THE NEW FINANCIAL EMIGRATION
CONFIRMED PROCESS TO CEASE TAX RESIDENCY
Financial emigration is the process used by many South Africans abroad to formalise their non-resident tax status for both tax and exchange control purposes. The process has been extremely successful for South Africans to cut tax ties, and as such, SARS has made it more difficult to cease tax residency by amending the process effective 1 March 2021. We have an in-depth understanding of the new process and can help you complete your Financial Emigration and guarantee non-tax residency through SARS. This will provide you with protection from #ExpatTax2021 and ensure your foreign earned income remains tax-exempt in South Africa.
FINANCIAL EMIGRATION SOUTH AFRICA 2021
Financial emigration from South Africa has changed from 1 March 2021. The old financial emigration process has been replaced with a new regime that comes a host of positives and negatives. A positive being the antiquated legislation around exchange control for the process is completely falling away, however, on the other hand, the tax treatment of the process will be more stringent with a focus on tax residency only, potentially making it more onerous to overcome the burden of proving non-resident status.
THE NEW FINANCIAL EMIGRATION PROCESS WILL INCLUDE INTER ALIA
- A focus from SARS specifically on tax residency in terms of the South African tax residency tests
- The application for an Emigration Tax Clearance Certificate, with supporting documents to prove non-resident status
- An “exit tax” calculation on worldwide assets, in terms of section 9H of the Income Tax Act
- A stringent audit by the SARS auditors and potentially by the dedicated SARS Foreign Employment team
- Approval by SARS before any funds may be expatriated by an authorised dealer based on emigration
FALLING AWAY FROM THE FINANCIAL EMIGRATION PROCESS
- SARB MP336(b) form and application
- Requirement for an authorised dealer to attest the application
- Requirement of SARB approval before conclusion of the application
- Archaic restrictions on bank accounts after they have been converted into non-resident accounts
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FINANCIAL EMIGRATION ASSESSMENT
About Us
Our experienced team helps individuals and families navigate the complex process of relocating their financial assets abroad. Our mission is to provide you with peace of mind and a smooth transition to your new financial home.
Thank you for choosing us – We look forward to serving you!
Find Us
Johannesburg
Wrigley Field, The Campus
57 Sloane Street, Bryanston
Gauteng
George
55 York Street
Dormehls Drift
George
Contact Us
Telephone:
South Africa: 011 467 0810
International: +27 11 782 5289
Contact
contact@financialemigration.co.za
©Copyright – Financial Emigration 2023