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TAX EMIGRATION: WHAT IT REALLY TAKES TO BREAK TIES WITH SARS?

TAX EMIGRATION: WHAT IT REALLY TAKES TO BREAK TIES WITH SARS?

2May 12, 2025May 12, 2025
By FHBCIn Tax Compliance and Administration

Sien onder vir Afrikaans

Introduction

In recent years, we’ve seen many South Africans abroad grappling with one key issue: they’ve left the country, but SARS hasn’t quite let them go.  At FHBC, we’ve previously explored the mechanics of financial emigration, and the aftermath of its cancellation.  But now, more than two years into the new system, it’s becoming clear that many taxpayers remain in limbo — unaware that they’re still technically tied to the South African tax net.

From financial to tax emigration: A shift in the system

In our April 2021 article, we explained how the old financial emigration process via the South African Reserve Bank (SARB) came to an end on 28 February 2021.  This move effectively ended the formal SARB pathway to declare oneself a non-resident for exchange control purposes — a process that many also used to signal their tax exit from South Africa.

With this change, SARS assumed control of the emigration process.  As we clarified in our December 2022 article, the new focus is now entirely on tax residency — and ceasing it is not as simple as packing your bags and leaving the country.

Ceasing tax residency: It’s not automatic

A recent Accounting Weekly article (2024) explains the misconception many expats still hold: that physically leaving South Africa equals tax freedom.  The reality is quite different.

Unless you formally inform SARS, you are still considered a tax resident — and liable to pay tax on your worldwide income.  SARS requires you to declare cessation of residency via the RAV01 form on eFiling and to submit supporting documentation proving your status as a non-resident.

To be classified as a non-tax resident, you must demonstrate:

  • That you are no longer an “ordinary resident” in South Africa
  • That you don’t meet the physical presence test (183+ days in SA over 12 months, etc.)
  • That your centre of vital interests — such as work, family, and permanent home — has shifted abroad

Failing to meet these criteria means SARS could continue to tax you on foreign earnings and even audit you for non-compliance.

Exit tax: The financial implication

When you successfully cease tax residency, you trigger a deemed disposal of your worldwide assets — also known as exit tax or Capital Gains Tax.  SARS treats this as though you sold all your global assets the day before your tax residency ceased.

This tax can be significant, especially for those with foreign shares, property, or large portfolios.  It’s a critical part of the process and should be factored into your emigration planning.

Retirement funds: The three-year lock

One of the most notable consequences of the 2021 rule changes is the retirement fund restriction.  As we explained in our 2022 article, if you didn’t complete formal financial emigration before March 2021, your retirement annuity is now locked in for three consecutive years of non-tax residency.

Only after maintaining this status can you access and withdraw these funds — another reason why it’s vital to document your tax status with SARS sooner rather than later.

Practical next steps for expats

If you’re living abroad or planning to emigrate soon, here’s what FHBC recommends:

  1. Check your SARS status – Log into eFiling and see if you’re still classified as a tax resident
  2. Submit the RAV01 form – This is the official way to inform SARS of your status change
  3. Prepare supporting documents – You’ll need proof of foreign residence, employment, visas, and more
  4. Calculate exit tax early – Work with a tax advisor to avoid surprises when SARS assesses your deemed disposal
  5. Start the three-year clock – If you want access to retirement funds, ensure SARS acknowledges your non-residency

Final thoughts 

Tax emigration today is not about crossing borders — it’s about compliance, documentation, and strategic planning.  Whether you left last year or ten years ago, if you haven’t formally ceased tax residency, SARS still sees you as theirs.

At FHBC we can assist you with this urney.  From evaluating your current residency status to handling submissions and liaising with SARS, we offer clear, practical guidance through each step of the process.

Need help with tax emigration or retirement access planning?

If you are a current client of the FHBC Group of Companies, please contact the director managing your account.  Otherwise, reach out to our tax department (abritz@fhbc.co.za).  Contact us today to schedule a consultation.

BELASTINGEMIGRASIE: WAT DIT WERKLIK VERG OM VAN SARS TE SKEI

Inleiding

Dink u daaraan om te emigreer — of woon u reeds in die buiteland? U mag dalk verbaas wees om te hoor dat SARS u steeds as ‘n belastinginwoner van Suid-Afrika kan beskou, al het u lankal vertrek.

Die reëls rondom belastingemigrasie het die afgelope paar jaar verander en daarmee saam het die kompleksiteit van die proses toegeneem.  In hierdie artikel kyk ons na die huidige vereistes, nuutste verwikkelinge en wat dit in 2025 en daarna werklik verg om u belastingbande met Suid-Afrika te finaliseer.

Belastingemigrasie: wat dit werklik verg om van SARS te skei

By FHBC het ons al menige kliënte gehelp om die oorgang van finansiële emigrasie na belastingemigrasie te verstaan.  Talle Suid-Afrikaners wat oorsee woon, dink hulle het klaar met SARS afgereken — maar in baie gevalle is dit nie die werklikheid nie.

Van finansiële na belastingemigrasie: ’n stelselverandering 

In ons April 2021-artikel het ons verduidelik hoe die ou proses van finansiële emigrasie via die Suid-Afrikaanse Reserwebank (SARB) op 28 Februarie 2021 beeïndig is.  Dié proses het vroeër gedien as ’n formele verklaring van emigrasie, wat dikwels as bewys van belasting status gebruik is.

Na die verandering het SARS die volle beheer oorgeneem en die fokus verskuif na ’n streng belastinginwonerskapstoets.  Soos ons in Desember 2022 geskryf het, is belastingemigrasie nou ‘n proses wat u self aktief moet bestuur — dit gebeur nie outomaties wanneer u landuit trek nie.

Belastingstatus verander nie vanself nie

’n Onlangse artikel van Accounting Weekly beklemtoon ‘n algemene wanopvatting: dat u nie meer belastingpligtig is nie, bloot omdat u in die buiteland woon.  Die werklikheid is anders.  Tensy u amptelik aan SARS verklaar het dat u nie meer ’n belastinginwoner is nie, bly u onderhewig aan belasting op wêreldwye inkomste.  Dit beteken SARS kan u steeds belas, selfs al verdien u u inkomste uitsluitlik buite Suid-Afrika.

Wat SARS van u verwag 

Om nie meer as ‘n belastinginwoner van SA beskou te word nie, moet u bewys dat:

  • U is nie meer as gewone inwoner in SA gevestig nie
  • U voldoen nie aan die fisiese teenwoordigheidstoets nie (bv. meer as 183 dae in SA gedurende ‘n 12-maande tydperk)
  • U familie, werk en woning is na ’n ander land verskuif

Hierdie proses vereis dat u ‘n RAV01-vorm via eFiling indien, saam met ondersteunende dokumentasie (soos visums, huurooreenkomste, werkpermitte, ens.).  Sonder hierdie proses kan SARS aanneem dat u nogsteeds ‘n inwoner is.

Uittreebelasting: Die finansiële impak

Wanneer u suksesvol u belastinginwonerskap beeïndig, word u geag om al u wêreldwye bates te verkoop op die dag voordat u die status verander.  Hierdie “veronderstelde vervreemding” lei tot kapitaalwinsbelasting (KWB) — ook bekend as “uittreebelasting”. 

Die impak hiervan kan aansienlik wees, veral as u bates soos eiendom, aandele of beleggings besit.  Dit is dus belangrik om vooraf hierdie potensiële kostes te bereken en behoorlik te beplan.

Pensioenfondse: Die drie-jaar reël

Een van die grootste veranderinge na die 2021-hervorming is dat u aftreefondse nou vir drie jaar gevries is as u nie voor Maart 2021 formeel geëmigreer het nie. 

Soos verduidelik in ons 2022-artikel, kan u eers na drie opeenvolgende jare as nie-inwoner toegang kry tot u aftreefondse.  Dit is nog ’n rede waarom dit noodsaaklik is om u belastingstatus so gou moontlik by SARS te formaliseer.

Praktiese volgende stappe vir Suid-Afrikaners oorsee

As u reeds in die buiteland woon, of binnekort beplan om te emigreer, beveel FHBC die volgende aan: 

  1. Kontroleer u belastingstatus – Teken in by u eFiling profiel en bevestig of u nog as ‘n inwoner geklassifiseer word
  2. Dien die RAV01-vorm in – Dit is die amptelike kennisgewing aan SARS dat u u status verander het
  3. Berei dokumentasie voor – Insamel van bewys van buitelandse verblyf, werk, visums, ens.
  4. Bereken u uittreebelasting vooraf – Kry hulp van ’n belastingdeskundige om verrassings te voorkom
  5. Begin die drie-jaar klok – Die aftelling vir toegang tot u aftreefonds begin eers wanneer SARS u nie-inwonerskap erken het 

Belastingemigrasie gaan nie net oor grense oorsteek nie — dit gaan oor behoorlike dokumentasie, nakoming van SARS se vereistes, en strategiese beplanning.  U kan al vir jare oorsee wees, maar sonder ’n formele verklaring, beskou SARS u steeds as een van hulle eie.

By FHBC help ons u graag deur elke stap van die proses — van statusbepaling tot SARS-voorleggings en strategiese belastingbeplanning.

Wil u seker maak u het belastingemigrasie korrek hanteer?

As u tans ‘n kliënt van die FHBC Groep van maatskappye is, kontak asseblief die direkteur wat u betrokkenheid hanteer.  U is ook welkom om ons belastingafdeling te kontak (abritz@fhbc.co.za)

Source Reference:

  1. FHBC. “Missed the Deadline for Financial Emigration – What Now?” (April 2021)
  2. FHBC. “Tax Emigration: Understanding When and How” (December 2022)
  3. Accounting Weekly. “Immigration and Taxes: When Can You Divorce SARS?” (2024)
  4. SARS. “Guide to Tax Resident Status”
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