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The short answer
If you are a South African tax resident, declare income from Nigeria such as fees, salary, rent, interest and dividends, because SARS taxes residents on worldwide income. Your own savings and gifts from family in Nigeria are not income; SARS says non-resident donors are not liable for donations tax. Your bank separately reports each inward payment to the SARB.
The test is what the money is, not where it came from
SARS does not tax money because it arrived from Nigeria. It taxes income, and whether you must declare depends on two things: whether you are a South African tax resident, and what the money is. A transfer of your own savings is not income. A gift from your mother is not income to you. A freelance fee from a Lagos client is income. Interest on a Nigerian savings account is income. Each needs to be treated on its own.
Step one: are you resident?
SARS's Tax and non-residents page (last updated 19 August 2026) says residents are taxed on worldwide income, subject to certain exclusions, while non-residents are taxed only on South African-source income. You are resident if you are ordinarily resident (South Africa is your real home) or meet the physical presence test: more than 91 days in South Africa in the current tax year, more than 91 days in each of the five previous tax years, and more than 915 days in total over those five years. See the residence test for Nigerians.
If you are not yet resident, Nigerian income such as rent from a Lagos flat is, in general, outside SA tax. If you are resident, it is in.
Step two: what is the money?
| Money from Nigeria | SA tax treatment if you are resident | What to keep |
|---|---|---|
| Your own savings moved to SA | Not income; the transfer itself is not taxed | Nigerian statements showing the balance |
| A gift from family | Not income to you; SA donations tax applies only to resident donors | A note of who gave it and why |
| Freelance or consulting fees | Taxable income | Invoices, contracts, any Nigerian tax receipts |
| Salary for work in Nigeria | Taxable, but may qualify for the foreign employment income exemption | Payslips, travel records |
| Rent from Nigerian property | Taxable income | Tenancy agreement, receipts, expenses |
| Interest or dividends | Taxable income | Bank or broker statements |
| Loan from a relative | Not income, but must be repaid | Written loan terms |
Gifts
SARS's donations tax page says the donor is liable for donations tax and that "non-residents are not liable for donations tax". So a gift from a parent living in Nigeria does not create donations tax for either of you in South Africa. The rules matter the other way round: if you, as a South African resident, give money to family, the first R150,000 you donate in a year of assessment is exempt and the rest is taxed at 20% up to R30 million, according to the same page (last updated 19 August 2026). Gifts between spouses are exempt.
Employment income earned abroad
If you were employed and worked outside South Africa for more than 183 full days in a 12-month period, including more than 60 continuous days, the first R1.25 million can be exempt under section 10(1)(o)(ii). Independent contractors do not qualify. See the 183-day rule.
What your bank reports
Your bank reports every cross-border payment to the SARB, whatever the amount, under the SARB's Currency and Exchanges Guidelines for Individuals (version 1.69, 7 January 2026). It records a Balance of Payments reason, which you give when you declare the payment. That report is an exchange control record rather than a tax return, but it describes the money, so the reason you give should match what you later tell SARS. The same guidelines say individuals may receive and keep abroad monetary gifts from non-resident sources without declaring them to an Authorised Dealer, "subject to local tax disclosure and compliance".
SARS also receives financial account information from other tax authorities under international exchange agreements. Nigeria takes part in the Common Reporting Standard, according to a May 2026 ICTD working paper. Assume that SARS can see foreign accounts and declare accordingly.
How to declare taxable amounts
- Convert each amount to rand; keep a note of the rate and date used.
- Declare it in the right section of your ITR12 on eFiling: foreign employment, foreign business, foreign rental or foreign interest and dividends.
- Claim any Nigerian tax paid as a foreign tax credit under section 6quat, with proof.
- Keep records for SARS. See declaring Nigerian income on eFiling.
Records worth keeping
If SARS or your bank asks later, a short paper trail settles most questions. For each sizeable credit from Nigeria, keep the sender's name, the date, the amount in both currencies, what it was for and the BoP reason you gave. A one-line message from a relative saying the money is a gift, a loan agreement if it is a loan, or the invoice if it is a fee, is usually enough.
Where Pryme fits
Keeping income and family money apart makes tax time easier. A Pryme account can generate statements and verifiable receipts through VerifyDoc.ai, which you can keep as records. See receipts and statements.
Questions people ask
Do I pay tax on money my parents send from Nigeria?
A gift is not income to you, and SARS says non-resident donors are not liable for donations tax. Keep a note of what it was.
Does SARS know about money I receive from abroad?
Banks report cross-border payments to the SARB, and SARS receives account information from other countries under exchange agreements.
Is rent from my Lagos flat taxable in South Africa?
Yes, if you are SA tax resident. You can claim credit for Nigerian tax paid under section 6quat if the requirements are met.
How much can I give my family without donations tax?
SARS says the first R150,000 donated by a natural person each year of assessment is exempt.
Sources
- SARS: Tax and non-residents (last updated 19 Aug 2026) · accessed Oct 2026
- SARS: Donations tax (last updated 19 Aug 2026) · accessed Oct 2026
- SARB: Currency and Exchanges Guidelines for Individuals, version 1.69 (7 Jan 2026) · accessed Oct 2026
- SARS: Foreign employment income exemption (last updated 14 Feb 2025) · accessed Oct 2026
- ICTD Working Paper 240: Nigeria's implementation of tax standards for exchange of information (21 May 2026) · 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.