A notice of cessation of income tax registration is the formal request that tells a revenue authority to close your tax account so you stop being expected to file returns. In South Africa, you submit it by deactivating the relevant registration on the RAV01 form through SARS eFiling. In the United States, there is no single form by that name; you file final tax returns and mail a letter asking the IRS to deactivate your Employer Identification Number. In both countries, the authority will not finalize the closure while returns are outstanding or tax debts remain unpaid, and staying registered without filing generates monthly penalties whether you know about them or not.
When You Actually Need to File This Notice
A few situations create a real obligation to close your registration rather than just letting it sit.
For companies, the triggers are ceasing all trading, entering liquidation, or being absorbed through a merger, acquisition, or consolidation that dissolves the entity.1South African Revenue Service. Closing a Business or Company Trusts being wound down and partnerships being dissolved follow the same logic, with the main trustee or a partnership representative submitting the request.2South African Revenue Service. SARS and CIPC Deregistration Process – SMME Business Deregistration Explained
For individuals in South Africa, there are two main triggers. The first is emigration: if you leave permanently and cease to be a tax resident, you must tell SARS so you are no longer expected to declare worldwide income.3South African Revenue Service. Cease to Be an SA Tax Resident and Reinstatement of SA Tax Resident The second is dropping below the tax threshold. For the 2026/27 tax year, individuals under 65 with total taxable income below R99,000, those aged 65 to 74 below R153,250, and those 75 or older below R171,300 generally have no filing obligation.4National Treasury South Africa. Budget 2026 Tax Guide Deregistering while your income sits below those figures stops SARS from expecting returns you do not need to file.
What You Have to Clear First
Neither SARS nor the IRS will process a closure while your account has loose ends. Two things must be resolved before the request goes through: every outstanding return has to be submitted and finalized, and every outstanding tax liability has to be settled.2South African Revenue Service. SARS and CIPC Deregistration Process – SMME Business Deregistration Explained
This is where most deregistration attempts stall. If you stopped trading two years ago and never filed the returns for the periods in between, SARS will keep the deregistration open until those returns arrive and any resulting tax debt is paid. The IRS applies the same rule to EIN deactivation requests: outstanding returns or unpaid balances block the request from being processed.5Internal Revenue Service. If You No Longer Need Your EIN
For South African companies, there is also a parallel closure with the Companies and Intellectual Property Commission. Once CIPC confirms the company is deregistered on its side, the registered representative should still make sure the business is deregistered with SARS for all applicable tax types; the two are not automatic.1South African Revenue Service. Closing a Business or Company
How to Submit the Notice on SARS eFiling
The correct form for every registration change at SARS is the RAV01, the Registration, Amendments and Verification form. It is not the REV16, which is a refund claim form and has nothing to do with registration. The RAV01 lives on eFiling under the “SARS Registered Details” menu, and it lets you view, edit, and deactivate any of your tax registrations.6South African Revenue Service. How to Complete the Registration Amendments and Verification Form RAV01 – External Guide
The exact steps depend on what you are closing.
For income tax itself, open the income tax registrations table on the RAV01 and click the deactivate button on the applicable line. After you click “Done,” the status changes from “Active” to “Cancellation Requested.”6South African Revenue Service. How to Complete the Registration Amendments and Verification Form RAV01 – External Guide
For payroll taxes (PAYE, SDL, UIF), go to “Registration Maintenance,” select the tax type you want to close, enter an effective date that is not later than the current date, and pick a reason from the dropdown, such as the employer ceased trading or the employer is insolvent.6South African Revenue Service. How to Complete the Registration Amendments and Verification Form RAV01 – External Guide
For a change of residency status, go to the taxpayer subcategory, select “Code 4, Non-resident,” enter the date you ceased to be a resident, complete the taxpayer classification, and submit. SARS will then create a case asking for supporting documents.6South African Revenue Service. How to Complete the Registration Amendments and Verification Form RAV01 – External Guide
Keep your income tax reference number close; it is the primary identifier SARS uses for everything. The cessation date matters because it fixes the final period for which a return is due, and every detail you enter should match what SARS already holds. Mismatches with historical records are one of the most common reasons submissions sit unresolved.
Ceasing South African Tax Residency Is More Than a Deregistration
If your reason for closing the account is emigration, be aware that the residency change carries tax consequences beyond simply turning off future filing obligations. Ceasing to be a South African tax resident can trigger a deemed disposal of your worldwide assets on the date of cessation, so the same click on the RAV01 has substantive tax effects.3South African Revenue Service. Cease to Be an SA Tax Resident and Reinstatement of SA Tax Resident
Since 2022, the only way to report cessation of residency is through the RAV01. The earlier option of reporting it on the ITR12 income tax return has been removed. You capture the date you ceased to be a resident under the “Income Tax Liability Details” section of the form, and SARS will typically ask for supporting documentation afterwards, so have proof of your new country of residence ready.3South African Revenue Service. Cease to Be an SA Tax Resident and Reinstatement of SA Tax Resident
Closing a Business Tax Account With the IRS
The United States has no single “notice of cessation” form, but the outcome is the same closure. You file final returns and then deactivate your EIN by letter.
File Final Returns First
Every business files a final income tax return for its last year of operations. Partnerships file a final Form 1065, checking the “final return” box near the top of the first page and marking each partner’s Schedule K-1 as final. Corporations file a final Form 1120, or 1120-S for S corporations, with the same box checked. Sole proprietors file their usual Schedule C with their personal Form 1040 for the final year.7Internal Revenue Service. Closing a Business
Corporations that adopt a resolution or plan to dissolve also have to file Form 966 within 30 days of that resolution.8Internal Revenue Service. About Form 966, Corporate Dissolution or Liquidation That 30-day window is easy to miss when owners are focused on winding down operations.
Send the Letter to Deactivate the EIN
The IRS cannot cancel an EIN, but it can deactivate it. Send a letter that includes the entity’s legal name, EIN, address, reason for deactivating, and the EIN assignment notice if you still have it. Mail it to either the Kansas City or Ogden IRS office. As noted above, the request will not be processed while you have outstanding returns or unpaid balances, so clear those before the letter goes out.5Internal Revenue Service. If You No Longer Need Your EIN
What It Costs to Skip This Step
This is the part that catches people off guard. If you stay on the SARS register but stop filing, SARS does not quietly assume you have no income. It assumes you owe a return and starts levying administrative non-compliance penalties. Those penalties run from R250 to R16,000 per month depending on your assessed taxable income, and they recur every month you remain non-compliant for up to 35 months.9South African Revenue Service. Admin Penalty Each recurring penalty carries its own transaction number, so disputing them means addressing every one individually.
Interest accrues on any resulting balance. Even where SARS is not actively pursuing collection, the interest keeps running. Filing the deregistration proactively once you no longer have taxable income is what stops the meter.2South African Revenue Service. SARS and CIPC Deregistration Process – SMME Business Deregistration Explained
Records to Keep After the Account Closes
Deregistering does not mean you can shred everything. In the United States, the standard IRS audit window is three years from the filing date, but substantial underreporting extends it to six years, and fraud removes the limit entirely. Holding tax returns and supporting records for at least seven years after the final filing date covers most scenarios. Employment and payroll records should be kept three to seven years after termination, and formation documents, ownership records, and major contracts should be kept permanently or until all possible legal claims are time-barred.
South Africa follows a similar logic. SARS can audit returns going back several years, so keeping financial statements, bank records, and copies of your submitted RAV01 and any deregistration confirmation well beyond the closure date is the practical move. The formal confirmation from SARS that your registration has been deactivated is worth keeping indefinitely as proof you closed the account properly.