SARS: Procedure to change banking details for Personal Income Tax (Individuals)

SARS is responsible for protecting taxpayers against unauthorised changes to their personal details. Taxpayers wishing to register or change their banking details must visit a SARS branch in person and present the documentation required for verification before SARS will process any changes to their banking details.

Requirements for different types of bank accounts

1. Own bank account:

• The account holder must visit a SARS branch in person with the documentation set out in point 1, 2 and 3 below.

2. Joint bank account:

• Both account holders must visit a SARS branch and each of them must take with them the documentation set out in point 1, 2 and 3 below.
• SARS will verify both account holders’ details before registering or changing banking details.

3. Third party bank account:

• The main account holder must visit a SARS branch in person and take with him/her the documentation set out in point 1, 2 and 3 below.
• If a refund is due to the taxpayer who is the third party, he/she will have to open their own bank account. SARS will not pay the refund into the account of the main account holder.

Can I send someone else to  the SARS branch on my behalf if I give them power of attorney?

No. The taxpayer must still visit a SARS branch in person to register or verify his/her banking details except for certain exceptional circumstances set out in the following paragraph.

The exceptional circumstances where SARS will allow registration and verification of banking details by someone else than the taxpayer, provided that the other person has power of attorney, are when the taxpayer is:

1. An estate due to death or sequestration

2. Incapacitated or terminally ill

3. A non-resident (emigrant/expatriate/foreigner/temporarily outside South Africa)

4. In jail

5. Under 18 years of age

Documentation required for verification of banking details

1. Proof of identity:

Original and valid ID document/Passport/Driver’s Licence/Asylum Seeker’s Permit plus one certified copy thereof

2. Proof of banking details:

2.1 Copy of bank statement with original bank stamp or ABSA eStamped statement

• Not more than three months old
• Must confirm account holder’s details:
  1. Legal name of account holder
  2. Account number
  3. Account type
  4. Branch code

or

2.2 Taxpayer opened a new bank account but have not received a bank statement yet

• Original letter stamped by bank on bank’s letterhead confirming:
  1. Legal name of account holder
  2. Account number
  3. Account type
  4. Branch code
  5. Date on which bank account was opened

3. Proof of residential address:

Copy of any one of the documents listed below.

3.1 Document not older than three months:

1. Municipal account
2. Student fee account
3. Co-op statement (farmers)
4. Medical aid statement
5. Telephone account
6. Court order
7. Subpoena
8. Traffic fine
9. Documents relating to UIF or pension payout

3.2 Document not older than six months:

1. Mortgage statement from mortgage lender

3.3 Document not older than 12 months:

1. Motor vehicle licence documents
2. Life assurance document
3. Short-term insurance document
4. Health insurance document
5. Funeral policy document
6. Statement from share, portfolio or unit trust investment
7. Current and valid lease/franchise agreement

3.4 If none of the above documentation is applicable/available, the taxpayer must complete and submit Form CRA01.

1. If proof of residence is in the name of a third party, the taxpayer must submit together with CRA01 a certified copy of the ID document/temporary ID/passport/driver’s licence of the third party.

Tips

• Make sure you have all the required documentation when you go to SARS otherwise SARS will not update your banking details. You will need to get all the documentation together and go to a  SARS branch again.
• Make sure that the following stamps appear on all certified copies of documents:
  • “True Copy”
  • Commissioner of Oaths
• Ensure that copies are certified by a person authorised to do so, for example SAPS/SAPO/attorneys.
• SARS does not permit credit card/mortgage/foreign bank accounts for refund purposes.

SARS is taking their responsibility to protect taxpayers’ banking details seriously. Despite the inconvenience, it is to the taxpayer’s benefit to confirm their banking details with SARS to ensure that the taxpayer entitled to the refund will actually be the person to receive the refund.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

References:

• IT-ACM-06-G01 – Change of Banking Details for Personal Income Tax – External Guide
• GEN-BR002 – Changing Your Banking Details – External Brochure