Policy Withdrawals

IMPORTANT POLICY CHANGES – WHAT YOU NEED TO KNOW

Prior to 1 March 2021, South African expats who ceased tax residency and formalised their emigration with the South African Reserve Bank (SARB) could withdraw their retirement funds immediately.

However, under the revised legislation effective from 1 March 2021, retirement interests are now locked in for a minimum of three years after ceasing tax residency. After this three year period, eligible individuals can fully withdraw their South African retirement policies, subject to lump sum tax implications.

Important: Do not delay formalising your non residency in hopes of bypassing the three year lock in. This is a high risk strategy and may result in delays or disqualification.

EARLY ACCESS: CEASE YOUR TAX RESIDENCY FORMALLY

If you have already ceased South African tax residency either through financial emigration or by being classified as a non resident for tax purposes you may qualify to withdraw your retirement policies early, even before maturity.

Have You Ceased Your Tax Residency with SARS?

Even if you’ve lived abroad for more than three years, initiating your financial emigration process now allows us to backdate your non residency status, provided you meet SARS’ requirements. This may immediately qualify you to encash your policies upon successful application.

THE GOLDEN LETTER: SARS Non-Resident Tax Confirmation

In addition to meeting the three year lock in requirement, you must obtain the SARS Notice of Non Resident Tax Status Letter commonly referred to as the “Golden Letter” to legally and successfully withdraw your South African retirement funds.

Find Out More

TAX NON-RESIDENCY AND POLICY ENCASHMENT | ROADMAP

Where a Double Tax Agreement (DTA) applies, it is essential to determine the correct tax treatment of your policy encashment in advance. Failure to do so could result in double taxation or the need to apply for a SARS tax refund. Our tax specialists offer personalised guidance to help you navigate these international tax complexities.

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Policy Withdrawals

IMPORTANT POLICY CHANGES – WHAT YOU NEED TO KNOW

EARLY ACCESS: CEASE YOUR TAX RESIDENCY FORMALLY

THE GOLDEN LETTER: SARS Non-Resident Tax Confirmation

TAX NON-RESIDENCY AND POLICY ENCASHMENT | ROADMAP

CONTACT US

Find Us

Contact Details

In the News

Policy Withdrawals

IMPORTANT POLICY CHANGES – WHAT YOU NEED TO KNOW

EARLY ACCESS: CEASE YOUR TAX RESIDENCY FORMALLY

THE GOLDEN LETTER: SARS Non-Resident Tax Confirmation

TAX NON-RESIDENCY AND POLICY ENCASHMENT | ROADMAP

CONTACT US

Find Us

Contact Details

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