Formal Emigration from South Africa
Many South Africans have emigrated without formal emigration from South Africa.
Formal emigration is the process to close your financial affairs when leaving South Africa immigrating to another country-and change your status-for exchange control purposes from resident to non-resident. Emigration does not affect your citizenship or the right to retain your South African passport. The may be many advantages of arranging this formal emigration:
We can assist in arranging all aspects of formal emigration.
To formally emigrate, if there are assets in South Africa, it is necessary to get a tax clearance and to submit a tax return at date of emigration which would tax income until date of immigration. On the date of immigration all assets other than fixed property would be valued and any capital gains would be taxed as an effective exit tax.
If there is income on fixed properly, they would continue to be taxed in South Africa after immigration. Capital gains would be taxed when realised. All assets held in South Africa after immigration would be held on the bank handling the emigration and held in a blocked account.
The amount of capital that can be taken overseas on emigration is as follows:
If I emigrate from South Africa, do I have to relinquish my South African citizenship?
No. Emigrating from South Africa formalises your exit from South Africa for exchange control purposes. It does not mean that you have to relinquish your South African citizenship. You can retain your South African passport.
I have been living abroad for a number of years, how do I formalise my emigration?
In terms of exchange control policy, private individuals (natural persons) who reside permanently in a country outside the Common Monetary Area are required to formalise their emigration by completing a Form MP336(b).
Your emigration should be formalised through a local commercial bank of your choice in South Africa as follows:
Can I transfer the proceeds from the insurance policy directly to my overseas bank account?
Yes. The proceeds from insurance policies may be transferred directly to the emigrant abroad where the emigrant has no bank account in South Africa, provided the person’s emigration has been formalised and that the foreign capital allowance limit will not be exceeded.
South African Retirement Annuities?
Retirement annuities in South Africa can transfer the full capital value of your South African RA`s offshore before age 55
Voluntary Disclosure Programs
For South African tax payers who have not previously formalized their foreign assets, it is necessary to formalize their foreign funds with the South African Revenue Bank.
The South African Reserve Bank Regularization Program
Taxation VDP (Voluntary Disclosure Program)
In terms of this program a taxpayer would need to disclose and thus regulate their tax situation. Were taxes were not paid since 2001 on foreign taxes the income would be taxed without penalties but interest would be charged on late payment of taxes.
For more information you can contact:
Director: IAPA Johannesburg
Tel: 011 887 8593
Cell: 082 821 3449