The financial emigration process through the South African Reserve Bank (“SARB”) is required to break tax residency for South African tax purposes. There are many providers offering this financial emigration service, many of these providers count as our clients, as we are recognised for our tax consulting and tax compliance expertise.
We specialise in the financial emigration process for international South Africans who are primarily completing the process for tax planning and compliance purposes. Following our submissions to the Parliament Standing Committee on Finance on 29 August 2017 by our Managing Partner, Jerry Botha, he confirmed that both National Treasury and SARS noted on record in Parliament that the fiscal formalities are critical and part of our law to confirm non-residency for tax purposes.
The selection process to determine the correct financial emigration provider, or to do this yourself, greatly depends on the complexities of your personal circumstances and the degree to which you require this to establish your non-residency for South African tax purposes.
An incorrectly followed financial emigration process, albeit that you will still achieve the outcomes of cashing in your retirement annuity and foreign exchange allowance (which our associate providers specialize in), does not guarantee SARS acceptance from a tax non-residency perspective. SARS and National Treasury was clear hereon in the 29 August 2017 Standing Committee – the taxpayer must comply with formalities and where the correct compliance steps are not followed, the taxpayer remains in default.
Contrary to misinformation, the financial emigration process does not require the giving up of citizenship, handing in of passport, selling of property or cancelling of bonds and financial products. There is a closure of a South African resident bank account, but a non-resident bank account can immediately be opened and we expertly deal with the more complex questions.
Our team consists of attorneys, chartered accountants, CFP®’s, immigration specialists and Master Tax Practitioners®, thus our full-time staff complement ensures it is ideally geared for the more complex cases where you require technical depth, a team with a track record with SARS including winning tax court cases, backed by a strong administrative team which supports your tax planning and compliance.