- HOW WOULD I BE TAXED IF I FINANCIALLY EMIGRATE AND MOVE MY RETIREMENT FUND (WHICH IS TRANSFERRED INTO A PRESERVATION FUND) ONLY AFTER THE PROCESS IS COMPLETE?
- Withdrawal from a Retirement Fund upon conclusion of Financial Emigration will result in such funds being taxed in terms of the special tax tables specifically used for the calculation of tax on lump sum withdrawals. The tax tables can be found using the following link: https://www.sars.gov.za/Tax-Rates/Income-Tax/Pages/Retirement-Lump-Sum-Benefits.aspx
- IF I AM SUCCESSFUL IN THE FINANCIAL EMIGRATION PROCESS, IS THAT SUFFICIENT PROOF OF NON-RESIDENCY?
- Yes, where the Financial Emigration process is completed through our company, we are able to guarantee that you will be noted as a non-resident with SARS and SARB. As the onus is on the taxpayer to prove that they are not a tax resident, the Emigration Tax Clearance Certificate (“ETCC”) serves to discharge that particular onus.
- IS MY TAX RESIDENCY STATUS AFFECTED IF THE FINANCIAL EMIGRATION PROCESS IS COMPLETE, BUT I STILL HAVE AND/OR ACQUIRE INTERESTS IN SA (WHICH COMPLICATES MY ORDINARY RESIDENCY TEST)?
- We would need to do a further investigation on your circumstances in order to ascertain your tax residency status. We are able to provide you with a Tax Residency Opinion that would assist in confirming your intention and whether such intention is sufficiently supported by your surrounding circumstances.
- I FINANCIALLY EMIGRATED IN 2019 AND IT WAS BACKDATED IN 2007, DO I PAY CAPITAL GAIN TAX IF I SELL MY PROPERTY IN SOUTH AFRICA?
- Yes, you would still pay CGT on the property in South Africa upon sale thereof.