Tag: exit tax
Isle of Man emerging as territorial forerunner among SA investor expats
As the South African Revenue Service (SARS) intensifies its focus on the tax compliance of high net-worth individuals (HNWI), a self-governing island nation located in the Irish Sea has steadily emerged as an appealing emigration destination for prospective South African expatriates.
Government withdraws proposal to impose exit tax on retirement interests
Expatriates and those with plans to emigrate will be relieved to learn that the proposal to impose an exit tax on retirement interests will be withdrawn. In presenting their Draft Response Document on the 2021 Draft Tax Bills, National Treasury and SARS confirmed that the proposal will not be included in final Taxation Laws Amendment Bill that will be tabled in tomorrow’s Medium Term Budget.
Is the proposed tax on retirement interests an ‘exit tax’?
The most contentious proposal introduced by the 2021 Draft Tax Bills is arguably the tax on retirement interests when a person ceases tax residency. The proposed tax has widely been christened as a further 'exit tax' imposed on South Africans leaving the country. However, based on responses by the Minister of Finance to a written parliamentary Q&A, some have questioned whether the proposal can rightfully be classified as an 'exit tax'.
