AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
If you are a South African tax resident, answer yes to the ITR12 wizard question about foreign income (and the investment income question for Nigerian interest and dividends); this opens the Foreign Income section, where you enter the rand amounts and claim a rebate for Nigerian tax paid. Keep proof of the Nigerian tax for five years. For the 2026 return season SARS gives non-provisional taxpayers until 23 October 2026.
First, check you need to declare it
Only South African tax residents declare worldwide income. SARS taxes non-residents on South African-source income only, according to its Taxation in South Africa 2026 guide. If you are not sure which you are, start with the SARS residence tests. If you are resident, naira income counts even if it never leaves Nigeria: rent from a flat in Abuja, interest on a fixed deposit, dividends on Nigerian shares, or fees from Nigerian clients.
The wizard questions that open the right pages
The ITR12 builds itself from the wizard on the first page. SARS's comprehensive ITR12 guide (Revision 40, effective 29 June 2026) describes the questions that matter for Nigerian income:
- Foreign income
- Answer yes to "Did you receive any foreign income apart from foreign interest and foreign dividend income". This opens the Foreign Income section and the Local Statement of Assets and Liabilities.
- Foreign interest and dividends
- Answer the investment income question. It covers local and foreign interest and taxable foreign dividends.
- Foreign capital gains
- Answer the foreign disposal question if you sold Nigerian property or shares. Each foreign disposal is declared separately, up to ten on the return.
- Foreign employment
- From the 2025 year of assessment, there is a field for pay for work done outside SA that appears on your IRP5/IT3(a).
- Foreign income taxed abroad
- From the 2025 year, mark the field for foreign income taxed outside SA that is not on an IRP5 and does not qualify for the section 10(1)(o) exemption; amounts then go next to source codes 4298 and 4304.
Where each kind of Nigerian income goes
| Nigerian income | Where it goes on the ITR12 | Nigerian tax you may be able to credit |
|---|---|---|
| Rent from Nigerian property | Foreign Income section (local rental figures go elsewhere) | Withholding tax deducted by the tenant |
| Interest on a naira deposit | Investment income, foreign interest | Withholding tax on interest (credit code 4113) |
| Dividends from Nigerian shares | Investment income, foreign dividends | Withholding tax on dividends (credit code 4112) |
| Fees or salary from Nigeria | Foreign Income section or the IRP5 foreign employment field | Nigerian PAYE or withholding tax, if any |
| Sale of Nigerian land or shares | Foreign capital gain, one entry per disposal | Nigerian tax on the gain |
PwC's Nigeria summary (reviewed 29 May 2026) lists Nigeria's domestic withholding tax at 10% on dividends, interest and rent, and a 7.5% cap on dividends, interest and royalties under the South Africa treaty. Your Nigerian bank or registrar shows what was actually deducted.
Converting naira to rand
Every figure on the ITR12 is in rand. SARS's Interpretation Note 63 (Issue 2, 12 August 2015) says foreign currency amounts are translated at the spot rate on the date received or accrued, but an individual may elect the average exchange rate for the year instead. The election covers all your foreign currency amounts for that year, is made when you complete the return and can differ from year to year; SARS publishes average rate tables. Note the rate and its source next to each figure in your records.
Claiming the Nigerian tax back as a credit
SARS gives residents a rebate, or in some cases a deduction, for foreign tax paid or payable where there is no right to get that tax back, and says proof of the foreign tax must be submitted. The rebate cannot exceed the South African tax on that foreign income. The mechanics and examples are in claiming SARS foreign tax credits for tax paid in Nigeria.
Steps
- Gather a year of Nigerian statements, tenancy agreements, dividend vouchers and withholding tax receipts or credit notes.
- Convert each amount to rand and keep the workings.
- Answer the wizard questions above, then enter amounts in the sections they open.
- Enter Nigerian tax paid in the foreign tax credit fields for that income.
- Upload supporting documents if SARS asks. The guide says uploads must not be password protected, and you must keep documents for five years from submission.
Where Pryme fits
SARS wants evidence, not totals. A Pryme account keeps naira income separate from USD, GBP and EUR, and our partner VerifyDoc.ai lets you generate a verifiable statement or receipt that anyone can check is unaltered (statements and receipts, multicurrency account). For rent collected in Nigeria, see declaring Nigerian rental income to SARS. This page is information, not tax advice.
Questions people ask
Do I declare my Nigerian rent to SARS?
Yes, if you are a South African tax resident. Residents are taxed on worldwide income, so Nigerian rent goes in the Foreign Income section, with a credit for Nigerian tax paid.
Which ITR12 question shows the foreign income section?
The wizard question "Did you receive any foreign income apart from foreign interest and foreign dividend income". Foreign interest and dividends are handled through the investment income question instead.
What proof does SARS want for Nigerian tax paid?
SARS says proof of the foreign tax must be submitted. In practice that means withholding tax receipts or credit notes, a Nigerian tax assessment or official payment evidence, kept for five years.
What is the deadline to file the ITR12 in 2026?
SARS's ITR12 guide gives 23 October 2026 for non-provisional taxpayers and 22 January 2027 for provisional taxpayers filing on eFiling.
Sources
- SARS: Comprehensive Guide to the ITR12 Income Tax Return for Individuals (IT-AE-36-G05, Revision 40, effective 29 June 2026) · accessed Oct 2026
- SARS: Taxation in South Africa 2026 (dated 30 September 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- SARS Interpretation Note 63 (Issue 2, 12 August 2015): translation of amounts in foreign currencies · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.