The Automatic Exchange of Information (AEOI) initiative is a global effort to combat tax evasion and improve transparency by sharing financial account information between participating countries. South Africa, as part of the OECD Common Reporting Standard (CRS), actively exchanges tax-relevant data with numerous jurisdictions worldwide. Recently, SARS has expanded its list of partner jurisdictions for AEOI, reflecting the evolving global landscape. This blog explores what the AEOI means for South African taxpayers, details on the new jurisdictions added, and how to remain compliant.
What is Automatic Exchange of Information (AEOI)?
AEOI requires financial institutions to collect and report information on non-resident account holders to their local tax authorities. These authorities then automatically share the information with the tax authorities in the account holder’s country of residence. The purpose is to prevent tax evasion through offshore accounts and assets.
South Africa’s Role in AEOI
- SARS collects data from South African financial institutions on foreign tax residents.
- The information is exchanged annually with partner jurisdictions.
- South African residents’ foreign financial information is also obtained through AEOI agreements.
- This enhances SARS’s ability to detect undeclared offshore income and assets.
New Jurisdictions Added to South Africa’s AEOI Network
In 2025, SARS expanded its list of participating jurisdictions under the CRS framework, adding several new countries and territories. This expansion reflects increased international cooperation to enhance tax transparency. Some newly added jurisdictions include:
- Country A
- Country B
- Country C
- Country D
- And other emerging tax jurisdictions
(Note: For the latest and official list, taxpayers should consult SARS or the OECD website.)
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Implications for South African Taxpayers
- Increased scrutiny on offshore accounts and assets held in new partner jurisdictions.
- Mandatory disclosure of foreign income and assets to SARS is critical to avoid penalties.
- Greater risk of detection of undeclared offshore investments.
- Heightened importance of compliance with foreign asset reporting requirements.
How to Stay Compliant
- Keep accurate records of all foreign financial accounts and income.
- Declare all foreign income, dividends, interest, and capital gains on your South African tax returns.
- Understand SARS’s Foreign Asset Reporting requirements and complete applicable declarations.
- Consult tax professionals experienced in cross-border taxation and AEOI regulations.
Conclusion
The expansion of SARS’s Automatic Exchange of Information network underscores the global commitment to tax transparency and compliance. South African taxpayers with foreign financial interests must stay vigilant and fully disclose offshore income and assets to avoid costly penalties and legal consequences.
For expert guidance on AEOI compliance, foreign asset reporting, and international tax planning, consult qualified South African tax advisors.
