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The short answer
There are two routes. If you were in South Africa on a work or visitor visa, you can apply once the visa has expired and you have left, with proof of exit and a certificate of residence from your new country. Otherwise, you must first cease SA tax residence and remain non-resident for an uninterrupted three years before a retirement annuity or preservation fund can pay out, according to SARS's guide updated May 2026.
Which route applies to you
SARS's Guide to Tax Directive for Cease to be Resident and Expiry of Visas (published April 2025, updated 20 May 2026) sets out both routes. Which one you use depends mostly on your immigration status in South Africa, not your nationality.
| Expiry of visa | Ceasing tax residence | |
|---|---|---|
| Who | Members in SA on a visa under paragraph (b) or (i) of the Immigration Act definition (work or visitor visas) who have stopped contributing | Members who have ceased SA tax residence |
| When | Only after the visa has expired, and after you have left SA | After an uninterrupted three years of non-residence |
| Funds | Retirement annuities and preservation funds (vested and retirement components); pension and provident funds (retirement component) | Retirement annuities and preservation funds (full vested and retirement components); from 1 September 2024, the retirement component of pension and provident funds |
| Key proof | Passport showing exit, visa copy showing expiry, certificate of residence | Certificate of residence, proof of three years away |
Permanent residents and naturalised South Africans cannot use the visa route; they are on the three-year route. A Nigerian on a critical skills or general work visa usually can use the visa route, but only once that visa has actually expired.
The visa-expiry route, step by step
- Stop contributing to the fund and let your employer process your exit.
- Make sure your latest income tax return (ITR12) has been submitted and assessed before you leave; SARS lists an unassessed return as a common reason for rejection.
- Leave South Africa and keep the passport page with the exit stamp.
- Wait until the visa's expiry date; SARS says an application before expiry cannot be processed.
- Get a certificate of residence from the tax authority where you now live. SARS says this works where a tax treaty exists; Nigeria and South Africa have one, so a Nigeria Revenue Service certificate of residence is the document to ask for.
- Send the fund your passport, visa copy (or a Home Affairs visa compliance and cancellation letter) and the certificate; the fund or insurer applies to SARS for the tax directive on Form B or C.
- The fund pays out after deducting the tax shown on the directive.
The three-year route
You must tell SARS that you have ceased to be resident; the guide says this can be done through eFiling or a booked appointment, and that the notice alone is not enough for a directive. The fund must confirm the three-year period, usually through passport stamps, a travel diary or assessments from your new country of residence. The guide's list of accepted proof of residence includes a certificate of residence dated within 12 months, or alternatives such as a tax registration letter or residence visa.
The SARB's exchange control guidelines (January 2026) match this: lump sums from pension preservation, provident preservation and retirement annuity funds may be paid to someone who has ceased residence only if they have been non-resident for at least three consecutive years. Our guide to ceasing SA tax residence when moving back to Nigeria covers the notification.
How the payout is taxed
The directive calculates the tax on the taxable portion of the lump sum. Lump sums taken before retirement use the withdrawal table in the Budget 2026 Tax Guide:
| Withdrawal lump sum (2026/27) | Tax |
|---|---|
| R1 to R27,500 | 0% |
| R27,501 to R726,000 | 18% of the amount above R27,500 |
| R726,001 to R1,089,000 | R125,730 plus 27% of the amount above R726,000 |
| Above R1,089,000 | R223,740 plus 36% of the amount above R1,089,000 |
Worked example (illustrative)
A R400,000 withdrawal with no earlier lump sums: 18% of R372,500 (R400,000 less R27,500) is R67,050, leaving R332,950 before any fund fees. Earlier lump sums are taken into account, so the directive figure is the one that counts.
Mistakes that delay payouts
- Applying before the visa's expiry date, even by a few days.
- Leaving without filing and having assessed the last ITR12.
- Sending a Nigerian address letter instead of a tax authority certificate of residence.
- Applying on the three-year route without telling SARS you ceased residence.
- Changing bank details by email without the fund's own verification; funds are a target for fraud, so use the fund's portal or form.
Keep copies of everything you send, and ask the fund for its reference number for the directive application.
Getting the money to Nigeria
For foreign nationals temporarily resident, the SARB guidelines (section 5.4) allow lump-sum commutations and pensions to be transferred abroad with documentary evidence. For those who ceased residence, the section 4 rules apply, including up to R10 million a calendar year for a tax-compliant individual. Your bank will want the tax directive and the fund's payment letter.
Where Pryme fits
A Pryme account holds naira and US dollars with local details and can be opened before you move, so the payout has somewhere to land in your name; the app shows the rate and the fee before you approve any conversion (multicurrency account, Swap). If part of the money is for family at home, see sending money.
Questions people ask
Can I cash out my retirement annuity when I leave South Africa?
If you were on a work or visitor visa, yes, once the visa has expired and you have left. Otherwise you must have been non-resident for an uninterrupted three years first.
What document do I need from Nigeria?
A certificate of residence from the Nigerian tax authority. SARS accepts it on the visa route where a tax treaty exists, which is the case for Nigeria and South Africa.
How much tax will SARS take?
It depends on the amount and your earlier lump sums. On the 2026/27 withdrawal table the first R27,500 is tax-free and the next band to R726,000 is taxed at 18%.
Why was my withdrawal application rejected?
SARS lists common reasons: missing documents, an ITR12 not submitted and assessed before departure, not telling SARS you ceased residence, an unexpired visa, or weak proof of the three years.
Sources
- SARS: Guide to Tax Directive for Cease to be Resident and Expiry of Visas (updated 20 May 2026) · accessed Oct 2026
- National Treasury and SARS: Budget 2026 Tax Guide (2026/27) · accessed Oct 2026
- SARB: Currency and Exchanges Guidelines for Individuals, v1.69 (7 Jan 2026) · accessed Oct 2026
- Ninety One: Breaking SA tax residency, navigating the two-pot maze (24 Oct 2024) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.