Tax and SARS knowledge base
What is the NR02 declaration and who sends it to SARS?
What is the NR02 declaration and who sends it to SARS?
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Direct answer
NR02 is SARS's declaration by the purchaser for a sale of South African immovable property by a non-resident. SARS says the purchaser, conveyancer or estate agent must complete and submit NR02, while the seller or representative uses NR03 to apply for a tax directive. The two forms deal with different responsibilities and may both be relevant to the same transaction.
Use NR02 where the section 35A withholding rules need to be addressed. Do not rely on a seller's verbal statement or on an NR03 application alone. The conveyancer should coordinate the paperwork with the sale agreement, transfer-duty process and any SARS directive.
What this means in practice
The purchaser-side declaration records the transaction, parties and withholding context. SARS's guide specifies information for the seller, property, purchaser or conveyancer, relevant representative and withholding calculation. Complete the form from signed transaction documents and current taxpayer records, not from an informal summary.
Section 35A does not apply if aggregate amounts payable by the purchaser to the seller and persons for or on behalf of the seller do not exceed R2 million. Where the threshold is exceeded and the seller is non-resident, SARS publishes standard withholding percentages by seller type. An NR02 file should show how the team considered the threshold, the seller type, the published amount and any NR03 directive.
Step-by-step
- Confirm the seller's apparent tax-residency position early and refer uncertainty to a tax adviser. Do not decide the issue from nationality alone.
- Obtain the signed deed of sale, title-deed property description, consideration and payment schedule. Identify all amounts payable for the acquisition.
- Apply the R2 million threshold test documented in the SARS guide. Record the calculation and whether section 35A applies.
- Get the current NR02 form from SARS. Complete the seller's particulars, including identity or entity data, tax reference where available, country of residence and address details.
- Complete the property description and purchaser, conveyancer or estate-agent particulars accurately. Check names and references against the agreement and transfer file.
- Record the year of assessment, date, receipt information where applicable, gross selling price and the published percentage if withholding applies. Use a SARS directive where one was issued instead of overriding it with a spreadsheet assumption.
- Submit NR02 with the deed of sale through the current SARS process. SARS's guide says that when applying for a Transfer Duty receipt, the conveyancer must identify whether section 35A applies and upload NR02 or NR03 with the deed of sale.
- Keep proof of submission, directive correspondence, payment evidence and the transfer-duty record. Reconcile the file before funds are released.
Documents and records to keep
- Signed sale agreement, title-deed description and transfer timetable.
- Seller residency representation, contact details and entity documents.
- NR02, any NR03 and SARS directive.
- Calculation of consideration and withholding treatment.
- SARS acknowledgements and proof of payment.
Important limits and exceptions
NR02 does not determine final tax. SARS says the withholding amount is an advance payment in respect of the seller's normal-tax liability for the year of disposal. The seller still needs to submit the relevant return and deal with the final assessment.
The buyer, conveyancer and estate agent should not use a generic article as a substitute for the statute and transactional advice. A small factual error in seller status, threshold, payment timing or directive handling can have material consequences.
When to get tailored advice
Obtain advice where the seller is a trust or company, is potentially resident, asks for an NR03 directive, receives instalments or the transaction is close to completion. Coordinate tax and conveyancing advice before payment instructions are final.