Determining how you cease to be a tax resident of South Africa involves a factual enquiry on whether your subjective intention is to cease to be an ordinarily resident in South Africa and no longer consider South Africa your “real home”, supported by objective factors and evidence.
The factors that the South African Revenue Service (SARS) will take into account to determine whether you have ceased to be a tax resident of South Africa are:
- The type of visa on which you have gone to the foreign country.
- Proof of permanent residence in the foreign country (if applicable).
- A certificate of tax residence from the foreign revenue authority or a letter from the authority that indicates that you are regarded as a tax resident in that country (if available).
- Details of any property you may still have available in South Africa. Indicate the purpose for which such property is being used.
- Details of any business interest (e.g. investment and employment) that you may still have in South Africa.
- Details of your family. Indicate whether any family members are in South Africa and the reasons therefor.
- Details of your social interests (e.g. gym contract, recreational clubs and societies) and location of your personal belongings.
- Details of any return visits to South Africa, their frequency and the reason for undertaking such visits.
Previously, when a taxpayer ceased to be a tax resident of South Africa, they could inform SARS by indicating that they ceased to be a tax resident of South Africa in their tax return; or by submitting a declaration to cease to be a tax resident to contactus@sars.gov.za. This process has, however, changed.
When you cease to be a tax resident of South Africa, you must declare to SARS through the Registration Amendments and Verification Form (RAV01) available on eFiling by capturing the date you cease to be a tax resident of South Africa. The RAV01 should be submitted via eFiling or SARS appointment. A case will be created whereby you need to provide SARS with a motivational letter and certain supporting documentation (including a declaration to cease to be a resident form, copies of your entire passport reflecting all stamps of entry and departure; proof of your residential address in the foreign country, and a travel calendar reflecting dates of departure and return to South Africa and purpose of travel).
Once your declaration to cease to be a tax resident is accepted by SARS, SARS will issue a letter/notification confirming that you cease to be a tax resident of South Africa from the date specified in your declaration.
Remember, SARS must be notified of any change to your status or any registered particulars within 21 business days of such change.