Emigration and movable assets in ZA

[Sinbad]

If you apply to SARS to become non-tax resident, they will explicitly ask whether you have any belongings in storage in South Africa. If you do, unless you have a very good explanation, they will deny your application on the basis that having belongings in storage indicates that you still have ties to the country and possibly intend to return.

You could argue that they are investments. There's nothing stopping an offshore person investing in SA. (apart from common sense of course)

 

[JayM]

Nope I didn't. AFAIK that is a financial emigration thing which isn't relevant any more? And only useful if you have millions in it you want to transfer out?

Be interested to find out if they'll FICA to a foreign address. I think even without financial emigration, you're obliged to make it non-resident...

 

[Sinbad]

Be interested to find out if they'll FICA to a foreign address. I think even without financial emigration, you're obliged to make it non-resident...

I dunno

These are my physical address details in the fnb app...

 

[JayM]

I dunno

These are my physical address details in the fnb app...

I assume you just downgraded to the cheapest account? I need to do something similar in the next couple of months.

 

[Sinbad]

I assume you just downgraded to the cheapest account? I need to do something similar in the next couple of months.

Yeah. I am probably going to close it soon - just one more transaction I need that I know of (getting my RA out - and I believe that has to go into an SA account)

 

[syntax]

If you apply to SARS to become non-tax resident, they will explicitly ask whether you have any belongings in storage in South Africa. If you do, unless you have a very good explanation, they will deny your application on the basis that having belongings in storage indicates that you still have ties to the country and possibly intend to return.

I may be wrong but I dont think I was asked this at all. They cared alot about me proving I was not living in SA, the first time I was rejected even though I showed I sold my house, had a rental agreement in the UK, a permanent job in the UK etc.

 

[JacD]

Why has the view changed that financial emigration is no longer relevant? Given that the rules change from time to time is it not logical to go through the process and remove yourself from any risk?

 

[Rumple4skin]

Why has the view changed that financial emigration is no longer relevant? Given that the rules change from time to time is it not logical to go through the process and remove yourself from any risk?

Don't know if FE is still a thing, but it does not/did not make you a non-tax resident automatically. All it did was add more proof that you do not plan to return to SA. You could still fail SARS' ordinarily resident test if you still have/had certain ties to SA. This is only from an expat view though. Can't speak for complete emigration.

 

[Sinbad]

Why has the view changed that financial emigration is no longer relevant? Given that the rules change from time to time is it not logical to go through the process and remove yourself from any risk?

Because the law has changed and the concept of financial emigration is being phased out.
As mentioned above, it had nothing to do with tax.

Financial emigration vs tax emigration – understanding the difference

Now that financial emigration no longer exists, there’s a new process to follow. Sable explains everything you need to know.

www.biznews.com

 

[sjm]

My understanding is that ultimately the FNB CI account is still party to ZA regulations and governance.

As my intention is emigration, I'd prefer to move my life wholly to the UK.

My employer is still working out the details pertaining to me moving over, so things are rather fuzzy at present. I will certainly have access to some fixed address in the coming months.

My understanding is that FNB CI accounts are party to Gurnsey regulations and governance, not SA. An FNB Global account is an SA account and is party to ZA regulations and governance.

 

[ISP cash cow]

My understanding is that FNB CI accounts are party to Gurnsey regulations and governance, not SA. An FNB Global account is an SA account and is party to ZA regulations and governance.

Yeah I was under the same impression, as I know Nedbank has banks in the channel islands and I wanted to open one and I would have had to open a whole "new account" even though I am a South African Nedbank client

 

[bridgeburner]

As has already been pointed out. Fin Emigration and applying for non-tax residency is not the same thing. FE is going away. And a CGT event is triggered on the day you became non-tax resident.

Getting non-tax residency is fairly straight forward if you have your ducks in a row. But yeah, if you have things left in SA, SARS may ask you about that which could affect the outcome. They certainly did with me. Its best to get proper, reputable advice to be honest. Consider this as part of your emigration costs.

I still have my Standard Bank account going, with like a 1000 bucks in it with my old SA address linked to it. Tbh I'm not sure about changing it to a non-resident account.. I haven't really bothered as I only occasionally used it to send money to my late mother.

I'd say the off shore FNB account is ok for now, but its fairly easy to walk into a high street bank and open an account once you're here.