Government proposes additional ‘exit tax’ on emigrating South Africans

TelkomUseless

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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.
ANC is not in the game to run the country successfully. They are in it for the money... when we hit Zim status, they will have money in Dubai etc...
 

Ancalagon

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I've sold my property in SA, so, as soon as the transfer has gone through and the bond account is closed, I can close my cheque account and then financially emigrate. The SA government won't get another cent from me.
 

Swa

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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.
That's the thing, they don't care. It doesn't matter to them what happens to the party. What they're doing to the ANC must be the NP's wet dream.
 

Milano

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Entirely misguided as usual. There is no penalty that will encourage productive individuals to remain in an irreversibly damaged society governed by corrupt vultures. Desperate policies smell like rotting flesh and only accelerate the exit.
 

RVQ

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Entirely misguided as usual. There is no penalty that will encourage productive individuals to remain in an irreversibly damaged society governed by corrupt vultures. Desperate policies smell like rotting flesh and only accelerate the exit.
It's not about keeping skill, it's about finding new revenue streams to fund their corruption.
 

Milano

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It's not about keeping skill, it's about finding new revenue streams to fund their corruption.
The aim is to impede the outflow of capital. Exit tax will marginally succeed in impeding capital outflow. The cost however on the inflow of capital is enormous. This is a massive billboard that confirms SA is not an investable destination as its own government has no confidence in its own policies to attract and hold capital.
 

Tman543

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ANC should please put more energy in eradicating corruption that can recover billions instead of focusing on the peanuts that the skilled workers are using to try to find a safer place to live.
 

RedViking

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Entirely misguided as usual. There is no penalty that will encourage productive individuals to remain in an irreversibly damaged society governed by corrupt vultures. Desperate policies smell like rotting flesh and only accelerate the exit.
And don't think they are misguided. It is not to stop you from leaving, but to take more from you as you leave. They know it won't stop you from leaving, they just want to make sure they get that last but milked out of you as well.
 

The Darkness

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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.
Taxing me to leave will not make a difference. I'd leave with nothing if I can. SA is done. After this last few years here, it's clear as day what rotten self-serving cretins fester our halls of leadership. KZN was the cherry on the top.
 

Brenden_E

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I've sold my property in SA, so, as soon as the transfer has gone through and the bond account is closed, I can close my cheque account and then financially emigrate. The SA government won't get another cent from me.
The day I sold my SA property was a paradox. Very happy and super sad at the same time.
 

Milano

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Before we all pick-up to leave for Australia the land of paradise, citing how horrible ZA is and blah blah blah, other countries do similar things too: https://en.wikipedia.org/wiki/Expatriation_tax

Whether or not we're doing it any worse than they are I don't know.
We have long had CGT trigger on financial emigration. This tax in the article is an additional tax. Doubt anybody would pick up and leave due to this additional tax alone. It would more likely be the measure of the entire bundle of cons that make SA unfavourable together with the trajectory which assures additional unfavorable prospects. The world is vast, not everybody moves or even wants to move to Aus.
 

Swa

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And don't think they are misguided. It is not to stop you from leaving, but to take more from you as you leave. They know it won't stop you from leaving, they just want to make sure they get that last but milked out of you as well.
That's the irony, it will most likely cause more to leave. Then it may not have the desired effect. Those leaving and that can will structure it so it looks like they aren't until they get their hands on their pensions and then transfer them out through whatever means necessary. There's also the knockon effect that it will cause more people from now on to put their investments into foreign stock. The ANC doesn't seem to realise they're in a death spiral and what to do to get out of it.

Then the reality that this policy uncertainty is not a recipe for investment. I'm waiting for the day when Squirrel at a conference wants to speak to investors and they turn around and leave.
 

Swa

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Before we all pick-up to leave for Australia the land of paradise, citing how horrible ZA is and blah blah blah, other countries do similar things too: https://en.wikipedia.org/wiki/Expatriation_tax

Whether or not we're doing it any worse than they are I don't know.
That's different. CGT is a tax you'd pay in any case. They just move the date forward and the imaginary disposal value becomes the new acquisition value so you don't pay any additional tax.
 

krycor

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So it looks like u pay tax for withdrawing and exit capital tax..

So uhm.. u mean to tell me people weren’t paying for withdrawing their RA?
 
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