Escape the South African tax net 

Why you need a financial emigration strategy

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Are you a South African taxpayer living abroad? If you have not formally changed your tax status to non-resident with SARS, you are still trapped in the SA tax net. 

Emigration alone is not sufficient to cease being a South African tax resident. You need to make a detailed application to SARS justifying why you should now be considered non-resident for tax purposes. 

 

The cost of inaction

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Without SARS approval of your non-resident tax status, you are subject to South African tax on your worldwide income and your worldwide assets are subject to South African estate duty when you die.

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Avoid penalties. Protect your wealth.

If you live outside of SA, formally changing your tax status to nonresident is crucial to:

• Avoid double taxation on your current income

• Prevent complex and costly estate issues

• Ensure you do not face penalties and interest for noncompliance
   

Timing is everything

Your South African tax residency status can also impact the tax you need to pay on selling your South African assets or cashing out your South African retirement savings both in South Africa and your new country of residence.  There are also exchange control rules to consider if you want to transfer your wealth abroad. 

These are complex regulatory and administrative issues, which requires understanding the tax laws of multiple jurisdictions as well as the global tax architecture for cross border activities. 

Our specialist international tax team takes the stress out of financial emigration. Whether you are just considering leaving South Africa or have been gone for many years we can help you optimally manage your South African tax affairs.