Ceasing tax residency
Moving abroad, or already living overseas? What many still call financial emigration now turns on your tax residency. We establish whether and when you stopped being a South African tax resident, work out the tax cost and handle the declaration to SARS.
From R8 500 full cessation, after a free screening and a R3 000 review
Three steps, each priced upfront.
Free screening Free
Answer 12 short questions online. It takes about 5 minutes and no documents are needed. We tell you whether a proper review is needed at all.
Residency review R3 000
If there is a genuine question, you complete the full questionnaire. We test your position, compare the cost of staying resident with ceasing, and give you a written conclusion.
Cessation From R8 500
If ceasing is right for you, we calculate the exit tax, declare your change of status to SARS and prepare your split year return.
Is this right for you?
- South Africans who have emigrated or are relocating permanently
- People working abroad who are unsure whether they are still tax resident
- Anyone planning to access a retirement annuity after leaving
- People who left years ago without updating SARS
Scope, clearly defined.
Residency determination
We apply the ordinarily resident test and, where relevant, the physical presence test and any tax treaty, and record the evidence in a working paper you can rely on if SARS asks.
Cost comparison
Before you decide, we compare the annual cost of remaining resident with the once off exit charge of ceasing, so you can see which way the numbers point.
Exit tax calculation
On ceasing residency most worldwide assets are treated as sold at market value. South African property and retirement funds are excluded. We calculate the capital gains tax upfront.
Declaration to SARS
Your change in residency status declared to SARS on eFiling, with the supporting evidence SARS asks for.
Split year returns
Your ITR12 prepared for the periods before and after the date you ceased to be resident.
Returns after you leave
Ongoing returns if you still earn South African income, such as rent from property here.
Common questions
Can I choose to stop being a tax resident?
No. Residency is decided by the facts of your circumstances, not by election. The law also places the burden of proof on you, so your position needs to be supported by evidence such as your home, family, employment and days spent in South Africa.
Is this the same as financial emigration?
Formal financial emigration through the Reserve Bank was phased out in 2021. What matters now is your tax residency status with SARS, which is decided by the tax tests, not by your passport or where your bank account is.
Will I pay tax when I leave?
Possibly. When you cease to be resident, you are treated as having sold most of your worldwide assets at market value, which can trigger capital gains tax. South African property and retirement fund interests are excluded. We calculate this before anything is declared.
Should I cease residency, or stay resident and claim the foreign income exemption?
It depends on your income and assets. If your foreign remuneration is below the R1.25 million exemption cap, ceasing can trigger an exit charge for no tax saving. Our residency review compares both options.
Can I withdraw my retirement annuity?
Generally, once you have not been tax resident for 3 consecutive years. We help you confirm your status and prepare what your fund and SARS require.
Related services
Personal tax
Annual ITR12 returns, provisional tax, foreign income and SARS queries for individuals.
From R650
Tax registrations
VAT, income tax, employer (PAYE, UIF, SDL) and COIDA registrations, done right the first time.
From R2 500
Find out where you stand.
Answer 12 short questions about your time abroad. It takes about 5 minutes, no documents are needed, and the screening is free.