Tax Emigration = Breaking Tax Residency
South Africa Taxes are Based on Residency, Not Citizenship
Just because you’re a South African citizen doesn’t mean you’ll always be taxed by SARS. What matters is whether you’re considered a resident for tax purposes.
There Are Two Main Tests SARS Uses:
1. The Ordinary Residence Test
If South Africa is your usual or permanent home, and you intend to return there regularly or eventually—then you’re ordinarily resident, and SARS sees you as a tax resident.
Factors include:
- Where your family and assets are
- Your long-term intentions
- Where you work and live most of the time
If you’re permanently relocating to Dubai and severing ties with South Africa (selling property, moving family, etc.), you may no longer meet this test.
2. The Physical Presence Test
Even if you’re not “ordinarily resident,” you might still be considered a tax resident if you’re physically present in South Africa for:
- More than 91 days in the current tax year, and
- More than 91 days in each of the previous 5 years, and
- More than 915 days total over those 5 years
Once you leave SA and no longer meet these thresholds, you can fall outside of the “physical presence” test too.
Breaking Tax Residency
To stop being taxed as a South African resident, you need to officially declare tax emigration with SARS.
This involves:
- Submitting a declaration that you’ve ceased tax residency
- Providing evidence (e.g., visas, contracts, exit documents)
- Possibly paying exit tax on worldwide assets at the time you leave
Once approved, you’ll be classified as a non-resident, and SARS will only tax you on SA-sourced income (like rental income from a property still in SA).