Many South Africans move abroad assuming that once they’ve left, their tax obligations back home disappear. Unfortunately, it’s not that simple.

Until you formally update your tax status with SARS, you remain a South African tax resident — which means you’re still liable for tax on your worldwide income.

The foreign income exemption

There is some relief available. If you are a tax resident working abroad, you may qualify for the foreign income exemption:

• The first R1.25 million of foreign employment income can be exempt from South African tax.
• To qualify, you must meet SARS’s requirements, including:
  
  • Spending 183 days outside South Africa in any 12-month period.
  • Spending at least 60 consecutive days abroad within the same period.

This exemption is helpful, but it doesn’t eliminate your obligations entirely. And once your earnings exceed R1.25 million, SARS still wants its share.

Ceasing your tax residency

For those who have relocated permanently, the better long-term solution is to cease tax residency in South Africa. SARS will conduct a factual inquiry to confirm that your departure is genuine — not just a short-term move to avoid tax.

They’ll look at whether South Africa is still your “true home,” based on where your family, property, and long-term commitments are. Once approved, you’ll no longer pay tax on worldwide income — only on income sourced in South Africa.

Why this matters for business professionals

If you’re working abroad on assignment, building an international career, or managing business interests across borders, getting your residency status wrong can be costly. Double taxation, unnecessary filings, and compliance risks all add up.

That’s why having the right partner matters.

How Currency Assist helps

At Currency Assist, we simplify the process by:

• Reviewing your tax residency position.
• Guiding you through the requirements for ceasing residency.
• Handling the SARS application process alongside your forex needs.
• Ensuring your international earnings are structured compliantly.

Your next step

If you live and work overseas but haven’t updated your tax status, you could still be paying tax on your worldwide income unnecessarily.

Contact Currency Assist today to review your residency status and take control of your tax obligations.