Cease to be an SA Tax Resident and Reinstatement of SA Tax Resident from SARS Website - Layman Version

South African Tax Residency Explained (2025 Update) For People Leaving or Working Abroad

 

Key Concepts:

• • South Africa taxes people based on where they live (residence), not just where they earn money. If you’re a tax resident, you pay tax on worldwide income. If you’re not a tax resident, you only pay tax on income from South African sources.

What Is a South African Tax Resident?

• • You are a tax resident if:
    • You live in South Africa regularly (this is called ordinarily resident), or
    • You’ve been in South Africa long enough during the last few years (this is called the physical presence test).
  • Even if you meet the rules above, you may still be considered a non-resident if you’re legally a resident of another country through a Double Tax Agreement (DTA) between that country and South Africa.

How Do I Stop Being a SA Tax Resident?

• • You stop being a tax resident if:
    • You Leave SA and Settle Abroad (Ordinarily Resident Test)
      • • To break tax residency, you must prove you’ve moved your life to another country. SARS will look at things like:
        • Type of visa you have
        • Proof of permanent residence overseas
        • Tax residency certificate from the new country
        • If you still own property or have a job/investments in SA
        • Where your family lives
        • Social ties (e.g. gym, clubs, bank accounts)
        • How often and why you visit SA
        • Date of exit is the day you no longer see SA as your permanent home.

You’ve Been Physically Out of SA for 330+ Days in a Row

• • You automatically lose tax residency if you’ve been outside South Africa for at least 330 full consecutive days.
    Your exit date is the day you left the country.

You Become a Tax Resident in Another Country via a DTA

• • If a Double Tax Agreement (DTA) treats you as a resident of another country, then you’re not a SA tax resident, even if you live in SA often.

What Happens When I Cease Tax Residency?

• • Capital Gains Tax (CGT) Exit Tax: SARS will treat it as if you’ve sold all your global assets (excluding property in SA). You may owe tax on these “deemed disposals”.
  • After exit, you’ll only be taxed on income from South African sources.

How to Tell SARS You’ve Ceased Tax Residency

• • You must notify SARS using the RAV01 form on eFiling.
    • Steps:
      • • Log into eFiling
        • Go to the RAV01 form
        • Under “Income Tax Liability Details”, enter the date you ceased being a tax resident
        • Submit the form and upload supporting documents
        • A case will be opened, and SARS will request documents to confirm your status.

Required Documents

 

Standard for All:

• • Signed declaration form
  • Motivation letter (explain why you believe you are no longer a SA tax resident)
  • Passport copy and travel diary (showing exit stamps)

Extra Based on Your Exit Type: If you left SA permanently:

• • Visa type
  • Proof of permanent residence abroad
  • Tax residency certificate or letter from foreign tax authority
  • Details of any property, family, or business still in SA

If you passed the 330-day rule:

• • Just the standard documents above

If you exited via a Double Tax Agreement (DTA):

• • Tax residency certificate or letter from the foreign authority

When Can SARS Reject My Declaration?

• • SARS may reject your declaration if:
  • You don’t meet the rules for ceasing residency
  • You fail to provide the correct documents

How to Confirm if You Already Ceased Residency

• • You can request confirmation by writing a letter to SARS. Include:
  • The background of your request
  • Why and when you ceased to be a resident
  • How you informed SARS at the time

Reinstating Tax Residency in SA

• • You become a tax resident again when:
  • You return to live in SA permanently (ordinarily resident), or
  • You meet the physical presence test again

To notify SARS:

• • Complete the RAV01 form on eFiling
  • Enter the date you became a SA resident again
  • No documents are required
  • If you make a mistake, contact SARS at contactus@sars.gov.za