Financial Emigration when you're already in Australia

[Lynnie]

Hi Everyone,

 

I have read all the comments and posts regarding financial emigration, and everyone's situation is unique.

 

We have been in Australia for more than 8 years now and have been citizens for the past 4 years. I only have 1 RA still left in SA and closed my Fnb account 8 years ago. My husband still has an Fnb account in SA and he also has 1 RA and some shares.

 

We have investigated various companies to use for the financial emigration and was shocked by how expensive it is!! The combined value of what we will be taking out is less than R100 000.00, so we can't justify

R40 000.00 to pay to a company for financial emigration.

 

So we have decided to do the financial emigration ourselves. Is there any one out there how can please give me step by step guidance on how to do this ourselves?

 

I have read that because we have been out of SA for more than 5 years, we do not need to apply for tax clearance - is this true?

 

I have the steps as follows:

 

1. Open a blocked account and report the formal emigration status to SARB. Do we open these accounts through FNB? Is this then an authorised dealer?

2. Obtain emigration tax clearance from SARS. Even though we have been out of SA for more than 5 years?

3. Surrender policies and request for the funds to be transferred into the blocked account. Does this include the RA's and can we do this directly with Liberty/Sanlam ourselves?

4.Transfer all funds in the blocked account to our Australian bank account. Is this something that the bank does where the blocked account is held?

 

What is the first step to do and do I have all the steps needed in the above?

 

Any help/advice/guidance/assistance is appreciated 😁

 

Thank you ☺️

[Hugo2]

Hia Lynnie

 

you have not been offered the belated emigration option for persons having left +5 years ago?

[Lynnie]

Hi Hugo,

 

Thank you for your reply.

 

How does that work and who offers it?

 

Thank you

[XXXXX]

You've pretty much got it right.  

1.  The blocked account can be opened at any authorized dealer (which are basically commercial banks like FNB). (and this is the first step)

2.  Tax clearance may not be necessary (belated immigration).  See FAQ here for details. https://www.resbank.co.za/RegulationAndSupervision/FinancialSurveillanceAndExchangeControl/FAQs/Pages/Emigrants.aspx

 

Have a look at the link above - it gives you details on the process.  Then touch base with all the mainline banks (at the Financial emigration department - google for email addresses)  and ask for a quote.  There emails in response will pretty much detail everything required and let you know on pricing.

 

Let me know if you have any further questions.  I'm currently going through the process myself (to access a RA).

 

[Hugo2]

On 4/25/2019 at 5:44 AM, Lynnie said:

Hi Hugo,

 

Thank you for your reply.

 

How does that work and who offers it?

 

Thank you

There is several service providers and can be done yourself or in conjunction with someone welcome to reach out to wegkaner@iafrica.com

[Hugo2]

On 4/27/2019 at 10:39 AM, XXXXX said:

You've pretty much got it right.  

1.  The blocked account can be opened at any authorized dealer (which are basically commercial banks like FNB). (and this is the first step)

2.  Tax clearance may not be necessary (belated immigration).  See FAQ here for details. https://www.resbank.co.za/RegulationAndSupervision/FinancialSurveillanceAndExchangeControl/FAQs/Pages/Emigrants.aspx

 

Have a look at the link above - it gives you details on the process.  Then touch base with all the mainline banks (at the Financial emigration department - google for email addresses)  and ask for a quote.  There emails in response will pretty much detail everything required and let you know on pricing.

 

Let me know if you have any further questions.  I'm currently going through the process myself (to access a RA).

 

If you do belated while having RA's you want to cash in, you on a collision cause! Do not use belated without tax Emigration clearance for anyone with RA

[XXXXX]

I'm not doing a belated immigration - but am genuinely interested in why it would be a concern?   Presumable failure to obtain a tax clearance would trigger red flags for when a tax directive is applied for?  

 

Edited July 3, 2019 by XXXXX
Correction

[Hugo2]

11 minutes ago, XXXXX said:

I'm not doing a belated immigration - but am genuinely interested in why it would be a concern?   Presumable failure to obtain a tax clearance would trigger red flags for when a tax directive is applied for?  

 

My apology from the way you answered it left me with the distinct idea you are undergoing the belated one as that is the steps you quoted. 

 

Reason why it does not work for RA is two prong as SARB will deny and SARS on encashment of the RA asks for 3 things being tax emigration clearance, tax residency certificate and tax directive. As Belated is without the TEC even SARS will give you uphill should you have managed to slip past SARB as belated despite having a RA in hand

[XXXXX]

5 minutes ago, Hugo2 said:

My apology from the way you answered it left me with the distinct idea you are undergoing the belated one as that is the steps you quoted. 

 

Reason why it does not work for RA is two prong as SARB will deny and SARS on encashment of the RA asks for 3 things being tax emigration clearance, tax residency certificate and tax directive. As Belated is without the TEC even SARS will give you uphill should you have managed to slip past SARB as belated despite having a RA in hand

Interesting.  But makes sense.  Thanks

Edited July 3, 2019 by XXXXX
Correction