Leaving South Africa Myths

Here’s What People Get Wrong About Tax Residency

So, you’ve moved abroad (or are planning to), and you’re wondering, “Do I still need to deal with SARS?” The short answer? Maybe. But the real answer depends on a few things — and there are a lot of myths floating around about what happens when you stop being a South African tax resident.

Here’s a breakdown of the most common misconceptions — and what you really need to know.

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Myth #1: “I’ve left South Africa, so I’m no longer a tax resident.”

Not quite.
Leaving the country doesn’t automatically end your tax residency. As of recent changes, you must formally apply to SARS to cease tax residency by:

• Submitting the Declaration of Cease to be a Tax Resident on SARS eFiling,
• Uploading supporting documents (e.g., foreign tax residency certificate, passport, visa), and
• Waiting for SARS to review and issue a Notice of Non-Tax Residency if approved.

You are still a tax resident — and taxed on your worldwide income — until SARS confirms the change. it. Until they do, you’re still seen as a tax resident and taxed on your worldwide income.

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Myth #2: “Once I’m not a resident, I never have to file anything again.”

That would be nice… but nope.
Even as a non-resident, you might still need to:

• Submit a return if you’re earning money from South Africa (like rent, pension, or interest).
• Pay tax on certain income types (some of it gets withheld at source).
• File your last tax return that shows when you became a non-resident.

If SARS asks for a return — you’ve got to file.

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Myth #3: “My South African bank interest is too small to worry about.”

Maybe — but maybe not.
As a non-resident:

• You can earn up to R23,800 in SA interest per year tax-free.
• Anything above that is taxed at 15% — usually withheld by the bank.

Still, it’s up to you to check that it’s been handled correctly.

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Myth #4: “There’s no tax when I leave SA.”

This is the big one.
When you stop being a tax resident, SARS treats it like you’ve sold all your worldwide assets, even if you haven’t. This triggers exit tax (capital gains tax), which can catch people off guard.

If you own:

• Shares,
• Offshore property,
• Crypto,
• Investments…

…you may need to declare a gain — and pay tax on it — when you emigrate.

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Myth #5: “SARS will automatically deregister me.”

Wishful thinking.
SARS doesn’t just wipe your tax number off the system. You need to:

• Make sure all your returns are filed.
• Confirm there’s no more South African income.
• Then formally ask SARS to deregister you — either via eFiling or through a tax advisor.

Until then, you’re still in their system.

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Myth #6: “If I stop filing, SARS will forget about me.”

They won’t.
Even if you’ve moved to Timbuktu, SARS can:

• Raise automatic (and sometimes incorrect) tax assessments,
• Charge penalties for missed returns,
• And even block you from getting money out of SA.

So yeah, best not to ghost them.

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Quick Recap: What You Actually Need to Do

• Tell SARS when you stop being a tax resident.
• File your last return properly (including any exit tax).
• Stay registered if you’re still earning SA income.
• Deregister once you’re 100% done with SA tax stuff.
• Ask a tax pro if you’re unsure — seriously, it’s worth it.

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Moving countries is stressful enough. Don’t let a SARS surprise hit you months (or years) down the line. If you need help checking your tax status or cleaning things up, reach out — better safe than sorry.