Stringent Financial Emigration Tax Rules On The Horizon

Budget Speech 2020 announced imminent changes to tax and exchange control treatment of individuals from 1 March 2021 consisting of a new stringent verification process that will trigger a risk management test and include certification of tax status. Therefore, South Africans working abroad permanently have 9 months left to formalise non-tax residency through current Financial Emigration (“FE”) regulations or be faced with tougher exit rules under a new dispensation.