)
EMIGRATING? THE SECTION 9H EXIT TAX: WHAT EVERY SOUTH AFRICAN NEEDS TO KNOW BEFORE CEASING TAX RESIDENCY
When a taxpayer relocates abroad or emigrates, then from a tax perspective, it is referred to as ceasing to be a South African tax resident (not to be confused with citizenship). Ceasing to be a South African tax resident may, however, come with a tax cost. One of the most consequential and frequently misunderstood provisions facing South Africans who relocate abroad is the deemed disposal triggered by section 9H of the Income Tax Act. When you cease your South African tax residency, section 9H applies, and the tax consequences can be significant if you are not properly prepared.
