Tag: Financial Emigration

There are many reasons why South African tax residents undertake to cease tax residency through the financial emigration process. One of the reasons is that a successful financial emigration provides one with the rare opportunity to fully encash your policy funds.

Post-COVID-19 economic resurgence saw an increase in international work opportunities. With skills in hand, many South African professionals have become sought-after in other countries. As a result, their finances and subsequent taxation have come under scrutiny. However, along with the awareness of tax complications, another threat has emerged.

The President, on 15 January 2021, assented to the Taxation Laws Amendment Act No. 23 of 2020 (TLAA), which was subsequently promulgated on 20 January 2021. Despite the blow back last year on the proposed amendment to the withdrawal of retirement funding in SA based on emigration, this amendment has now been signed into law and will become effective on 1 March 2021.

The hotly debated amendment to Section 10(1)(o)(ii) or 'Expatriate Exemption' took effect from 1 March 2020, with the questions on many expatriates’ minds often being 'how will SARS find me? What does the SARS audit of an expatriate look like and what questions should I expect?'

National Treasury and SARS published their responses on the Draft Taxation Laws Amendment Bill (TLAB), which included potential relief for South African expatriates who were unable to leave South Africa owing to the COVID-19 lockdown.

An interview with Jonty Leon, Legal Manager, Financial Emigration, and Dr Ivor Blumenthal, CEO, ArkKonsult, discussing the Draft Tax Law Amendment Bill (TLAB) which contains a hidden announcement, which may prove to be the final straw for many ex-South Africans who still have retirement investments left in South Africa.

The Draft Tax Law Amendment Bill (TLAB) contained a hidden announcement, which may prove to be the final straw for many ex-South Africans who still have retirement investments left in South Africa. The TLAB seeks to legislate to prevent a South African who has exited South Africa’s tax base, to withdraw their retirement funds from South Africa, until an unbroken period of 3 years has passed where that person can prove non-tax residency.

South Africa has been bleeding skills in recent years. A top reason being the punitive 'expat tax' regime promulgated in December 2017, and effective 1 March 2020.

The investment landscape has changed profoundly over the past decade, making it easier than ever for individuals to take control of their own investment portfolios. It’s a simple matter for nearly anyone to trade shares via their online banking platform, for example, or to access a range of funds and products from an online stockbroker or wealth management firm.

Investing offshore has nothing to do with patriotism. In the recent past, articles speaking about financial emigration and 'rushing offshore' have painted a picture of Afro-pessimists and skittish investors. Nothing could be further from the truth.