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.

Ultimately, Financial Emigration will effectively ensure you do not have to pay “Expat Tax” on your hard-earned foreign income. However, you only have until 1 March 2021 before the process will change from a SARB perspective, making it more challenging to break tax ties.