Tax Clearance and Financial Emigration - Please Help

[RDD]

Hi All

A bit of background:

My wife and I are looking to immigrate to Australia by the end of the year. We started the process in November 2014 (TOEFL Exam) and got invited to apply for the 189 Visa towards the end of January 2015. Application submitted a week later and Medicals and Police clearance submitted by 12 March 2015. We are both CA’s and in our late 20’s.

I would like to get my ducks in a row before we move and have prepared a timetable (typical accountant) as to when certain aspects of the process need to start to enable us to have fully ‘emigrated’ (Financial and Tax), sold up our assets, withdrawn our Pension/Provident/preservation funds, and transferred all our money to our Australian account, to allow for a seamless move over the Indian ocean, with as little tie ups in SA as possible (other than our family of course who we will definitely miss). The timetable is as follows:

Count Down Date Item to Address

6 months 28-Apr Should receive VISA from DIBP

5 months 25-May Start sorting out CV's - Get into Australian format

4 months 29-Jun Calm before the storm

16 weeks 06-Jul Complete tax returns and Apply for Tax Clearance Certificate

14 weeks 20-Jul Apply for financial emigration

12 weeks 03-Aug Start putting the house on the market (remembering it takes approx. 3 months to transfer)

Try set up interviews for new jobs for when we are in Aus for LSD

10 weeks 17-Aug Australian Trip - LSD Trip

Open up an Australian bank account while in Aus

8 weeks 31-Aug Continue job search

6 weeks 14-Sep Continue job search

Sell car on Auto trader

4 weeks 28-Sep Open up Aus bank account if not done so already - (Ali & Reece)

Cancel all debit orders, cancel insurance , cancel phone, ADSL, DSTV, golf and gym contracts (usually requires 30 days’ notice)

Give resignation for current job (at least 30 days’ notice)

2 Weeks 12-Oct Sell car - We buy cars (webuycars.co.za) - If not sold already

Pension and Provident fund withdrawals

Send personal items via UBAG (usually 5-7 days delivery)

1 Week 19-Oct Pack up all clothes, etc

Organise appointments to view rental apartments in first week in Aus.

1 Day before 24-Oct Check have all documentation, flight tickets, Forex, etc

I realise that majority of those on this forum have either immigrated already and have gone through this process, or are going through the same process and possibly have the same issues as me, so I’m hoping I could get some feedback and input with regards to my timetable and whether it is realistic, etc, and also hoping I could get some answers to my questions below.

With regards to tax returns and tax clearance certificate (bearing in mind it can take up to 6 months to finalise the formal emigration process):

1. Can I sell my home and cars subsequent to me obtaining the tax clearance certificate and/or financial emigration from SARB? (Bearing in mind my home is probably worth R1.7m (therefore within R2m CGT threshold), and both cars worth about R500k (within R4m allowance))?

Or will there be issues with regards to the total foreign allowance stated in the tax clearance certificate (i.e. will I have to get a new tax clearance certificate once I have sold my home and cars to state that these assets have been sold, or will the original tax clearance certificate cater for this as these will be disclosed as assets at their market value at that time?).

2. Can I obtain a tax clearance certificate in July 2015, if I am still going to be earning a salary until I resign in October2015?

3. I am a beneficiary to my father’s estate (father is alive and well). Will I only need to provide a certified copy of the Will for Tax Clearance?

With regards to financial Emigration with SARB:

1. Can submission be done in person, or does one have to go through a Bank/financial institution?

2. Is my understanding correct, that I will need confirmation of Formal/Financial Emigration from SARB before I can withdraw a Preservation Provident Fund / company provident fund (no prior withdrawals for either), and transfer these funds overseas through a blocked account?

3. Can this process be performed at any stage after receiving tax clearance certificate (within 12 month validity period of Tax clearance), or only once all my assets have been sold, etc?

I know it is quite a lengthy post, but I am trying to get as prepared as possible in a relatively tight time frame, so any advice would be greatly appreciated.

Thanks you for reading my post and I hope you have a good day/evening.

Edited March 25, 2015 by ReeceDavies

[Kimmykins]

pardon my ignorance but what is:

14 weeks 20-Jul Apply for financial emigration

[RDD]

Hi Kimmykins

Financial emigration meaning formal emigration through the SARB.

Different websites have called it either financial or formal, but in essence they are the same.

[greggle]

There are a number of important considerations regarding formal emigration that you should be aware of before deciding to go this route.

I would suggest that you chat to Tanya from FX Capital - she has a lot of knowledge in the area (she has enlightened me) and their company is apparently able to assist with the process if you do decide to proceed. We are also planning to use FX Capital to transfer our ZAR's to AUD's in Sept (and a number of other forumites have reportedly used them in the past).

[RDD]

Thanks for your response greggle.

I will definitely use your advice and contact FX Capital.

One quick additional question to the Forumites (if allowed): As a rule of thumb, what is the general cost for a bank to provide the service to complete the Formal Emigration process for a married couple?

[RDD]

Thanks Tanya

I did send through an enquiry on the FX Capital website.

Do you think its possibe for me to follow my timeline as per original post?

[RDD]

Change to timeline.

Now to read:

7 Months 30-Mar VISA Granted by DIBP..........

[TanyaVDWesthuizen]

Thanks ReeceDavies, email received today, reply on its way.

[RDD]

Thanks Tanya.

Will do.

[Belindaf]

Hi Tanya

Just a question when getting Tax Clearance in South Africa for sending cash over 1M, how long is this process normally in days. Just trying to do a timeline.

Thanks so much

[Heymanse]

Applying for formal emigration at 14 weeks is a bit premature. We only started the process 3 weeks prior to departure. It was a quick 2 visits to the bank (foreign exchange branch of Standard bank in Braamfontein) and one to the Tax Office and all was done and dusted.

[greggle]

Hi Tanya

Just a question when getting Tax Clearance in South Africa for sending cash over 1M, how long is this process normally in days. Just trying to do a timeline.

Thanks so much

If I recall correctly, Tanya told us that it takes about 4-5 days.

[Belindaf]

Ah really wonder why the Company, Cashkow, is taking so long with ours each time.....?