HOW FAR CAN YOU BACKDATE THE FINANCIAL EMIGRATION PROCESS?
Financial Emigration can be backdated to as far as when you first left South Africa. our team of Financial Emigration Specialists can further advise on any limitations and/or conditions.
IS IT TOO LATE TO APPLY FOR FINANCIAL EMIGRATION GIVEN THAT IT WILL BE PHASED OUT FROM MARCH 2021?
No, it is not. The best time to apply for Financial Emigration would be between now and 1 March 2021 before the changes to the SARB process of Financial Emigration are implemented.
IS THERE A LIMIT ON THE NUMBER OF DAYS PER YEAR THAT ONE CAN BE IN SOUTH AFRICA WHEN FINANCIALLY EMIGRATING?
Once financially emigrated, you would need to ensure that you do not trigger tax residency again by way of the physical presence test when coming into South Africa.
WHEN MUST THE FINANCIAL EMIGRATION PROCESS BE COMPLETED TO AVOID THE NEW EXPAT TAX LAW?
The expatriate tax law has already come into effect as of 1 March 2020. Therefore, should you have an intention to remain outside of South Africa on a permanent basis, the Financial Emigration process would need to be completed as soon as possible.
IF YOU INTEND ON RETIRING IN SOUTH AFRICA AFTER 20 YEARS OF WORKING ABROAD, IS IT CONSIDERED AS “RETURN FROM WANDERINGS”?
Generally speaking, yes. if your intention at this particular point is to return in the near or distant future, it is still considered that you have an intention to return and therefore remaining a tax resident in terms of the Ordinarily Resident Test.
WHAT ARE THE IMPLICATIONS OF “FAILED EMIGRATION” WHEN GOING THE FINANCIAL EMIGRATION ROUTE?
Funds transferred outside of South Africa in excess of R11 million will need to be repatriated. Insofar as SARS is concerned, there would not be any penalties nor would SARS impose tax in respect of the previous years of assessments for so long as the intention at the time of ceasing tax residency was to remain abroad on a permanent basis.