Process for cashing out RA and transferring overseas

M

MikyMouse

Senior Member
Joined
Jan 11, 2011
Messages
803
Reaction score
3
Location
Johannesburg
Hey everyone!

TL;DR: Does anyone know the process for cashing out an RA and transferring the proceeds overseas?

I haven't been a tax resident for quite some time now (more then 3 years) and want to withdraw my RAs in SA and transfer them overseas.

I've contacted FNB as well as Sygnia to do this and the process still seems a bit foggy to me, but from my understanding:
  1. I first need to setup a Non-resident bank account
  2. Then have my RAs withdrawn to this new account
  3. Then initiate a transfer from this bank account to my foreign bank account (with a SARS AIT pin)
Can anyone verify if this is correct?

Also when / who and how do I pay the capital gains tax on my RAs?

Thanks!
 
MikyMouse said:
Hey everyone!

TL;DR: Does anyone know the process for cashing out an RA and transferring the proceeds overseas?

I haven't been a tax resident for quite some time now (more then 3 years) and want to withdraw my RAs in SA and transfer them overseas.

I've contacted FNB as well as Sygnia to do this and the process still seems a bit foggy to me, but from my understanding:
  1. I first need to setup a Non-resident bank account
  2. Then have my RAs withdrawn to this new account
  3. Then initiate a transfer from this bank account to my foreign bank account (with a SARS AIT pin)
Can anyone verify if this is correct?

Also when / who and how do I pay the capital gains tax on my RAs?

Thanks!
Click to expand...
If you're under 55 years old, you'll have to have financially emigrated to get this right.

SARS would then issue a tax clearance and the RA provider would pay out to a SA bank account in your name. If you don't have one, you can open a "blocked account" with any of the large SA banks. This type of account allows you to receive funds and to transfer them overseas, but cannot be used as a transactional account for any other purposes.

No CGT implications as far as I'm aware.
 
vigras rojara said:
If you're under 55 years old, you'll have to have financially emigrated to get this right.

SARS would then issue a tax clearance and the RA provider would pay out to a SA bank account in your name. If you don't have one, you can open a "blocked account" with any of the large SA banks. This type of account allows you to receive funds and to transfer them overseas, but cannot be used as a transactional account for any other purposes.

No CGT implications as far as I'm aware.
Click to expand...
Hey thanks!
 
I have tried this, but I am unable to do ANYTHING to my RA until such time as I am 65 - it is a "Government fund" of some sorts, which is untouchable..
Otherwise I would have taken that money and pushed it overseas yonks ago
 
Anthro said:
I have tried this, but I am unable to do ANYTHING to my RA until such time as I am 65 - it is a "Government fund" of some sorts, which is untouchable..
Otherwise I would have taken that money and pushed it overseas yonks ago
Click to expand...
ouch - damn
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X