Returning to South Africa after years abroad is an exciting step. Whether it’s reconnecting with family, enjoying biltong and boerewors again, or rediscovering your favourite local spots, there’s a lot to look forward to. But for South African expats returning home, there’s also the not-so-glamorous side of things: sorting out your tax affairs with the South African Revenue Service (SARS).

If you’ve previously ceased tax residency in South Africa or you completed financial emigration before it was phased out, you’ll need to notify SARS of your return and update your residency status. This is what people often call the “reinstatement of tax residency” process. While SARS doesn’t have an official process by that exact name, there is a clear way to update your profile, reactivate your tax number, and ensure you’re compliant once again.

What are the tax residency rules in South Africa?

Let’s clear up what it means to be a tax resident in South Africa. Being a tax resident means SARS considers you liable to pay tax on your worldwide income — not just what you earn in South Africa.

The South Africa tax residency rules as applied by SARS stipulate that there are two tests to decide this:

1. The ordinary residence test: If South Africa is your true, settled home — the place you return to and intend to stay indefinitely — you are a resident for tax purposes South Africa.
2. The physical presence test: If you spend a certain number of days in South Africa over a rolling period, you may also be considered a tax resident, even if you regard another country as “home.”

If you’re going back to South Africa permanently, you’ll likely fall under the ordinary residence test from the moment you return with the intention to settle.

Read more: Left South Africa without informing SARS? What now for your tax resident status?

What about returning to South Africa after financial emigration?

Here’s where some confusion arises. Many South Africans formally completed financial emigration through the South African Reserve Bank (SARB) before the process was phased out in 2021. This allowed people to shift to “non-resident” status for exchange control purposes and was usually done for the purposes of retirement annuity encashment.

But — and this is the kicker — financial emigration did not automatically change your tax status with SARS.

Today, financial emigration has been replaced by tax emigration: a SARS process where you declare yourself a non-resident for tax purposes. If you went through financial emigration back then, and you’re now returning to South Africa after financial emigration, you’ll still need to clarify your status with SARS to ensure your tax records are up to date.

Read more: Returning to South Africa after financial emigration – what expats need to know about coming home.

Reactivating your SARS tax number as a returning expat

So how do you become a tax resident again? For South Africans returning home, the process involves updating your details with SARS. This is sometimes referred to as the “reinstatement of tax residency.”

Here’s what you need to know:

1. Use the RAV01 form – To notify SARS of your change, you’ll need to complete the RAV01 form on eFiling. This is also known as the SARS reactivate tax number form.
2. Update your details – The form allows you to correct personal information, confirm your return to South Africa, and declare your intention to live here permanently. This is effectively how you change your status from non-resident back to resident.
3. Submit via eFiling – Once submitted, SARS will update your profile and reactivate your tax number.
4. Processing time – SARS generally completes this update within 21 working days, though more complex cases can take longer.

So, when people ask, “how do I reactivate my tax ID number?”- the short answer is: log into eFiling, complete the RAV01 form, and let SARS know you’re ready to holler back.

Read more: Taxes in South Africa: when, how, and why you need a SARS tax number.

What changes once you’re a South African tax resident again?

After your details are updated, you’ll once again be treated as a tax resident in South Africa. To SARS, this means:

• You’ll be liable for South African tax on your worldwide income (including foreign salaries, rental income, investments, dividends, and interest).
• You may need to report and potentially pay capital gains tax on foreign assets acquired while you were abroad.
• Your global estate may be subject to South African estate duty rules.

For South African expats returning home, this can feel like a big shift, especially if you’ve enjoyed years of non-resident tax treatment. But getting it right from the start ensures a smoother transition and avoids SARS penalties.

Read more: Warning – SARS is monitoring South African expats abroad who want to return home.

Common questions about returning to South Africa

1. What is tax residence?

It’s the status that determines whether you’re taxed in South Africa on worldwide income or only on income from a South African source.

2. Foreign tax resident meaning?

That’s someone recognised as a tax resident of another country under its laws, not South Africa’s.

3. What is a tax resident in South Africa?

Anyone who meets either the physical presence test or the ordinary residence test, meaning SARS considers them liable for tax on global income.

Tips for a smooth transition for expats returning to South Africa

1. Act quickly – SARS expects you to update your details within 21 working days of your return.
2. Check your history – Make sure your past non-resident returns are correct before switching back.
3. Understand your obligations – Once you’re a tax resident in South Africa, all worldwide income needs to be declared.
4. Get help if needed – Professional advice can help navigate South African tax law for expats, especially if you have complex investments or offshore assets.

Read more: Returning to South Africa? Tax implications for the non-compliant expat’s homecoming.

Key takeaways for expats coming home to South Africa

• If you’re returning to South Africa, you need to update your details with SARS to be recognised again as a tax resident.
• This isn’t a separate “official” tax residency reinstatement process — it’s handled by completing the RAV01 form on eFiling.
• If you previously went through financial emigration, remember that it did not affect your tax residency. You’ll still need to clarify your tax status with SARS.
• SARS typically processes changes within 21 working days, but you shouldn’t leave anything to the last minute.
• Once you’re a resident for tax purposes in South Africa again, you’re liable for tax on your worldwide income.
• Reviewing past returns and seeking guidance on South African tax for expats can make the move smoother.

Read more: Expat tax compliance: take action now to avoid financial penalties from SARS.

FinGlobal: ready to help South Africans returning home

Coming back to South Africa shouldn’t have to mean drowning in tax admin. Whether you’re clarifying your status after financial emigration, or you’re uncertain about completing the RAV01 form, or trying to understand how South African tax residency rules affect you, FinGlobal has you covered. With more than a decade of helping expats manage cross-border tax, we’ll ensure you meet SARS requirements quickly and correctly.

Let FinGlobal’s team of cross-border experts handle your expat tax compliance while you focus on building your life back home. Leave your contact details below and we’ll be in touch.