“The formalisation of the tax residency status of South African tax residents who left the country many years ago is to be encouraged.”
– National Treasury, Parliament, 14 September 2017
Tax Consulting South Africa offers a bespoke service to individuals wishing to formally emigrate financially from the Republic of South Africa. We have over 70 full-time professionals including a highly specialised financial emigration and legal team with experience across a number of different fields allowing us to offer expert advice across the board. This uniquely enables us to facilitate your complete financial emigration as well as the recovery of any financial assets such as retirement savings and tax income.
The process of “Financial Emigration” terminates your tax residency status with the South African Revenue Service (“SARS”) as well as your status as exchange control resident with the South African Reserve Bank (“SARB”). The SARS process includes a verification or “audit” procedure, as financial emigration is not something that is casually agreed to by SARS, because they are prohibited from taxing the non-resident on worldwide income. The upshot is also that when you complete your South African or offshore bank’s CRS and/or FACTA forms, you can formally note yourself as non-resident for South African tax purposes. The SARS process is duly evidenced by an “Emigration Tax Clearance Certificate”, which is part of South African Administrative Law and comes with a guarantee as per section 33 of our Constitution.
It is important to select a reputable service provider, as 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.
In addition, and 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.
To make the process much easier, we have aligned our offering with a leading financial institution to offer you the best possible currency rates once your financial emigration is complete and you are ready to move your money out of South Africa.
Answer a few simple questions to begin the process: