Financial Emigration from South Africa

The process of “Financial Emigration” terminates your tax residency status with the South African Revenue Service (“SARS”) as well as your status as exchange control resident with the South African Reserve Bank (“SARB”). The SARS process includes a verification or “audit” procedure, as financial emigration is not something that is casually agreed to by SARS, because they are prohibited from taxing the non-resident on worldwide income.

The upshot is also that when you complete your South African or offshore bank’s CRS and/or FATCA forms, you can formally note yourself as non-resident for South African tax purposes. The SARS process is duly evidenced by an “Emigration Tax Clearance Certificate”, which is part of South African Administrative Law and comes with a guarantee as per section 33 of our Constitution.

We have also have in-house forex specialists and a partnership with a leading financial institution to offer you the best possible currency rates once your financial emigration is complete and you are ready to move your money out of South Africa.

Jonty Leon discuss the change in Expat Law on ENCA News