A recent article in Business Tech on 15 September 2021 indicated a mass exodus by key earners as more of the country’s skilled professionals look overseas for greener pastures https://businesstech.co.za/news/wealth/521406/south-africas-wealthy-taxpayers-are-leaving-in-their-thousands-ceo/.
Tax compliance profile
With large movements of people, one wonders how many of these emigrants have planned their tax exit from the country? A chat to people in the tax emigration industry and you will soon discover that they are inundated with calls daily.
Each emigration is unique, in that some leave the country completely, others keep retirement products, others maintain property and businesses, others have links to trusts and the list goes on. There are many possible scenarios and our tax emigration service takes all of those into account.
Tax emigration from South Africa
To put all in context, we are currently experiencing:
- A changing emigration process and rules;
- Changing foreign exchange controls;
- Higher interests and more involvement from SARS;
- A diminishing bank role;
- Slow processes at SARS, Banks, Mutuals and the Reserve Bank
Not to mention the alliance of countries and a concerted effort to share information…as we open up with CRS and FATCA reporting and disclosure. This brings about a sharing of information and I suspect that the offerings from first world countries with be more forthcoming and accurate than our records in South Africa. Imagine moving to Australia and being deported back, because of tax disputes…..
Then, life is challenging in the service industry – with SARS being no different to other service providers with all the same challenges brought about in large part by the long enduring pandemic.
There are many reasons to fix up ones SARS Tax profile and tax emigrate.
So where to start?
SARS have documented their emigration process on their website.
https://www.sars.gov.za/individuals/manage-your-tax-compliance-status/supporting-documents-for-emigration/. Tax knowledge and planning are highly advisable.
Any person considering clearing their affairs with SARS and tax emigrating – needs to know that Taxes arising from an emigration event – take the form of CGT which is raised at 18% from a ‘deemed sale’ of your worldwide assets. That’s potentially 1/5th of one’s wealth. Without hesitation, a South African considering emigrating should approach tax specialists to assist.
We specialise in Tax emigration, have vast experience, have good contacts and help those emigrating. Challenges are many and your taxes on emigration should be dealt with by professionals.
For queries, please use this website or email me on fred@acsplus.co.za .
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