OpenAccountants/South Africa/ZA Tax Residency

ZA Tax Residency

Name: OpenAccountants MCP Server
Author: OpenAccountants

South Africa tax residency: ordinarily resident test, physical presence test, cessation of residency, exit charge on deemed disposal.

Applicable period 2025Accountant-authoredBuilt by Werner Britz · Credentials: licence 04884432· Last updated Jun 5, 2026

Moving countries, or living in two?

Ask OpenAccountants about tax residency, leaving-country obligations and returns in each country. Start with a free 30-minute call. We confirm availability, the accountant responsible and the price before you commit.

Book a free call

Authored by Werner BritzContribute a skill

Accountant-authored. Written and published by Werner Britz, an accountant approved on OpenAccountants. Their licence number (04884432) is published on their profile, so you can check it against the register yourself. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.

Use ZA Tax Residency in your AI agent

Add OpenAccountants so your AI can retrieve this skill during a conversation. Any output remains a draft unless a qualified professional separately reviews your specific facts.

View source on GitHub Add to your AI

Use this with your AI

Use OpenAccountants for ZA Tax Residency in South Africa.

Paste it into ChatGPT, Claude, or any AI that has OpenAccountants added. Add it to your AI first if you haven't.

Key figures — South Africa, 2025

Every figure is drawn from this skill and cited to its source.

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")

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

91Income Tax Act 58 of 1962, §1 (definition of "resident")

Each of preceding 5 years physical presence

91Income Tax Act 58 of 1962, §1 (definition of "resident")

Total physical presence over preceding 5 years

915Income Tax Act 58 of 1962, §1 (definition of "resident")

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

330Income Tax Act 58 of 1962, §1 (definition of "resident")

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)

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full skill

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:

Cease being ordinarily resident in SA (establish home abroad)
Inform SARS via your tax return — declare the date of cessation
Pay the exit CGT on the deemed disposal
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.

Verified rates & thresholds (accountant-authored, no independent check recorded)

No independent accountant check is recorded for this version. Items flagged for further clarification are tracked separately and excluded here.

Moving countries, or living in two?

Book a free call

Pasting this into your AI section by section is slow and easy to get wrong. Add to your AI and it loads the whole skill automatically — with dependency resolution and conservative defaults, every figure cited to its source.

All South Africa skills

More South Africa skills

Other South Africa computations in the OpenAccountants Skill Library.

za-capital-gains za-income-tax-tables Cancelling a VAT registration and the exit VAT charge Income tax rate tables by year of assessment, 2023 to 2027 Foreign employment income exemption, section 10(1)(o)(ii)za-assessed-loss-ring-fencing Ring-fencing of assessed losses under section 20A Travel allowance and logbook rate tables, 2023 to 2027 Capital gains tax rate tables, 2023 to 2027 south-africa-vat za-capital-gains-tables za-income-tax

See all South Africa skills →

Tell us the accounting or tax work you need in South Africa.

Book a free call

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:

Cease being ordinarily resident in SA (establish home abroad)

Inform SARS via your tax return — declare the date of cessation

Pay the exit CGT on the deemed disposal

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.