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 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.
“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
HERE’S WHAT OUR CLIENTS HAVE TO SAY…
EXCELLENTBased on 202 reviewsAlicia Scheepers2024-09-19I have never dealt with a more efficient company in my life! Service with a smile, helpful, prompt responses and flawless execution of every request. Can not recommend them enough!Lesley Yao2024-09-16Khomotso and her team have been very helpful, and made the financial emigration process as stress free as possible! Always professional and quick to respond.Cathy Perryman2024-09-15Thank you Nikolas Skafidas for your prompt assistance in confirming our Non-tax residency status with SARS. It is a great relief to know that everything is in order going forward.Saul Hack2024-09-13Highly recommended. Competent team making for an easy process.Pieter Hanekom2024-09-12Fast, efficient and responsive service for all members in the team. I cannot thank you enough for your efforts to navigate and solve my tax queries with SARS.Loren Benjamin2024-09-10Fast, professional and reliable. I was very pleased with the service received from beginning to end. The team explained the process, guided me through it, set expectations and managed progress. Highly recommended.CLARE O'REILLY2024-09-06I greatly appreciate the excellent service I receivedKevin Sagar2024-08-26A+ Shuanita and her team guided us thru the complicated and tedious process which would have been impossible to do myself. Although being on the other side of the world, communication and documentation was a breeze. With Shuanita and her teams expertise and professionalism I would highly recommend them.Marthin Steyn2024-07-31The South African financial emigration process can be tough but the team at Financial Emigration persisted in a professional way to get the job done despite all the challenges. We would never have been able to get the process finalised without their assistance.
IN THE MEDIA
RADIO AND TELEVISION
LATEST ARTICLES
IN THE MEDIA
LATEST ARTICLES
AS FEATURED IN
LET US TAKE CARE OF IT. ALL OF IT. ALL OF IT.
Find Us
Johannesburg
17 Eaton Avenue
Bryanston
Gauteng, 2191
South Africa
George
55 York Street
Dormehls Drift
George, 6529
South Africa
Contact Details
Telephone:
South Africa: 011 467 0810
International: +27 11 782 5289
Email:
contact@financialemigration.co.za
In the News
- Navigating Inheritance: Key Considerations for South African Expatriates10/16/2024 - 09:58
- Contemporary Financial Emigration Myths and Misconceptions10/15/2024 - 09:02
- Ceasing of South African Tax Residency: A Back-to-Basics Approach09/30/2024 - 08:26
- Timing Is Everything For SA Expatriates When It Comes To Two-Pot System Withdrawals09/25/2024 - 11:45
- South African Expats: How Will SARS Find You?09/06/2024 - 09:24