Za Tax Residency

---
name: za-tax-residency
description: "South Africa tax residency: ordinarily resident test, physical presence test, cessation of residency, exit charge on deemed disposal. Trigger on: \"South Africa tax resident\", \"SARS residency\", \"leaving South Africa taxes\", \"ordinarily resident South Africa\", \"physical presence test South Africa\", \"SA exit tax\", \"cease to be SA resident\", \"South African tax emigration\", \"financial emigration SARS\"."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/za-tax-residency"
  jurisdiction: "ZA"
  tax_year: "2025"
  last_updated: "2026-07-13"
  reviewed_by: "Werner Britz"
---

# ZA Tax Residency

## Quick reference

**Quick reference**

| Item | Value |
| --- | --- |
| Tests | Ordinarily resident OR physical presence test — meet EITHER → resident |
| Exit charge | Deemed disposal of worldwide assets at market value on departure |
| Legislation | Income Tax Act 58 of 1962, §1 (definition of "resident") |
| Tax authority | SARS (sars.gov.za) |

## Test 1: Ordinarily Resident

- **Ordinarily resident** — A person is "ordinarily resident" in South Africa if South Africa is their real home — the country to which they would naturally return after their wanderings. This is assessed on: Location of permanent home; Family ties; Centre of personal and economic interests; Intention regarding the country. A person can be "ordinarily resident" in only one country at a time.  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_

## Test 2: Physical Presence Test

- **Physical presence test conditions** — Even if NOT ordinarily resident, a person is a SA tax resident if they are physically present in SA for: 91 days or more in the current year, AND 91 days or more in each of the preceding 5 years, AND 915 days or more in total over the preceding 5 years (183 days/year average). All three conditions must be met simultaneously.  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_
- **Current year physical presence** — 91 days  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_
- **Each of preceding 5 years physical presence** — 91 days  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_
- **Total physical presence over preceding 5 years** — 915 days  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_

## Ceasing South African tax residency

- **Ordinarily resident individuals cessation** — Cease to be SA tax resident when they become ordinarily resident in another country (i.e. establish their "real home" elsewhere).  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_
- **Physical presence individuals cessation** — Cease to be SA tax resident when they are absent from SA for a continuous period of at least 330 days after the day they ceased to meet the physical presence test.  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_
- **Continuous absence period after ceasing physical presence test** — 330 days  _(Income Tax Act 58 of 1962, §1 (definition of "resident"))_

## Exit charge: deemed disposal on departure

- **Deemed disposal on cessation of residency** — When a person ceases to be a SA tax resident, they are treated as having disposed of all their worldwide assets (other than SA real property and SA PE assets) at fair market value on the date of cessation. This triggers CGT on all unrealised capital gains in foreign and South African assets at the date of departure.  _(Income Tax Act 58 of 1962, §9H (exit charge))_
- **Exception for SA immovable property and PE assets** — SA immovable property and assets of a SA permanent establishment are not subject to the deemed disposal — SA retains taxing rights on those when actually sold.  _(Income Tax Act 58 of 1962, §9H (exit charge))_

## Tax emigration process (post-2021)

Since 1 March 2021, the SARB "financial emigration" process through the banking system was abolished. Tax emigration is now a tax process only:

1. Cease being ordinarily resident in SA (establish home abroad)
2. Inform SARS via your tax return — declare the date of cessation
3. Pay the exit CGT on the deemed disposal
4. Obtain a SARS compliance certificate

## Sources

- Income Tax Act 58 of 1962, §1 (definition of "resident"), §9H (exit charge)
- SARS: sars.gov.za/types-of-tax/income-tax/foreign-income/

> Working paper only. The ordinarily resident test is highly fact-specific. The exit CGT can be significant for individuals with large unrealised gains in foreign portfolios. Have a qualified South African CA(SA) or tax practitioner review.

## Rates and thresholds

> Reviewed against the cited tax authorities by Werner Britz on 2026-06-12.
> Items flagged for further clarification are tracked separately and excluded here.
> This block is generated from verified `skill_facts` — edit the facts, not the prose.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `za-tax-residency` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/za-tax-residency. If neither is available, confirm every figure against the official source pages cited above before relying on it.