Financial Emigration is the formal process to declare oneself as a non-resident for tax in South Africa. The process ensures that one has met all requirements under the Income Tax Act No.58 of 1962 to ensure that one is a non-resident in accordance with South Africa’s tax residency tests.
GENERAL QUESTIONS ON FINANCIAL EMIGRATION
IS IT POSSIBLE TO APPLY A DTA DURING THE CURRENT TAX FILING SEASON AND ONLY START THE FINANCIAL EMIGRATION PROCESS AT A LATER DATE WHEN I AM SURE OF MY INTENTION?
Yes, that is possible. However, it is important to seek professional assistance to ensure correct application of a DTA.
WHAT IS THE ESTIMATED COST TO FINANCIALLY EMIGRATE?
The cost would be dependent on your circumstances and can only be accurately quoted upon evaluation thereof. We offer a free initial consultation to determine your personal circumstances and qualify you and quote you accordingly.
IS THERE STILL MERIT FOR ME TO FINANCIALLY EMIGRATE RIGHT NOW?
There is a misconception that the concept of financial emigration no longer exists. However, this is incorrect as the financial emigration process has been amended to include only a SARS process as SARB has been phased out of the process. The choice of whether to Financially Emigrate is dependent on whether you have a permanent intention to remain outside of South Africa or not. Should you have this intention, then it is highly recommended that you consider Financially Emigrating.
IS FINANCIAL EMIGRATION VALID FOR 5 YEARS?
Financial Emigration has no expiration date as it is a once off declaration of ceasing your tax residency.
IS IT POSSIBLE TO BE A SHAREHOLDER OF A PRIVATE SOUTH AFRICAN BUSINESS AND HOLD A BUSINESS BANK ACCOUNT IF I FINANCIALLY EMIGRATE?
Yes, it is possible to be a shareholder of a private company and have a business account if you have financially emigrated.
IS IT POSSIBLE TO PURCHASE SHARES AND APPLY FOR PROPERTY LOANS ONCE YOU HAVE FINANCIALLY EMIGRATED?
Yes, this is possible.
DOES FINANCIAL EMIGRATION AFFECT YOUR ABILITY TO INVEST IN SA?
No, it does not. You are still able to make investments in South Africa as a non-resident.
HOW ARE YOU AFFECTED AS A TAXPAYER IF YOU OWN PROPERTY IN SOUTH AFRICA OR IF YOU FINANCIALLY EMIGRATE?
Both residents and non-residents can own property in South Africa. As a non-tax resident, you are still taxed on any income received from rentals as well as on any capital gain on the property upon disposal.