The National Treasury has placed more emphasis on SARS compliance for South Africans who transfer funds out of South Africa and has removed certain exchange control measures, most notably the financial emigration process.
The National Treasury has placed more emphasis on South African Revenue Service compliance for South Africans who transfer funds out of the country and has removed certain exchange control measures – most notably the financial emigration process.
Be able to demonstrate to your fund provider that you have been tax resident in another country for three consecutive years or more before you can encash the RA and take it out of the country.“Before they can begin the process, they will also need to obtain authorisation from SARS in the form of a tax directive, and SARS will only issue this if your tax status has been correctly updated to non-resident,” Powell said.South Africans are entitled to two allowances for transferring money offshore.
“This means that any transfers out of South Africa after tax emigration will require tax clearance in ensuing years,” said Powell.If you’re a South African living overseas and you inherit in South Africa, there have been a few changes to how you can transfer that inheritance offshore, noted Powell. Prior to 1 March 2021, if you did not have an SA ID you could have completed the financial emigration process.
Sometimes dubbed “exit tax”, this amount is essentially SARS claiming what tax it would have received had you sold the assets while you were a South African tax resident, said Powell.
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