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CEASE TAX RESIDENCY WITH SARS

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IN PARTNERSHIP WITH MARKET LEADING EXPATRIATE TAX COMPANIES

Taking care of the entire Financial Emigration application process on your behalf from start to end.
Dealing closely with SARS we ensure full compliance with all legislation.

I AM STILL IN SOUTH AFRICA

WHAT IS MY EXIT STRATEGY?

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I AM STILL IN SOUTH AFRICA

WHAT IS MY EXIT STRATEGY?

If one plans to relocate from South Africa then tax planning is necessary to ensure that one does not get caught in the pitfalls of moving abroad, whether this is from the perspective of possible double taxation, a too-high tax burden or as a consequence of the exit tax. There are certain tax obligations that need to be met when one exits South Africa.

Depending on each taxpayer’s circumstances, a strategy can be put in place to minimize their tax obligations and ensure full compliance. As a first step, it is best to begin with a tax diagnostic of your tax profile and, from there, consider one’s tax residency status and how your banking will be affected as an expat.

I AM ALREADY ABROAD

LET’S CEASE MY TAX RESIDENCY

Upon emigration, one of the most pertinent issues to be addressed is whether a taxpayer will still be considered a “resident” for tax purposes in South Africa.

Expatriates whose intention is to remain abroad permanently, will qualify for the Financial Emigration (FE) process. This should be considered by South Africans who have departed with a permanent intent to reside abroad.

The FE process is once-off and will enable expatriates to permanently break their status as South African tax residents. This will also enable them to encash their retirement fund interests in South Africa, sans apportionment for an annuity, after three years following their residency cessation date.

If the taxpayer intends on returning to reside in SA again one day, then they may consider a temporary cessation of their tax residency via the DTA (if there is one in place), should the country they are in have a DTA treaty with SA. However, ceasing tax residency does not automatically happen – this must be formalized with SARS in every case.

I AM ALREADY ABROAD

LET’S CEASE MY TAX RESIDENCY

Let’s Proceed!

I AM STILL UNDECIDED

WHAT DOES THE FORMAL PROCESS ENTAIL?

Let’s Proceed!

I AM STILL UNDECIDED

WHAT DOES THE FORMAL PROCESS ENTAIL?

Deciding on whether to break one’s tax residency or not, is a complex matter. It also is a question of whether one actually qualifies to cease their tax residency or not. There are many factors to consider in each individual taxpayer’s situation, such as their intentions for the future, type of employment or other income earned, as well as foreign and local assets. All of these factors, and others, would have an impact on what the individual will qualify for in terms of tax relief. The formal process of changing one’s tax residency status is a legal process that is undertaken with SARS and the authorized dealers (banks) in South Africa. It is, unfortunately, not a simple application – it must be considered in detail and submitted correctly, to ensure full compliance.

FINANCIAL EMIGRATION:
THE SARS 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 complex process and can help you complete your Financial Emigration and guarantee non-tax residency through SARS. This will provide you with protection whilst ensuring your foreign earned income remains tax-exempt in South Africa.

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“Therefore, if one financially emigrates (taking into consideration the tax residency tests) that would then indicate that the taxpayer ceased to be a tax resident.”

SARS, Foreign Employment Income Team

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LET US TAKE CARE OF IT. ALL OF IT.

CEASE TAX RESIDENCY WITH SARS

Speak to us about your next steps

I AM STILL IN SOUTH AFRICA

I AM ALREADY ABROAD

I AM STILL UNDECIDED

IN PARTNERSHIP WITH MARKET LEADING EXPATRIATE TAX COMPANIES

WHAT IS MY EXIT STRATEGY?

WHAT IS MY EXIT STRATEGY?

LET’S CEASE MY TAX RESIDENCY

LET’S CEASE MY TAX RESIDENCY

WHAT DOES THE FORMAL PROCESS ENTAIL?

WHAT DOES THE FORMAL PROCESS ENTAIL?

FINANCIAL EMIGRATION:THE SARS CONFIRMED PROCESS TO CEASE TAX RESIDENCY

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I AM STILL IN
SOUTH AFRICA

I AM ALREADY
ABROAD

I AM STILL
UNDECIDED

FINANCIAL EMIGRATION:
THE SARS CONFIRMED PROCESS TO CEASE TAX RESIDENCY