Tax and SARS knowledge base

What foreign tax-credit evidence should I keep for SARS?

Last reviewed: 28 August 2026

Direct answer

Keep a file that links each foreign income item to the foreign income tax claimed, the foreign assessment or withholding record, and evidence of payment where applicable. The file should also show how the foreign currency amounts were translated and where the related income and credit appear on the ITR12. A foreign bank deposit or an employer payslip by itself rarely proves the full foreign tax-credit position.

SARS maintains a comprehensive ITR12 guide and says that return supporting documents must be retained for at least five years. Those documents are especially important where income was earned abroad, tax was withheld under a foreign payroll, or more than one foreign authority was involved. The records are not merely a response to verification. They are the basis for deciding what may be entered in the first place.

What this means in practice

Start with the income, not the credit. Make one line in a schedule for each foreign salary, interest amount, dividend, rental receipt, capital transaction or other item. Record the country, payer, period, gross amount, currency, exchange-rate working and the rand amount reported. Add the foreign tax reference and the amount of foreign income tax connected to that same line.

Then collect the primary documents. For employment income this may include an annual tax certificate, payslips, foreign tax return, assessment and proof of payment. For investment income it may include a broker certificate, issuer statement, foreign tax voucher and account statement. If tax was paid after a foreign assessment, retain the assessment, payment confirmation and the calculation that ties it to the income year. Keep a readable translation or explanation for documents not issued in English.

Check the kind of foreign deduction. Income tax, a levy, social-security contribution, pension contribution, penalty, interest charge and payroll administration fee are not interchangeable descriptions. Do not label every amount deducted overseas as foreign income tax. Ask the foreign adviser or payer for a certificate that identifies the tax authority, tax type, taxpayer, period and amount if the document is unclear.

Prepopulated information can help identify an item, but it should not replace reconciliation. SARS says that eFiling can prepopulate some third-party data and that data can be refreshed. A taxpayer still needs to check it against their own records. Do not duplicate an amount because it appears both on a foreign certificate and in a prepopulated field.

Step-by-step

Create an income-to-tax schedule.

Give every foreign income item a reference number. Show gross income, foreign tax, country, foreign tax year, currency, rand conversion and the ITR12 entry.

Obtain the original tax documents.

Keep the foreign withholding certificate, return, assessment, payment receipt and correspondence. Save electronic copies in a stable folder.

Match the tax to the income.

Ensure the tax relates to the same income and relevant period. Record any part that is refundable, disputed or still unpaid.

Separate non-income-tax amounts.

Highlight social security, penalties, interest and other deductions rather than rolling them into a foreign tax figure.

Review the current ITR12.

Complete the current return from the reconciled schedule. Return labels and validation can change, so do not copy an old screen or old source code.

Keep the final filing pack.

Preserve the submitted ITR12, assessment, calculation, sources and correspondence together for the record-retention period.

Documents and records to keep

Foreign tax certificates, payslips, returns, assessments and payment confirmations.
Contracts, investment statements and payer correspondence identifying the income.
Exchange-rate workings and a line-by-line rand reconciliation.
Foreign refund notices, objections and revised assessments.
The submitted ITR12, SARS assessment and any verification response.

Important limits and exceptions

This article does not calculate a foreign tax credit or decide whether a particular foreign tax qualifies. That analysis can depend on the tax type, income category, residence, treaty position, foreign refund rights and statutory limits. A document pack is necessary, but it is not a substitute for technical analysis.

Do not manufacture a payment date, use an estimate as if it were an assessment, or claim the same foreign tax twice. If records arrive after you file, retain the dated correspondence and obtain advice before treating a later document as proof that an earlier figure was correct.

When to get tailored advice

Get cross-border tax advice if the tax was later refunded, relates to a capital gain, spans tax years, is disputed, or arises in more than one country. TaxProof can organise the evidence schedule and records for professional review.