Deemed disposal
Also known as: deemed disposition
A disposal treated as occurring for tax even without a sale — for example on emigration, death, or ceasing to be a tax resident.
Definition
A deemed disposal is where the law treats you as having disposed of an asset at market value even though no actual sale took place. In South Africa, ceasing to be a tax resident triggers a deemed disposal of worldwide assets (excluding SA immovable property), commonly called the "exit charge", which can crystallise CGT on crypto. Death also triggers a deemed disposal.
Example
You hold crypto and formally cease South African tax residency. SARS deems you to have disposed of it at market value on that date, potentially triggering CGT.
Jurisdiction notes
- South Africa: Ceasing SA tax residency triggers a deemed disposal (exit charge) of worldwide assets, excluding SA immovable property.