FINANCIAL EMIGRATION

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 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.

“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, 18 October 2019

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 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 FATCA 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.

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.

We have over 75 full-time professionals including a highly specialised team of admitted tax attorneys, chartered accountants, CFP®’s, financial emigration specialists and tax practitioners who are geared for the more complex cases where you require technical depth and with a proven track record of guaranteeing non-resident tax status with SARS and SARB through Financial Emigration.

PROCESS SNAPSHOT

  • Financial Assessment

    Once we receive your details we will conduct an assessment of your financial position.

  • Gather Required Documents

    We will send this onto you with a comprehensive quotation of our services to assist you in completing the process of your financial emigration.

  • Update Taxes

    We will handle everything from start to finish with no input from you besides the initial paperwork that is required at this point. We will send you the necessary forms to complete a list of the documentation required.

  • Apply for tax clearance

    We then update your taxes and apply for your tax clearance certificate.

  • File with sarb

    File your financial emigration application with the SARB.

  • Transfer funds

    Once approval is received from the SARB, you may proceed to transfer your funds offshore.

Enquire now about our Financial Emigration Solution

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