FINANCIAL EMIGRATION RULE CHANGE

Budget Speech 2020 announced imminent changes to tax and exchange control treatment of individuals from 1 March 2021. Following reforms to the income tax treatment of South African tax residents who receive remuneration outside the country, government proposes to remove the exchange control treatment for individuals, while strengthening the tax treatment. The intention is to allow individuals who work abroad more flexibility, provided funds are legitimately sourced and the individual is in good standing with the South African Revenue Service. This is set to take place from 1 March 2021 meaning you have under a year to formalise your non-residency for tax purpose under current policy