Financial Emigration (Non-Tax Resident)

As of 1 March 2021, the South African Reserve Bank (SARB), through its Financial Surveillance Department, formally phased out the concept of “emigration” (for exchange-control purposes).
In short, the old procedure known as “Financial Emigration” no longer exists in its previous form. Instead, the process for South Africans abroad centres on becoming a “non-tax resident” as recognised by the South African Revenue Service (SARS)

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Financial Emigration → Non-Tax Residence: What Changed in 2021

What used to happen before 1 March 2021

Section B.2(J): Private individuals ceasing to be South African tax residents.
The previous process of formerly emigrating involved two scenarios:

An individual went through a formal emigration process, applying to SARB to emigrate through their bank by completing an MP336(b) form.
The emigration process would then involve tidying up their tax affairs with SARS. Once in order, SARS would provide a tax directive to the individual.
The final step would be SARB approving the emigration and placing it on record that the individual is a non-resident of SA.
If a South African resident has been out of the country for more than 5 years, is a resident of another country, with no assets left in SA, they could complete an MP336(b) form, and a bank could log this with SARB to declare that person a non-resident of SA.
This process of emigration has been phased out. An individual wanting to “emigrate” will only deal with SARS.
They will apply to SARS for a Tax Clearance Certificate to remit money offshore from the sale of their assets, and then apply to become non-resident for tax purposes. This does not make them a non-resident of SA.
If that individual decides to travel back to SA and spends extended periods in SA, then the SARS physical presence test will apply, and they could then qualify to be taxed in SA again in the future.

The new terminology is a non-tax resident. It is essential to note that this amendment only applies to South African residents and South African emigrants living abroad who have not formally emigrated before March 1, 2021.

What happens after 1 March 2021

SARB abolished the concept of “emigrant” / “financial emigration” for exchange-control purposes.
That means no more mandatory MP336(b) applications, no more blocked rand accounts, and no separate SARB approval for emigration
Instead, the process now focuses on tax residency. If you cease to be a South African tax resident (according to SARS criteria), you become a “non-resident for tax purposes.”

To declare this, you must inform SARS (e.g. via the RAV01 form), providing proof (residency abroad, travel history, intention, etc).

A South African living in SA and a South African living abroad who has packed up and left the country are now viewed as one and the same.
Therefore, the R1 million SDA and the R10 million FIA apply to both.

SDA – Single Discretionary Allowance

This is the amount a South African resident (yes, even if you now live abroad, SARS still puts you in the same “residency” bucket for exchange control purposes unless you’ve formally changed status) can take out of SA without needing a Tax Compliance Status (TCS) pin.

Limit: Up to R1 million per calendar year.
No questions asked: You don’t need to provide supporting documents.
Used for: Travel, gifts, sending money overseas, etc.

FIA – Foreign Investment Allowance

This one is the bigger, more serious cousin.

Limit: Up to R10 million per calendar year.
Requirements: You do need a TCS Pin for “Foreign Investment” from SARS.
Used for: Moving larger sums offshore, investing abroad, emigrating financially (now called ceasing tax residency).

The implications of this change:

The regulatory shift doesn’t stop South Africans from “emigrating” financially — it simply changes how the journey unfolds. By removing the old SARB and bank-driven emigration process, the new system is often simpler, faster, and far less expensive

Your residency status — and your tax obligations — now rise and fall according to SARS’ rules and your real-world footprint: how long you spend in South Africa, where your true home is, and the nature of your financial ties.
Simply leaving the country (or having a foreign residence) does not automatically end your SA tax residency

The issue regarding the change arises primarily for those who left South Africa and:

Did not formally emigrate before 1st March 2021, and
Have misplaced their SA Green Barcoded ID BookCard, or
Do not have their SARS income tax number

For many South Africans abroad — especially those handling inheritances, trust payouts, or old investments — getting money out of the country is becoming more complicated, not less. The process is now firmly in SARS’s hands, and missing documents can bring everything to a grinding halt.
You may only access your retirement lump sum once you have been a confirmed non-tax resident for three consecutive years.

Possible Roadblocks to Moving Money Out of South Africa

➡️ No ID Book/Card → No Remittances
Without your ID Book/Card, authorised dealers simply won’t process outward transfers. It’s the key to the whole gate.

➡️ ID Book/Card Only → R1 Million Limit
With your ID book/card in hand, you may still use the Single Discretionary Allowance (SDA) to transfer up to R1 million per calendar year, no tax clearance needed.

➡️ ID Book/Card + SARS Tax Number → Larger Transfers Possible
If you have both an ID book/card and an active SARS tax number, you can apply for the necessary Tax Compliance Status (TCS/AIT PIN) and move more than R1 million out of the country.

Practical Realities for South Africans Abroad

As things stand today, the rules fall rather firmly:

If you left South Africa years ago but never completed the old “financial emigration” process — and you’ve since lost your green barcoded ID book/card — you’ll need to apply for a new ID card before any authorised dealer will release inheritance money or other inward flows.
No ID means no movement.

If you do still have your ID book/card, but cannot remember your SARS tax number — or your tax number has gone dormant after years abroad — you’ll need to reactivate it through eFiling or through a tax practitioner.
Without an active SARS tax number, you’re capped at the R1 million SDA. Anything beyond that requires a valid tax number and a TCS/AIT PIN.

SARS has introduced the Tax Compliance Status Request (TCR01) process, which allows South Africans abroad to formally confirm that they are non-residents for tax purposes.
This is expected to become the main route for aligning your tax status with your real-life residency.
This process is still relatively new, and nobody yet knows how SARS will handle cases where a person has no ID book/card or no active tax number. The system hasn’t been fully tested in those tricky situations, and the guidance so far is light on detail.

The Two Tests for Tax Residency

The South African Revenue Service (SARS) uses two alternative tests to decide whether someone is a tax resident in South Africa — the so-called “ordinarily resident” test and the “physical presence” test.
The latest updates and information can be found on the SARS Website

Acronyms

Acronym	Meaning	What It Refers To
SDA	Single Discretionary Allowance	Allows SA residents to transfer up to R1 million abroad per calendar year without tax clearance.
FIA	Foreign Investment Allowance	Allows up to R10 million abroad per year, requires a Tax Compliance Status (TCS/AIT PIN).
TCS	Tax Compliance Status	SARS verification needed for large transfers; includes "Approval for International Transfer" (AIT) PIN.
AIT	Approval for International Transfer	The specific TCS PIN SARS issues to approve foreign transfers over R1 million.
SARS	South African Revenue Service	Tax authority that determines tax residency and approves international transfers.
SARB	South African Reserve Bank	Previously handled "financial emigration"; now oversees exchange control, but no longer approves emigration.
FSD	Financial Surveillance Department	The division of SARB responsible for exchange control regulations.
MP336(b)	Emigration Application Form	Old SARB form used for financial emigration; phased out in 2021.
TCR01	Tax Residency Confirmation	The SARS process for confirming non-tax residency (used after March 2021).
RAV01	Registration Amendments and Verification Form	Form used on SARS eFiling to update personal details and declare cessation of tax residency.
DTI	Double Taxation Agreement	Treaty between SA and another country to prevent double taxation.

Info on the web

SARS – Cease to be a resident
South African Reserve Bank – Exchange Control Circular no 6/2021

News articles worth reading

Businesstech – here are the new rules
Moneyweb – Saffers abroad need to confirm their non-resident tax status with SARS.

South Africans in Germany