As of 1 March 2021, the SARB component of the financial emigration process fell away and was replaced with purely a SARS component.
This meant that tax residents would be subject to tax on worldwide income (excluding certain exemptions or exclusions) and non-residents would be subject to tax on income from a source within South Africa.
You can gain access to your South African retirement funds before maturity if non-resident status can be proven for 3 consecutive years.
Steps Involved In Tax Emigration For South Africans
- After you’ve registered on our website, we’ll forward you a Consent form to sign. This Consent form will authorise Rand Rescue to obtain your policy values, confirm your policy rules and quote you our fee to complete your Tax Emigration.
- Once we’ve received your go ahead to proceed with your application, we will send you an Emigration Questionnaire to enable us to complete all the necessary forms for you to sign and return with a list of supporting documents required by the banks, SARS and the assurers.
- When we’ve received the completed signed forms and supporting documents from you, we can start to process your application.
- We submit your application to the bank to open your non-resident (emigration) bank account.
- We inform SARS of the change in tax residency status.
- We will assist you with any outstanding tax affairs to ensure you are tax compliant.
- We apply for your Emigration Tax Clearance Certificate (ETCC).
- We lodge your Emigration Tax Clearance Certificate (ETCC) with the bank.
- We liaise and lodge your completed surrender forms with the assurers (Liberty, Old Mutual, etc).
- The assurers will apply for a Tax Directive with SARS.
- Once the directive has been issued, the assurers will pay the funds into your non-resident (emigration) bank account.
The Revenue Service
Your tax account must be up-to-date before you can apply for Emigration Tax Clearance (ETCC). This means no outstanding returns or monies owing to SARS.
The change in tax residency will impact the basis on which you will be subject to tax in South Africa and how your returns will be assessed going forward. The year in which you have ceased to be a tax resident may also result in a possible deemed capital gains tax disposal depending on the type of assets you held and where they are located at the time. Once a person has ceased to be a tax resident in South Africa, such person is no longer taxed in South Africa on his or her worldwide income, but only on South African sourced income.
It can take up to 6 months to complete your tax emigration from the date we receive your documentation at our South African processing office.
Documents required for your emigration application:
- Assets & Liabilities Statement for the last 3 years
- SARS Declaration to ceased tax residency
- A certificate of tax residence from the foreign revenue authority
- Bank account opening forms
- Surrender Forms