When you cease to be a South African tax resident, you must inform SARS by updating your status through submission of a RAV01 form on eFiling. The exact date (YYYMMDD) you cease to be a tax resident is important to determine your tax liabilities and it must also be indicated to SARS as part of the disclosure.
You will also need to submit the following documentation on eFiling:
- The cease-to-be resident Declaration Form;
- Supporting documentation which evidences that you ceased to be a South African tax resident, which includes practical documents such as a copy of your passport, visa, permanent residency permit to reside in the foreign country and a travel diary since the date you ceased to be a South African tax resident; and
- A motivational letter.
The purpose of the declaration is to inform SARS of your change in tax residency status that will impact the basis on which you will be subject to tax in SA and how your returns will be assessed in the future. When you cease to be a tax resident, you are also deemed to dispose of your worldwide assets (subject to specific exclusions) at market value the day before you cease to be a South African tax resident.
Once SARS has considered the information, they will issue you a non-residency confirmation letter.