Guide to Determining Tax Residency in South Africa

Introduction

Determining your tax residency status is a critical first step in understanding your obligations to the South African Revenue Service (SARS). Whether you’re a South African living abroad, a foreigner working in SA, or someone with cross-border ties, your residency status dictates whether you’re taxed on worldwide income or only on income sourced within South Africa.

SARS applies two key residency tests:

1. Ordinary Residence Test – based on where your permanent home and lifestyle are centred.
2. Physical Presence Test – based on the number of days you spend in South Africa over a rolling period.

Additionally, Double Tax Agreements (DTAs) may affect your status if you’re also a resident of another country. Use the checklist below to assess your status and seek professional advice where necessary.

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TAX RESIDENCY CHECKLIST

Section A: Ordinary Residence Test

Tick all that apply:

• I consider South Africa to be my permanent home.
• I reside in South Africa with the intention of staying indefinitely.
• I return to South Africa regularly, even if I currently live or work abroad.
• My family (spouse, children, etc.) lives in South Africa.
• I own or rent property in South Africa that I use as a home.
• I have South African bank accounts or financial assets.
• I belong to clubs, religious groups, or associations based in South Africa.
• My social and economic interests are mainly in South Africa.
• I maintain a driver’s license or vehicle registered in South Africa.
• I use South African medical services, insurance, or pension schemes.
• I vote or am registered to vote in South African elections.
• I receive income from South African sources (employment, rental, etc.).
• I file South African tax returns voluntarily or by requirement.

If several of the above apply, you are likely considered ordinarily resident—and therefore a South African tax resident.

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Section B: Physical Presence Test

Tick if applicable:

In the current tax year (1 March – end February):

• I was physically present in South Africa for more than 91 days.

In each of the five preceding tax years:

• I was in South Africa for more than 91 days in each year.

Over the entire 5-year period:

• I spent more than 915 days in South Africa in total.

Cessation clause:

• I have not been outside of South Africa for 330 or more consecutive days.

If all boxes above are ticked, you meet the physical presence test and are considered a tax resident—unless a DTA overrides this status.
If you have been absent for 330+ consecutive days, you cease to be a resident from the day after departure.

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Section C: Double Tax Agreement (DTA) Consideration

Tick if relevant:

• I am also a resident of another country.
• That country has a Double Tax Agreement (DTA) with South Africa.
• My permanent home is in the other country, not in SA.
• My centre of vital interests (economic and personal ties) is in the other country.
• I spend more time annually in the other country than in South Africa.
• I am registered with the tax authority of the other country.
• I have obtained a residency certificate from the other country.

If most of these apply, you may be deemed non-resident for SA tax purposes under a DTA—even if you meet one of the other tests.

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Final Determination Summary

You are likely a South African tax resident if:

• You meet the Ordinary Residence Test, or
• You meet the Physical Presence Test (and haven’t broken it by a 330-day absence),
• And you are not protected by a DTA with another country.

If you are unsure or have complex ties to multiple countries, it is strongly advised to consult with a tax practitioner to assess your residency and file correctly with SARS.