How to navigate tax residency, formal emigration, and avoid unexpected tax bills.

Why tax matters when you relocate

Many South Africans assume that leaving the country automatically ends their tax obligations however, this is not the case. South Africa uses a residency‑based tax system, meaning if you are a tax resident, SARS may tax your worldwide income and assets. (Refer here for more detail on these regulations: SARS: Ceasing Tax Residency)

Even after moving abroad, unless you formally notify SARS and satisfy their residency tests, you may continue to be treated as a resident, which could lead to ongoing tax liability or penalties.

Key concepts you need to understand

What makes you a tax resident?

SARS uses two main tests:

  1. Ordinarily resident test – your “home” is determined by family, social, and economic ties to South Africa.
  2. Physical presence test – if you have spent enough time in South Africa during the relevant years. To cease residency under this test, you must spend 330 full days outside South Africa in a 12‑month period, among other criteria.)

Ceasing tax residency is a formal process

Leaving the country is not enough. You must notify SARS using the RAV01 form via eFiling, providing your departure date and supporting documentation.

Once you have ceased, you are generally taxed only on South African-sourced income or assets, not your global income.

Deemed disposal (“exit tax”) may apply

When ceasing tax residency, SARS treats your worldwide assets (excluding South African immovable property) as disposed of on the date of cessation. This may trigger capital gains tax (CGT). Some assets, such as retirement funds, may have different treatment. (SARS: Deemed disposal CGT)

Practical checklist before you “exit”

  • Confirm your departure date clearly.
  • Gather proof of new residence (visa, lease, utility bills) and evidence that your SA ties have been reduced.
  • Submit the RAV01 form on SARS eFiling to declare cessation of tax residency.
  • Identify and value your worldwide assets to assess potential CGT exposure.
  • Determine your post-residency SA income obligations (rentals, dividends, annuities).
  • File a final tax return for the year of departure, ensuring all income and capital gains are correctly reported.
  • Check alignment of financial emigration for exchange-control purposes with your tax residency status.

Common mistakes to avoid

  • Assuming leaving SA automatically ends tax residency – formal notification is required.
  • Ignoring South African-sourced income post-departure – you are still taxed on SA-sourced income.
  • Overlooking CGT on deemed disposal – some assets may have significant tax costs if not planned for.
  • Seek professional advice early – asset structure, trusts, foreign income, and cross-border issues vary for every individual.

Why it matters

Proper planning when leaving South Africa can help you:

  • Minimise tax on foreign income after departure.
  • Ensure smooth access to retirement funds or foreign investments.
  • Avoid unexpected penalties or blocked tax-clearance certificates.

How MyTAX Can Help

We provide end-to-end guidance:

  • Ceasing tax residency and submitting RAV01 forms.
  • Final tax return preparation and CGT planning.
  • Assessment of SA-sourced income obligations post-residency.
  • Trust and private-wealth reviews for cross-border assets.
  • Advice for property and business clients on cross-border flows and FX implications.

Leaving South Africa is exciting, but your tax affairs need careful planning. Correctly ceasing tax residency, valuing assets, and filing your final returns ensures a smooth transition without surprises from SARS. Early preparation and expert guidance make all the difference.