Left South Africa for a new international adventure? You might think that simply packing up and leaving means you’re off the hook for SA taxes – but that’s not the case. Until you officially cease tax residency in South Africa, the South African Revenue Service (SARS) can still tax you on your worldwide income. That’s where tax emigration from South Africa comes in. It’s the process of cutting your tax ties with SA, and it can feel confusing if you don’t know where to start.
To make things easier, we’ve rounded up the most common questions we receive about breaking tax residency with South Africa – and the answers you need to know.
What is a tax resident in South Africa?
SARS considers you a tax resident in South Africa if you meet either the ordinarily resident test (SA is still your home) or the physical presence test (you’ve spent enough time in SA over a set number of years).
If you meet either test, you’re taxed on your worldwide income – even if you live abroad. The only way to stop this is to cease tax residency in South Africa by officially notifying SARS through the process of tax emigration.
Read more: South African tax residency rules – expats, are you still tax residents of South Africa?
How do I become a non‑tax resident of South Africa?
To become a non‑tax resident of South Africa, you must complete the tax emigration process, which involves:
- Submitting a SARS RAV01 form on eFiling to update your details.
- Completing a declaration to cease to be a tax resident as part of this submission.
SARS will review your application and may request supporting documents to prove that you no longer meet the residency tests. Once SARS approves your request, your status changes to SARS non‑tax resident. From that point, you’ll only pay tax on South African‑sourced income, such as rental from local property or dividends from SA shares.
Read more: Tax emigration – how to become a non-tax resident of South Africa.
Do I need to tell SARS I’ve emigrated?
Yes. SARS expects you to record your tax emigration from South Africa within 21 days of leaving the country. Until you do, you’ll still be seen as a resident for tax purposes in South Africa and liable for tax on both local and worldwide income.
The good news? If you didn’t inform SARS at the time, you can still apply retrospectively to cease tax residency in South Africa from the date you left.
Read more: Left South Africa without informing SARS? What now for your tax resident status?
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What forms do I need for tax emigration?
The main form you’ll need is the RAV01 form, submitted via SARS eFiling, to update your tax residency status. As part of this, you’ll complete a declaration to cease to be a tax resident.
If you plan to move funds abroad after tax emigration, you’ll also need to apply for a Tax Compliance Status (TCS) PIN and an Approval for International Transfer (AIT SARS). The AIT application is part of the process to get approval for transferring funds out of South Africa.
Read more: Emigration and changing your tax resident status after leaving South Africa.
What is the difference between financial emigration and tax emigration?
There’s still some confusion about financial emigration vs tax emigration. In the past, financial emigration from South Africa was an exchange control process handled by the South African Reserve Bank. It changed your status to non-resident, purely for exchange control purposes. That process ended in 2021.
Today, you deal with SARS. The correct process is tax emigration from South Africa, which means officially breaking tax residency with South Africa by becoming a non-resident for income tax purposes.
Read more: Dangerous misconceptions about financial and tax emigration from South Africa.
Does tax emigration affect my South African citizenship?
No – your passport and citizenship are safe. Ceasing tax residency in South Africa is purely a tax process. It does not affect your citizenship, your right to own property, or your ability to return to South Africa.
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What happens tax‑wise when I emigrate?
When you cease tax residency in South Africa, SARS treats this as a capital gains tax (CGT) event, often called an “exit tax.”
This means SARS will calculate CGT as if you had sold your worldwide assets (except for South African immovable property and retirement funds) on the day before you became a non‑resident.
Because the exit tax calculation can be complex and depends on the value of your global assets, it’s best to get professional assistance to make sure everything is done correctly and to avoid unexpected tax bills.
Read more: Expat essentials – understanding Capital Gains Tax in South Africa.
Can I return to South Africa after tax emigration?
Yes. Returning to South Africa after tax emigration is possible. If you move back permanently, you’ll simply resume tax residency in South Africa. Tax emigration does not affect your right to live, work, or invest in SA.
What are the benefits of tax emigration from South Africa?
Some of the main benefits of tax emigration from South Africa include:
- No longer paying tax in SA on your worldwide income. Once you are a non‑resident, SARS can only tax you on income sourced in South Africa.
- Access to your retirement annuity savings after three years. After you’ve been a non‑resident for three consecutive years, you can withdraw your retirement annuity funds (subject to tax).
- Simpler international money transfers. With a Tax Compliance Status PIN and an Approval for International Transfer (AIT SARS), moving money abroad becomes easier and fully compliant with SARS requirements.
Read more: Why tax emigration makes sense even without financial ties to South Africa.
Can I keep a South African bank account after tax emigration?
Yes, but it should be classified as a non‑resident South African bank account. If you don’t already have one, you can explore opening a non‑resident bank account in South Africa to manage local income or investments.
Read more: Keeping your South African bank accounts and financial connections post-emigration.
Ready to make your tax emigration simple?
Tax emigration from South Africa might sound daunting, but with the right help, it doesn’t have to be stressful. You’ll need to get your paperwork in order and ensure you’re following the correct steps to determine residency for tax purposes. This is where FinGlobal can help. We’ve assisted thousands of expats to cease tax residency in South Africa, handling the entire tax emigration process from start to finish.
Contact FinGlobal today for expert, hassle‑free help with your tax emigration from South Africa.