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What are the benefits of Officially Emigrating?


Shampoo

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In my understanding, you can now have your pensions and RA's remitted to your overseas bank account directly without Officially Emigrating. All you would need is an International Certificate of Residency from your new country. SA has relaxed it's FX controls considerably lately so one can transfer money quite easily.

Officially Emigrating does not make you a Non Resident in SARS eyes. Only the Physical Presence Test does. So what are the benefits? I can give you a long list of disadvantages though.

I can now kick my but for Officially Emigrating.

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Benefits of emigrating.......bye bye South Africa. That's enough for me! :ilikeit: :ilikeit: :ilikeit:

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I can give you a long list of disadvantages (of Officially Emigrating) though.

So can you share some for those still in transition?

Edited by RYLC
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In my understanding, you can now have your pensions and RA's remitted to your overseas bank account directly without Officially Emigrating. All you would need is an International Certificate of Residency from your new country. SA has relaxed it's FX controls considerably lately so one can transfer money quite easily.

Hi, this is indeed a valid question but for RA held before commutation (before you took one-third or commence receiving retirement benefits) can not be encashed without formal emigration. The new relaxation is not for SA born nationals

Officially Emigrating does not make you a Non Resident in SARS eyes. Only the Physical Presence Test does. So what are the benefits? I can give you a long list of disadvantages though.

I can now kick my but for Officially Emigrating.

Correct, formal emigration does not change tax residency but can contribute to change tax residency where centre of vital is the driver. Where I do not agree is that physical presence test changes tax residency, Please note for SA/Australia the physical presence test is not relevant. Why do you regret the formal emigration? The fact is it may not be required but having done it, should not be that negative

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Hugo - just to clarify... there is no way one can get anything out of your RA unless you formally immigrate?

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If you formally emigrate, it is a little known fact that you can apply to be deregistered as a taxpayer with the much feared/hated SARS. Guess what, it is NOWHERE on their website on in any of their literature....oh, and if yure up to date, and youre out of SA for more than 183 days, you can also follow this little rabbit hole. As far as I am concerned that is sneaky and devious to say the least.

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Hey Shampoo

We also have that choice coming up, please share the disadvantages with us?

At the moment i don't see any and a big benefit will be Australian assistance if you run into trouble while in RSA.

You get a 3 month visa off the plane for a visit so no drama's there

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The disadvantages are for my situation only and may not be applicable to others here. There are many so I cannot put it all in 1 post as it gets too long.

My income is sourced in SA from investments on the JSE.

My brokerage account has been blocked so I cannot do online transactions. I have now to email my broker to do my transactions. Hopefully he will be at work and not on leave. If I was a trader then this will be disastrous.

FNB has blocked my account so now I have to email them to open it every time I transfer money into it from my brokerage account.

If FNB does not respond quick enough, then the payment gets bounced back. I have to keep monitoring both for days on end.

Had I just ducked, I could still be using my FNB card to swipe or to make cash withdrawals.

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Ah, ok

Yes i have hear that dealing financially with RSA when you are no longer a citizen can be painful, wont be relevant to us though,

We will have removed everything of value and setup a standing exchange order with people in RSA where required so can send them money in a day or 2 if we need directly from Auz.

Edited by Nev
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Now as I was saying. FNB sent my broker a date of my emigration that is 3 months incorrect. My broker then moved my account to a Blocked account and registered them as "sold" and now my IT3b will show a CGT as exit tax which is incorrect.

Just when I thought it cannot get worse, it did.

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Going back to the original topic, what are the benefits and disadvantages of formal/official emigration?

We have been out of RSA for almost 2 years, we completed SARS tax the year following our departure and have received our tax return/refund. We no longer have any assets or income in RSA. So now what? Do we have to tell SARS this, or will they know when they do not received IT3B and IRP5's?

I have also heard what Surferman says about applying to de-register as a tax payer and also cannot find this on their website. So how is this done? I have emailed SARS, but they stated that it may take up to 21 days to respond.

I am just concerned about what happens at the next tax filing period, and what I should or should not be doing.

Any assistance would be appreciated. Thanks

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I would also love to know how to de-register with SARS. I do have a Zuma-ike giggle :whome: submitting nil returns though..

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I think you would need an International Certificate of Residency from your tax office and this must be sent to SARS.

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  • 3 weeks later...

Hey everyone.

Thanks for the info so far, but still feel unsure which is the better path to go????

Emigrate or just go on a looooong holiday??

Is it true that if you dont emigrate they could freeze your account and stop you from transferring funds to your own account in Oz??

Please give us all more info and advise, asking the bank is only a waste of time and patience.

Thanks

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@Martin. If you have no income from SA or do not foresee any in future, then just duck. If you do just duck and get money from SA you can use your bank card for payments and withdrawals for 3 years max until your card expires. You then cannot renew it.

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I think you would need an International Certificate of Residency from your tax office and this must be sent to SARS.

I think it is just easier to submit nil returns until they give up. :jester:

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