IS THE NEW EXIT TAX CONSTITUTIONAL?

The 2021 Draft Tax Bills published proposed the introduction of a tax on the retirement interests of those who cease their South African Tax Residency. It means a new section will be inserted in the Income Tax Act that would take effect from 1 March 2022. The new Exit Tax may very well lead to the double taxation of retirement interests in South Africa and other countries.

Jean du Toit

Jean du Toit
Head of Tax Technical

Thomas Lobban

Thomas Lobban
Legal Manager of Cross Border Taxation