Documents needed to Cease Tax Residency

Ceasing tax residency means that you will no longer be considered a tax resident of South Africa. As a result, you will only be taxed in South Africa on income earned from South African sources, rather than your worldwide income. In order to cease tax residency SARS requires you to submit certain documentation to support your ceasing of tax residency.

Required Documents for SARS Application 

Proof of Foreign Tax Residency 

• A tax residency certificate from your new country of residence (if available). 
• Alternatively, an official document confirming tax residency abroad, such as a letter from a foreign tax authority or a residence permit. 

Foreign Employment or Income Proof 

• A copy of your foreign employment contract, if applicable. 
• Recent payslips or proof of earnings from employment or self-employment. 

Proof of Address in Foreign Country 

• A utility bill, rental agreement, or bank statement reflecting your foreign address. 
• This document cannot be older than three months at the time of submission to SARS. 

Emigration or Relocation Documents 

• Proof of permanent residence, work visa, or residency permit in the new country. 
• If you have sold or rented out your South African property, provide the sale agreement or lease agreement. 

Date of Ceasing Tax Residency & Supporting Evidence 

• The exact date you ceased to be a South African tax resident, which will be based on when you no longer met the tax residency requirements. 
• Supporting documents to verify this date, such as:  
• The date of departure from South Africa (boarding passes, exit stamps, travel itinerary). 
• The date you became a tax resident in another country (foreign residency certificate, employment start date). 
• Proof of physical absence from South Africa (foreign lease agreement, employment contract, or tax documents). 

Statement of Assets and Liabilities (At the date of ceasing tax residency)
SARS requires a detailed breakdown of your assets and liabilities as part of the application. For each asset, I will need: 

• Cost Price – The original purchase/acquisition cost of the asset. 
• Market Value – The fair market value of the asset on the day before you ceased tax residency in South Africa. 

This is necessary because SARS treats the cessation of tax residency as a “deemed disposal” of worldwide assets, which may trigger Capital Gains Tax (CGT) in South Africa. This means that even though you are not selling your assets, SARS considers them as disposed of at market value for tax purposes. 

Interests & Property Remaining in South Africa 

• If you still have any financial interests in South Africa, such as shares in companies, business interests, or trusts, please provide details. 
• If you own property in South Africa but are renting it out or keeping it as a second home, please provide details of the ownership and rental agreements. 
• If you have active bank accounts, loans, or credit cards in South Africa, please provide recent statements. 

Social and Community Ties in the UK 

• SARS may consider evidence of your integration into a new country as part of your non-residency status. Please provide proof of any:  
• Social clubs, organisations, or community groups you have joined. 
• Schools your children are attending, including enrolment letters or tuition receipts. 
• Gym memberships, sports clubs, or other affiliations that support your relocation. 

South African Bank Statements (if applicable)

• Recent bank statements may be required to verify financial transactions and support your application. 
• While SARS has not specified an exact period, we typically recommend submitting statements covering at least six months prior to your departure. 

Foreign Bank Statements 

• If you have a foreign bank account, a recent statement reflecting transactions may be useful in supporting your change of tax residency. 

Motivational Letter 

• A signed letter explaining the reasons for ceasing South African tax residency. 
• This should include details of your relocation, foreign employment, and confirmation that you have no intention of returning as a South African tax resident. 

Last Tax Return Submitted to SARS 

• A copy of your most recent tax return for reference.