African tax residents that are ‘temporarily abroad’.
It is here that these South Africans abroad, who
have invariably not kept their South African tax
submissions up to date, run into trouble.
At this point, there are two options to
successfully unlock capital:
1. To retain their SA tax residency, submit all
outstanding South African tax returns and
payments to date, and then only apply for annual
FIA clearance through SARS and the Reserve
Bank.
2. To formally emigrate.
Emigration
Unlocking SA capital though formal emigration
(also referred to as financial emigration) effectively
allows South Africans unlimited access to their SA
capital, with certain conditions and consequences.
As the SA tax system is based on worldwide income
and assets, those seeking to emigrate after having
left the country will need to consider the potential
Capital Gains Tax (CGT) implications on all global
assets, as they become a non-tax resident in SA.
On settling SA taxes and receiving tax clearance
and emigration approval through the SARB,
applicants are able to transfer assets to the same
value as through the regular allowance channels (R11
million per individual) but are able to make a further
special application to the SARB for greater amounts.
www.reimag.co.za
What about Pension Assets?
Prior to 2008, South African’s abroad could not access
capital tied up in many South Africa retirement
funds. Retirement Annuities and pensions have long
been viewed by expats as ‘dead capital’. However,
subsequent changes to legislation have resulted in
these assets being recoverable through application to
the SARB and financial emigration.
Although the doors to access capital in SA have
largely been opened, it is by no means a simple
process.
Money Migrate offers the ability for South African expats to
access a dedicated South African-based service designed to
assist individuals in transferring capital from South Africa to
any destination worldwide including:
• South African Tax administration service to deal with all
SARS requirements
• Application for a Emigration/Foreign Investment
Allowance
• Recovery of South African pensions and Retirement
Annuities
• Opening a non-resident bank account
• Forex transfers
• Holistic global structuring advice.
RESOURCES
Money Migrate, Sable Forex
Offshore Handbook 2016
25