In brief (TL;DR): Financial emigration was a SARB process abolished in March 2021. Tax emigration — formally called cessation of SA tax residency — is the current SARS process that matters. If you completed the old financial emigration, you may still need to complete tax emigration separately.
"Financial emigration" and "tax emigration" get used interchangeably by SA expats, but they are not the same thing. Getting them mixed up can cause real problems, so it is worth understanding the difference before you take any steps.
Financial emigration (the old SARB process — discontinued)
Financial emigration was a process administered by the South African Reserve Bank (SARB) that let South Africans formally change their exchange control status from "resident" to "non-resident." It was shut down on 1 March 2021 when the SARB scrapped the distinction between residents and non-residents for exchange control purposes.
If you completed financial emigration before that date, your SARB non-resident status still stands. However, this does not automatically mean you have ceased your SA tax residency with SARS. The two were always separate processes administered by separate institutions.
Tax emigration (the current SARS process)
Tax emigration — more accurately called cessation of SA tax residency — is what matters today. It is the formal process of telling SARS that you are no longer a South African tax resident. The steps involved are: establishing your date of cessation, submitting a final tax return with a deemed disposal calculation under Section 9H, paying any Capital Gains Tax that arises, and obtaining clearance for any remaining capital movements offshore.
Once SARS confirms your cessation, you are no longer taxed on worldwide income — only on SA-sourced income. It also starts the three-year clock for accessing your retirement annuity.
Key differences
| Aspect | Financial Emigration (Old) | Tax Emigration (Current) |
|---|
| Administered by | SARB | SARS |
| Status | Discontinued March 2021 | Current process |
| Purpose | Changed exchange control status | Ceases SA tax residency |
| RA access | Enabled after 3 years (pre-Sept 2024) | Enables after 3 years |
| Exit tax | Not triggered by SARB process alone | Triggers deemed disposal under Section 9H |
| Can still be completed | No | Yes |
What if you completed financial emigration before 2021?
If you went through the old SARB process before March 2021, check whether you also completed the SARS side. Many expats assumed the SARB process covered everything, but it did not — SARS and SARB were always independent. If SARS still considers you a SA tax resident, you may still have worldwide income obligations and unfiled returns to deal with.
Not sure where you stand?
WBForex can review your current status across both SARB and SARS and advise on what steps you actually need to take. Contact WBForex for a free consultation.
