisor
- Business consultant acting under Power of Attorney
- Trusted local partner
Many of our clients appoint EOACC to act as their local tax representative, especially during the setup and early operational phase.
Final Thoughts
Choosing the right tax representative is more than a formality. This individual plays a critical role in ensuring your business is compliant, responsive, and ready to operate smoothly in the South African market.
Need help? EOACC can assist with appointing a public officer, SARS registration, and manage your ongoing compliance so you can focus on growing your business.
Let’s make your entry into South Africa as smooth as possible.