One of the main reasons saffas make the move: no personal income tax. But there are a few things you need to know, especially around SARS back home and the UAE's corporate tax that kicked in from 2023.
The UAE basics
- No personal income tax — Your take-home is your gross.
- Corporate tax of 9% on business profits above AED 375,000 (from June 2023). Sole proprietors and small businesses under this threshold are exempt.
- VAT is 5% on most goods and services. Register for VAT if your annual revenue exceeds AED 375,000.
- No capital gains tax in the UAE on personal investments.
Your SARS situation
Leaving SA does not automatically end your SA tax obligations. SARS may still treat you as a tax resident unless you formally cease residency.
Important: SA employment income above R1.25 million earned abroad may still be taxable in South Africa if you remain a SA tax resident. Physical departure is not enough. Your tax status only changes once you have formally notified SARS via the RAV01 process.
How to cease SA tax residency
- Notify SARS via the RAV01 form that you have changed tax residency status. Do this in the tax year you leave.
- A deemed disposal is triggered: all worldwide assets are treated as sold at market value on the date of cessation. Capital gains tax applies to unrealised gains.
- Apply for an Approval for International Transfer (AIT) from SARS to move money offshore. This was formerly called the Emigration Tax Clearance Certificate.
- Once accepted, SARS treats you as a non-resident for tax. No worldwide tax reporting required.
Retirement annuities and pension funds
- As a formal non-resident, you can access your SA retirement annuity earlier.
- Speak to a cross-border financial adviser before doing this. The tax implications are significant.
- Recommended advisers with SA-UAE experience: Sable International, FinGlobal, Rand Rescue.
Bottom line
Get a cross-border tax specialist involved before you leave, not after. The exit tax on a large investment or property portfolio can be material. SARS's global data sharing agreements mean offshore income is more visible than ever in 2026.
Information correct as of June 2026. UAE tax rates from UAE FTA (tax.gov.ae). SARS guidance from sars.gov.za. Always verify before acting.