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Steps to financial emigration


JJDLmoving

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Hi all you financial brains :)

 

I need to please clarify the steps needed to financially emigrate. Just some background info: 

  • Wife and I are still employed and will stop working in about Nov 18. 
  • We will be relocating shortly thereafter to Melbourne

Steps?:

  1. Get Tax clearance certificated for both wife and I (how long are these valid)?
  2. Move to OZ and start living life there
  3. Submit final SARS Tax returns in July 19
  4. Receive refunds into existing FNB accounts
  5. Close FNB account
  6. Submit SARS financial emigration documents (can this be done from OZ? Do i need to give power of attorney to anyone to do this for me on the ground in SA?)
  7. Apply for RA's and Provident funds to be transferred to AUS bank account

 

Have i missed anything? Any tips or pointers would be very highly appreciated. 

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I am sure someone with more knowledge will respond to your list of steps but you do not need to rush a financial immigration to get money out and transferred. It is only RA's that require you to close up shop and financially immigrate. I have never financially immigrated but have moved funds to Oz from pension and provident funds plus other savings including funds from the sale of a house. Don't over-complicate your move by  doing financial immigration first, if you can avoid it.  

 

Just my 2 cents but it is up to you ofcourse as your situation may be unique

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53 minutes ago, TakeItOnTheChin said:

I am sure someone with more knowledge will respond to your list of steps but you do not need to rush a financial immigration to get money out and transferred. It is only RA's that require you to close up shop and financially immigrate. I have never financially immigrated but have moved funds to Oz from pension and provident funds plus other savings including funds from the sale of a house. Don't over-complicate your move by  doing financial immigration first, if you can avoid it.  

 

Just my 2 cents but it is up to you ofcourse as your situation may be unique

Absolutely correct

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1 hour ago, JJDLmoving said:

Hi all you financial brains :)

 

I need to please clarify the steps needed to financially emigrate. Just some background info: 

  • Wife and I are still employed and will stop working in about Nov 18. 
  • We will be relocating shortly thereafter to Melbourne
    • HVZ: NB, you may not have tax emigrated from SA at this stage - should you be on a work permit only, you remain SA tax resident. If you on a PR and your habitual home and centre of vital interest went from SA to Oz, you tax emigrate on the departure day

Steps?:

  1. Make sure you have an ATO tax number the minute you have a PR or workpermit
    • You will soon need a TRC or tax residency certificate issued by ATO and they will not issue before first tax filing
    • Consider filing June 2018 as nil or show the income and assets already in Oz 
  2. Get Tax clearance certificated for both wife and I (how long are these valid)?
    • Normally valid for 12 months but not required until the MP336(b) was accepted and date stamped by the bankers
    • There is two types, one is for the R10m FIA and the other is a tax emigration clearance
  3. Move to OZ and start living life there
    • Update bankers for FICA and CRS
    • You now entitled to remit any SA pensions funds abroad, avail to the balance of your SDA R1m and FIA R10m subject to FIA tax clearance
  4. Submit final SARS Tax returns in July 19
  5. Receive refunds into existing FNB accounts
  6. Close FNB account
    • Formal emigration if done through FNB will convert from normal to blocked account
    • Until you have formally emigrated, try and remain SA banked until all your funds our outside SA. 
  7. Submit SARS financial emigration documents (can this be done from OZ? Do i need to give power of attorney to anyone to do this for me on the ground in SA?)
    • There is NO such a thing. Formal or financial emigration is SARB process and it commence with a MP336(b) which you can file before you leave
    • It can be done from abroad and you need not give PoA to anyone. MP336(b) must be signed by yourself and sent to bankers in SA, therefore file MP336(b) or Metal Plate Emigration form to bankers and ask them to stamp based on your departing air ticket and the PR letter. Can't be done on work permit 
    • NEXT Step, apply on efile for tax emigration clearance and submit MP336(b) to SARS together with all other info
    • You need  not wait for Feb 2019 tax filing - you can do as soon as you have an air ticket and ready to leave
    • Once emigration tax clearance was issued, submit same to your bankers and they will complete the financial emigration and issue the necessary emigration reference number. Only now can you cash out RA's
  8. Apply for RA's and Provident funds to be transferred to AUS bank account
    • Try cash out Prov Funds now, you need not formally emigrate to cash out pension, provident and their preservation funds
    • Try and move all SA retirement funds to Oz within 6 months of arrival for purposes of Oz tax exemption and balloon payments to Super (SSA) 

 

Have i missed anything? Any tips or pointers would be very highly appreciated. 

You need not formally emigrate - only consider this if you have RA's or expect a huge inheritance

FIA is not capped at R10m, it is a glass ceiling and can be increased on request 

In addition to FIA R10m and SDA R1m, is all monthly and annual retirement funds, cost of your Oz home and amounts in excess of R10m specifically approved 

Welcome to be in contact

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50 minutes ago, JJDLmoving said:

Thanks @TakeItOnTheChin

 

That is sound advise. I thought you needed to FE to get ALL funds out. Interesting! 

Only RA and large inheritances in excess of R10m or R20m if you are married 

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