Government proposes additional ‘exit tax’ on emigrating South Africans

Not surprising. Luckily the biggest part of the population with real money already emigrated. They are scraping the barrel now.
 
grok said:
I'd still leave & just call it the cost of living in Africa.

You can't tax people into staying, and you can't make more money 'cos the cadres' just gonna steal it anyway,

Enjoy your Corruptheid.
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Yeah, as the people are fleeing the country, businesses closing down and relocating abroad, they are starting to feel the pinch in their annual tax income. They are now doing exactly the opposite than what any sane country would do...

1. They are trying to stop people from emigrating, or
2. They are trying to grab the last money they can before losing the taxpayer forever.

Either way, this will not end well for the ANC. If I was them, I would invest heavily in purchasing books on Africa histories to see what awaits them in future.
 
The Draft Taxation Laws Amendment Bill (TLAB) contains a particularly jarring amendment which proposes to tax retirement fund interests of individuals when they cease South African tax residency, says Jean Du Toit, head of tax technical at Tax Consulting South Africa.
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one more reason why you shouldn't put your money to retirement fund.
 
Mortymoose said:
Buy a yacht, Buy gold, melt into rails and fittings and sail away.....
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Cease to resist, giving my goodbye
Drive my car into the ocean
You'll think I'm dead, but I sail away
On a wave of mutilation
A wave of mutilation
Wave of mutilation
Wave
Wave
 
businesstech.co.za

Government proposes additional ‘exit tax’ on emigrating South Africans

National Treasury has published the latest Draft Tax Bills, which incorporates tax proposals made in the 2021 Budget.
businesstech.co.za businesstech.co.za

National Treasury has published the latest Draft Tax Bills, which incorporates tax proposals made in the 2021 Budget.

The Draft Taxation Laws Amendment Bill (TLAB) contains a particularly jarring amendment which proposes to tax retirement fund interests of individuals when they cease South African tax residency, says Jean Du Toit, head of tax technical at Tax Consulting South Africa.

“It is important to note that the Income Tax Act already makes provisions for an exit tax where a person ceases their South African tax residency. The act creates a fiction whereby a person who ceases residency is treated as having disposed of their assets at market value, triggering a tax liability.
 
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They're conflating tax residency and financial emigration again
 
Hamster said:
They can keep my RA at this point, wrote it off long ago. Second worst financial mistake I ever made after selling my paid off car.
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What would you suggest over an RA of you planning to emigrate?
 
SAguy said:
What would you suggest over an RA of you planning to emigrate?
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There are many things to consider - your age, how much money you have, when you are planning to emigrate...

Maybe the biggest question one should ask oneself is "why am I investing in an RA in the first place?". Does the tax break plus the "stunted by reg 28" growth really outperform the performance of something like the SP500?

Anyway, to each their own. The bulk of my investments have been in feeder fund ETFs for a long time and when we started getting serious about emigrating I invested less and kept more cash. I also had cash in my bond but with the low interest rates that's not really a worthwhile option anymore.
 
Instead of rather sitting behind closed doors and addressing the real causes for taxpayers fleeing the country, it is much easier to threaten people with more taxes in the hope they would rather stay. As with the usual ANC, this too will fail. More taxpayers will leave, irrelevant of being taxed more when leaving. The government may well be facing its biggest challenge in its existence, and will likely be their last challenge they need to worry about.
 
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