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South African taxpayers can't ask SARS to help resolve double-tax disputes on income from Zambia, Malawi, Sierra Leone, or Grenada.
In its updated Guide on Mutual Agreement Procedures, dated 23 October 2026, SARS highlights a longstanding gap in these older tax treaties.
Normally, a mutual agreement procedure (MAP) allows the two countries' tax authorities to work together when they disagree about how income should be taxed under their tax treaty.
Without this option, affected clients must rely on South African tax relief or challenge the tax in the other country.
Older tax treaties leave a gap in dispute resolution
South Africa's tax treaties with Zambia, Malawi, Sierra Leone, and Grenada date back several decades. According to SARS's overview of tax treaties, the Zambia agreement took effect in 1956, followed by Sierra Leone and Grenada in 1960, and Malawi in 1971.
South Africa has been working on updated agreements with Zambia and Malawi, but neither has been signed and brought into effect yet.
For example, South Africa and Malawi can work together to decide which country should treat someone as a tax resident if both countries claim them. However, if they disagree about which country has the right to tax a company's profits or a consultant's income, the treaty doesn't offer the same way to resolve the dispute.
SARS also confirms that taxpayers can't use this dispute-resolution process if South Africa has no tax treaty with the other country at all.
Which clients are most affected?
Nicolene Smit, education manager at CIBA, says the issue affects both individuals and businesses earning income from these countries.
This includes consultants, employees working abroad, investors earning rental income or dividends, and companies operating across borders.
However, paying tax in two countries doesn't always mean the client ends up paying twice. South Africa may allow a tax credit for money already paid overseas, although this might not cover the full amount.
For example, if Zambia deducts more tax from a South African consultant's earnings than the treaty allows, the client might need to claim the excess back from Zambia rather than expect SARS to cover it.
Read more: How to stop clients losing money to foreign withholding tax
Smit recommends checking why both countries taxed the income in the first place. This means establishing where the client is registered for tax, where the income came from, and whether the foreign country was entitled to charge the tax.
“I would involve a practitioner in Zambia or Malawi early and protect the objection and refund deadlines in both countries,” says Smit.
Without the option of asking SARS to negotiate a solution, accountants need to work directly with tax professionals in the other country to resolve disputes.
Have a look at our guide to withholding tax to learn more about how tax deducted from payments should be recorded and accounted for.
Check the tax position before clients sign
Smit recommends checking the tax implications before a client signs a contract or invests in one of these countries. Accountants should establish where the client is liable for tax, whether they need to register in the other country, and whether any tax will be deducted from their payments.
For businesses, it's also important to check whether their activities could make them liable for tax in the other country, even if they're based in South Africa.
“For employment, check the full treaty conditions rather than relying on a simple day count,” Smit says.
She also recommends making sure contracts clearly state who is responsible for foreign taxes and what proof of payment must be provided. This helps clients understand their tax costs before agreeing to a price.
Other countries have already updated their agreements with Zambia. For example, the UK signed a new tax treaty with Zambia in February 2014.
SARS also confirms that South Africa hasn't agreed to make independent arbitration a standard option for unresolved tax disputes. Although its treaties with Canada, the Netherlands, and Switzerland include arbitration provisions, these don't apply to disputes involving Zambia, Malawi, Sierra Leone, or Grenada.
