The South African Revenue Service (SARS) reports that over 51 500 taxpayers ceased to be tax residents between 2017 and 2024.
While tax residency differs from citizenship or permanent residence, it is one of the few official indicators showing outward migration. SA does not conduct exit surveys, relying instead on third-party data and population estimates.
United Nations figures suggest roughly 108 000 South Africans emigrated between 2020 and 2024, with just over one million living abroad. SARS’ tax residency data, however, offers a more precise picture of economically active individuals leaving and the fiscal impact of their departure.
Experts note that ceasing tax residency does not automatically remove obligations to SARS. South Africans who relocate but keep assets or earn local income may still owe tax. Declaring a change in residency requires a formal process with SARS and accurate reporting on the annual ITR12 tax return. Since 2021, taxpayers must indicate the exact date they ceased being tax residents, while changes to citizenship or emigration are handled separately by the Department of Home Affairs.
SARS analysed the financial effect by tracking a group of taxpayers who changed residency over a ten-year period starting in 2015. In that year, 46 959 taxpayers in the cohort declared a combined taxable income of R38.7 billion (about $2.1 billion), generating R12.8 billion in tax ($700 million). By 2024, the number had fallen to 37 706, with taxable income dropping to R9.9 billion ($540 million) and tax payable to R3.2 billion (roughly $175 million). The decline represents a 74.5% drop in income and 75.1% fall in tax contributions, amounting to a reduction of R9.6 billion (about $525 million).
Most of the decrease came from high earners above R500 000 ($27 300) a year, especially men aged 65 to 74. Meanwhile, a rising share of younger, lower-income taxpayers is ending residency, signalling changing demographics. The number of taxpayers earning up to R70 000 ($3 800) who left declined by 31.1% from 27 561 to 18 986, while high-income exits fell by nearly 20%.
–ChannelAfrica/SARS–
