Essentially you become a non-resident of South Africa for tax purposes. There are implications to doing so, but for most it's worth it. Definitely speak to someone who can brief you on your options.
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False, it makes you a non-resident for exchange purposes, not tax purposes.
It can contribute to justification for the ordinary resident test, but this is typically pretty easy to establish anyway. This and the physical presence test determine tax residency.
Kindly provide your source, once again, as I am not incorrect but you are not completely correct either.
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”).
Edit: just consulted my tax consultant. It's one or the other or both - depends on your needs.
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I guess that's a no? So just one person's opinion on a subject they know little to nothing about?
That's a quote from an IOL article, right? From what I've been able to tell only the second part is true. The SARS pages on Tax Residency, literally does not mention financial emigration anywhere.
https://www.biznews.com/global-citizen/2019/03/12/avoiding-expat-tax-financial-emigration
https://www.resbank.co.za/Regulatio...eAndExchangeControl/FAQs/Pages/Emigrants.aspx
Um... ok..
Also, I have literally checked the above with SARS, while in consultancy with a top tax professional.
Johnatan56
Honorary Master
Have they implemented the new rules yet? Don't think Sars will update till then.
The new rules change the rules for tax residents, not the test for tax residency.
OK I literally spoke to a tax consultant 5 minutes ago.
Your implication that financial emigration will not help is both misleading and unhelpful.
It can help avoid passing the ordinary residents test, but so can selling up and leaving the country with your family, which is probably the case for anyone in a situation where FE makes sense. It really makes no difference - your consultant is buying into all the BS that tax professionals who specialize in FE are pushing in order to get more clients, or is possibly one of those people providing FE services to people who don't need it.
Your assertion that FE is the panacea is mindlessly criminal.
Er no, he's retired and earns no money from my consultations. But thanks for playing.
LinkedIn is great, that is how I found work - but also: stackoverflow jobs, Glassdoor and you can contact companies directly. Rework your CV, they don't like CV's that span 5 pages like in SA.
https://www.expatica.com/nl/employm...-interview-tips-for-a-job-application-102340/
Look neither @cguy or myself are experts.
Find someone that specialises in financial emigration from South Africa to the country you're moving to - please don't assume that because you've packed up and left SARS (or SABC
) will automatically leave you alone.We're going through the motions right now and someone with experience is always the best bet.
Look, I'm sure you may think that the word of your retired tax consultant is the word, but it isn't. Do your own research, read the SARS tax-residency definition in detail, and the new changes in detail, or even call SARS, and just ask them.
Actually I'm being emailed a litany of documentation to confirm the position. So I should be fine, but your concern is noted.
Lord Farquart
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Layman’s view on this is as follows. By financially emigrating, you are basically provided with proof that you are square with SARS. You get some sort if certificate from SARS/SARB to this effect.
What can be gained from this? You will now be able to cash out all your retirement stuff you have here. Basically closing everything you have in SA.
One negative is that your bank accounts will be closed/will have to be closed. New SA bank account, if possible, will be as expat.
If you can get documents to SARS/SARB and back, your bank could do this for you for about R2500. If not, other people can donut for R15000 plus. My SIL does this for a living, and the guy in most of the interviews you have seen about this, works for her.
As I am about a year away from actually wanting, possibly, to do this, I have not sat down with her to discuss. Cross bridge when I get there. No need to rush.
What can be gained from this? You will now be able to cash out all your retirement stuff you have here. Basically closing everything you have in SA.
One negative is that your bank accounts will be closed/will have to be closed. New SA bank account, if possible, will be as expat.
If you can get documents to SARS/SARB and back, your bank could do this for you for about R2500. If not, other people can donut for R15000 plus. My SIL does this for a living, and the guy in most of the interviews you have seen about this, works for her.
As I am about a year away from actually wanting, possibly, to do this, I have not sat down with her to discuss. Cross bridge when I get there. No need to rush.
Lord Farquart
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If you guys want, I can try and get my SIL and/or Jonty in here with facts?
Nerfherder
Honorary Master
That's better than what you could get for 3 mil in Cape Town.
You can just get a document from SARS that states that you have no tax owing and no tax returns due. I have such a document.
FE still doesn’t mean that you aren’t a tax resident, and it certainly isn’t required.
It would be good to get another professional in, but the tax residency rules are public, and we already have a discrepancy between professionals (although, I strongly suspect that the top professional I hired holds more weight than a retiree who consults for free). A third opinion with some justification would be a benefit.
As I said @cguy is getting his information from news sites (and his own very personal opinion), rather use a professional (and not a "top professional" that runs a home office from Kempton Park - preferably someone who's worked for one of the big accounting firms for 45 years until last Tuesday).
In fact, ignore the professionals and use someone who has experience in these matters.