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This is not hypothetical. According to Tanya Tosen, Master Mobility Specialist at Tax Consulting South Africa, rigorous audits involving expatriates are no longer rare. Speaking at the 5th Global Mobility Conference hosted by Xpatweb in Johannesburg on 13 August 2025, she described a case where the South African Revenue Service (SARS) asked an employer for 12 months of payslips for expat employees who received benefits such as cheap company housing and the use of company vehicles. SARS also made it clear that more documentation could be requested at any time.
SARS Sees High Potential for Recovering Revenue
Tosen said SARS is clearly not pulling any punches in the scope of information it demands during audits of expatriate taxpayers.
It is ramping up collection efforts and enforcement, driven by the lucrative potential of recovering revenue from complex cross-border tax structures coupled with the high value of expatriate remuneration packages.
Tosen noted that expat packages often exceed that of local remuneration by a factor of ten.
Remuneration for expats worldwide vary widely based on location, industry and experience level. The global average expat salary is between $75,000 and $80,000 per annum. Switzerland tops the chart, followed by the United States in compensating skilled expats. The highest paying industries are finance and banking, followed by ICT and engineering.
Employers Cannot Afford a Reactive Approach
Tosen emphasised that expatriate tax compliance is a core employer responsibility with both financial and reputational risks. Employers are accountable for accurate expatriate payroll reporting, tax compliance and the relevant payments associated therewith.
Further complexities include determining whether a South African expat has officially ceased tax residency to protect their worldwide income from the SARS net, or if they are still tax resident on the SARS system despite residing abroad. Ceasing tax residency is not an automatic process when you leave South Africa on a long-term assignment or for permanent relocation.
“Many employers misinterpret the rules, leading to incorrect tax withholding or reporting. When expats earn income across multiple jurisdictions, Double Taxation Agreements (DTAs) or foreign tax credits must be applied correctly to avoid under- or overpayment.”
Non-cash and fringe benefits such as housing, schooling, relocation expenses, company provided motor vehicles and home leave flights are another common pitfall. These are often either incorrectly valued or omitted entirely from payroll reporting, which can trigger compliance issues.
Tosen warned that SARS is increasingly targeting these items as easy revenue recovery points. Even minor payroll or tax residency errors can lead to substantial tax shortfalls, penalties, and interest. “Non-compliance does not expire. SARS can audit as far back as they want to, especially if they suspect underreporting or residency misclassification.”
By investing in robust payroll processes, accurate tax residency assessments and regular compliance reviews, organisations can minimise the risks and protect their reputation with regulators and employees.
Where Are High-Earning Expats Going in 2025?
Over 300 million people are currently living outside their birth countries, translating to 3.6% of the global population. Experts predict the worldwide expat population can grow to 350 million by 2035.
- The United Arab Emirates has the highest expat population expressed as a percentage of the total National Population this amounts to a total of 88% who are foreign-born.
- The United States hosts the largest number of expats, amount to approximately 51 million expats.
- Portugal is the fastest-growing expat destination (30% growth between 2020 and 2025), followed by Mexico, thanks to digital nomad visas, Golden Visa schemes, and the low cost of living in these jurisdictions.
Tosen said a closer look at the numbers reveals that 54% of the world’s expats are employees and professionals, followed by migrants and refugees (18%) and retirees (7%), and other groups like dependents, lifestyle movers, and long-term travellers.
Easiest Countries to Obtain a Visa or Residency Permit
International surveys show securing a visa or residency permit is often the biggest administrative hurdle for expats. In 2025 Switzerland and Denmark were among the toughest countries for expats to get visas due to strict work visa policies and high salary requirements. The US’ lengthy green card process and Japan’s preference for local hires also pose challenges.
Among the countries easiest for expats to get visas is Portugal and Spain with its focus to attract digital nomads and Golden Visa programs in place.
The Changing Landscape for Expatriate Assignments
The landscape for mobile expats is changing due to corporates focusing on cost savings. Long-term assignments (typical postings of 2 to 5 years) are on the decline as companies prioritise flexibility and cost control.
“In the past expats would demand relocation costs for family members and their pets, anything from dogs to horses as they knew their skills were in high demand. This is now changing.”
Short-term assignments for 3 to 12 months are gaining popularity and enables rapid skill deployment for technical problem solving and training. There are more permanent transfers for strategic talent placement and cost efficiencies, and to close long-term skills gaps with a medium level of complexity.
Another trend is more commuter assignments in cross-border regions such as die European Union and Gulf region, rotation assignments remain stable in the mining, energy and infrastructure fields where skilled workers work on remote sites for a few weeks at a time, and virtual assignments growth is significant – ideal for digital nomads in roles that do not require physical presence.
Conclusion
With digital integration between SARS, the Department of Home Affairs, and foreign tax authorities, the era of full expat compliance has arrived. Companies must adopt a proactive, specialist-led approach to payroll, tax planning, and mobility strategy, Tosen said.
Neglecting expat compliance is no longer an option for employers. Those who act early and strategically will not only safeguard against financial and reputational risk but also unlock smoother mobility, stronger talent retention, and a future-ready workforce.
The message is clear: compliance is not a burden—it is a business imperative.
