UNDERSTANDING THE DRAFT TAX AMENDMENT BILL

Previously, President Ramaphosa signed into law a three-year retirement fund lock-in, which came into effect on 1 March 2021. However, National Treasury has put forward a Draft Tax Amendment Bill that could greatly impact the retirement funds of emigrating South Africans in the form of an additional exit tax, which will come into effect on 1 March 2022.

To better understand the proposed changes if they are signed into law, as well as the effect they will have on those hoping to emigrate, we have created 3 likely scenarios that await taxpayers should they cease their tax residency or conclude a financial emigration after 1 March 2022.