What is the difference between financial emigration and leaving the country? 

If you have left South Africa and are living abroad without notifying the South African Reserve Bank (SARB), you are still classified as a South African resident, living temporarily abroad. You are subject to the same tax laws and financial regulations as people living in South Africa. 

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Financial Emigration on the other hand negates those financial circumstances. 

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Why do I need to consider financial emigration from South Africa? 

Countries have formed alliances for disclosure purposes and from March 2020, all ‘South Africans’ living permanently abroad who have not formally ‘emigrated’ will pay South African tax on earnings over a certain amount. This will be income tax and possibly double taxation for you on the excess. 

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When you emigrate formerly, you effectively end your resident tax status and all worldwide assets are treated as sold. Deemed sales will be subject to capital gains tax. This is a second tax and targets your wealth. With a weakening rand, you may be no wealthier in Pounds or Dollars, but you may show greater assets in Rands. 

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How secure is my personal information with ACS PLUS? 

We are Tax Practioners and members of SAICA – the body that governs Chartered Accountants (commonly known as CA’s) As professionals, all information of clients is sensitive and remains highly confidential. 

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Once financial emigration is over, can I return to South Africa to visit, work and live? 

A financial emigration prevents SARS from treating you as a resident (i.e. prevents SARS taxing you on worldwide income, and limits them to South African income only …if any) It also prevents the Reserve bak (i.e. SARB) restricting the movement of your funds out of South Africa. You still keep your passport and can renew this and travel on it. You can enter the country, work here and return to live here. On a return, you activate your old tax number and change the status to resident. 

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Do I need professional services for a financial emigration? 

It amazes us how many people try this process on their own, with little experience, or turn to their parents who remain in South Africa. To financially emigrate, you need a tax clearance. To get this you need to ensure in the very least that your income taxes are up to date and ALL of your assets are ready to be subjected to a ‘deemed sale’ and capital gains tax. Unless you feel you know the system and are ready to deal with the various stakeholders, or you feel that there is no tax risk (not even penalties and interest from SARS), we strongly advise the use of chartered accountants who are: 

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• recognised tax practitioners 

• can assist with tax planning 

• have strong links to banks in South Africa, and 

• have experience in this field. 

 

Obtaining all the correct documentation can also be particularly tricky if you have already left the country, so having an expert on the ground back in South Africa can be greatly helpful. 

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Do I need a tax clearance certificate from SARS for emigration purposes?

A tax clearance certificate is a document issued by SARS to confirm that all your tax affairs are in order. The number of years you’ve spent outside of South Africa will determine whether or not you need to get tax clearance from SARS before you can financially emigrate. 

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How long does the process of emigration take? 

We are at the mercy of SARS, the banks and assurers, and they all have their own timeframe. In our experience, although an application can be completed in approximately 12 weeks, the process can take as long as several months to complete. 

A lot depends on your situation and standing with the relevant parties involved in your emigration.

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What are the costs of emigration? 

Each case is different. 

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Some individuals have bank accounts open in South Africa, whereas others do not. The banks charge a fee, which is a disbursement to clients (with full transparency) 

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Some have retirement products. 

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Some have businesses or dealings with family trusts. 

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Once we assess the work required to action a successful emigration, we can provide a quote. 

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Our fees are highly competitive and we encourage clients to compare our service offering with other business in the financial emigration market.