IS THE PROPOSED TAX ON RETIREMENT INTERESTS AN EXIT TAX?

The most contentious proposal introduced by the 2021 Draft Tax Bills is arguably the tax on retirement interests when a person ceases tax residency. The proposed tax has widely been christened as a further “exit tax” imposed on South Africans leaving the country. However, based on responses by the Minister of Finance to a written parliamentary Q&A, some have questioned whether the proposal can rightfully be classified as an “exit tax”.

Jean du Toit

Jean du Toit
Head of Tax Technical