SARS recognises two routes to South African tax residency for individuals: being ordinarily resident, or meeting the physical presence test. Meeting either one makes you a tax resident, taxable on worldwide income. Leaving the country does not by itself end that status. You must stop meeting the tests and declare the date you ceased to be resident to SARS. The official position is on the SARS cease-to-be-resident page.
This page covers individuals. Companies and trusts have their own residence tests and are not dealt with here.
Business Requirements at a Glance
- Ordinarily resident: decided case by case on all the facts, including your intention, your most fixed and settled place of residence and your habitual abode.
- Physical presence: more than 91 days in the current year of assessment, more than 91 days in each of the five preceding years, and more than 915 days in total across those five years.
- Ceasing residence: declare the date to SARS through the RAV01 on eFiling or on your ITR12, then supply the supporting documents SARS requests.
- Tax effect: a deemed disposal of your worldwide assets for capital gains tax purposes, excluding immovable property in South Africa.
- Afterwards: you are taxed in South Africa only on South African-sourced income.
Registration and Legal Requirements
Since 1 March 2001 South Africa has taxed residents on worldwide income and non-residents on South African-sourced income. Which side of that line you fall on depends on two tests.
Ordinarily resident. The term is not clearly defined, so SARS looks at all the facts. Where you intend to live, where your most fixed and settled home is and where you habitually live all count. SARS explains its approach in Interpretation Note 3.
Physical presence. All three day-count conditions must be met: more than 91 days in the current year of assessment, more than 91 days in each of the five preceding years, and more than 915 days in aggregate over those five years. A part of a day counts as a day. See Interpretation Note 4. For individuals the year of assessment runs from 1 March to the end of February.
Double tax agreements. If a double tax agreement deems you to be exclusively a resident of another country, you are not a South African tax resident, even if you meet the tests above.
Documents and Ownership Information Required
SARS asks for supporting documents once you have declared that you ceased to be resident. The standard documents are:
- a signed declaration
- a letter of motivation setting out the facts
- a copy of your passport or travel diary, including every page with customs entry and exit stamps
If you are ceasing to be ordinarily resident, SARS also expects:
- your visa type abroad
- proof of permanent residence abroad
- a certificate of tax residence, or a letter from the foreign revenue authority confirming you are regarded as a tax resident, where one is available
- details of your South African property, business interests, family and social ties, and any return visits
Keep your travel records. Day counts and the date you left are what SARS tests against.
Tax, Licence and Compliance Requirements
When you cease to be a resident, you are treated as having disposed of your worldwide assets for capital gains tax purposes. SARS describes this as a deemed disposal that happens when you break your tax residence, and it excludes immovable property situated in South Africa. Under section 9H, assets are treated as disposed of at market value, and the property exclusion does not extend to equity shares in a land-rich company. Many people call this “exit tax”, but SARS calls it a deemed disposal. It can produce a tax liability even though nothing was sold.
After you cease to be resident, South Africa taxes you only on South African-sourced income, rather than on your worldwide income. The SARS guidance sets out how the deemed disposal works. Speak to a registered tax practitioner before you leave if you hold significant assets.
Process, Deadlines and Ongoing Obligations
Ending residence by physical presence. If you are a resident only through the physical presence test, you cease to be resident when you are outside South Africa for a continuous period of at least 330 full days. Residence ends from the day you left.
Ending ordinary residence. You cease to be ordinarily resident from the day you ceased your residence. That is shown by your intention, supported by objective factors such as a settled home abroad.
How to declare it. Use the Registration, Amendments and Verification form (RAV01) on eFiling and capture the date under Income Tax Liability Details, or capture the date on your ITR12. SARS then requests your supporting documents. See the SARS notice on the cease to be a resident process. SARS says cessation must be declared when you cease residence. It does not set a number of days, so confirm timing with SARS.
Tax compliance status. Complete the cease-to-be-resident process before you request a Tax Compliance Status as a non-resident. Since 21 April 2023, emigration and foreign investment allowance applications have been combined into one “Approval International Transfer” TCS application. See SARS on managing your tax compliance status.
Frequently Asked Questions
Does emigrating end my tax residency?
Not automatically. You remain a resident while you are ordinarily resident or meet the physical presence test. You must also declare the date you ceased to be resident to SARS.
What are the two residency tests?
Ordinarily resident, which SARS decides case by case on intention, your most fixed and settled home and your habitual abode. And physical presence: more than 91 days this year and in each of the previous five years, plus more than 915 days across those five years.
What is exit tax?
It is the deemed disposal of your worldwide assets for capital gains tax when you cease to be a resident. It excludes immovable property in South Africa. SARS does not use the term “exit tax” in its own wording.
How many days outside South Africa do I need to stop being a tax resident?
If you are resident only through the physical presence test, you cease to be resident after at least 330 continuous full days outside South Africa. Ordinary residence works differently and depends on the facts.
How do I tell SARS I have ceased to be a tax resident?
Submit the RAV01 on eFiling with the date you ceased residence, or capture the date on your ITR12. SARS will then ask for your supporting documents.
Do I still pay tax in South Africa after I cease to be resident?
Only on South African-sourced income. You are no longer taxed on your worldwide income.
Is financial emigration still available?
Emigration and foreign investment allowance applications were consolidated into the single Approval International Transfer TCS application on 21 April 2023. Check the current process with SARS.
Confirm your position with SARS or a registered tax practitioner before acting. See business and compliance requirements and, if you run a business, company registration requirements.