Formal emigration - has anyone done it on their own?

[bbop]

Do it now and get it over and done with. Once you are in the system, it makes things easier. Our RA just cashed out recently but we still have our property, when we do sell, most of the documentation has basically been taken of already. The rules can change very quick with little notice, you don't want to get caught with your pants down!

[HadEnoughofJuju]

I have a question for CashKows or Exchange4Free or anyone else in the industry willing to take a stab at answering it.

I contacted Sanlam last week and asked what the process of cashing out an RA for emigration purposes would be. I got an email today which had several attachments in it including the SARB application for foreign investment, SARS tax clearance application and a mandate for cancelling and payout of the policy.

My question regarding this is why do Sanlam seem to think this is possible without going through the formal emigration process if everyone I have spoken to so far at the above mentioned companies tell me that there is absolutely no way this can be done.

I was just wondering about this and I have asked Sanlam several questions just to clarify that this is in fact legal and possible before we leave the country. I must also add that I find it extremely difficult to believe that Sanlam or any of the other major South African finance company would do anything illegal or in contravention of the foreign exchange control act.

[bbop]

That just sounds like the documenation they sent to us for the final cashing out process. There are loads of other forms and steps still inbetween.

Take a look at this link, you definetly need to formally emigrate if you want your RA to cash out.

http://www.10x.co.za/blog/non-residents-how-to-claim-your-south-african-ra-fund/

[Lavender]

Use Cashkow's, they are reliable and trustworthy!

[QR-101]

Did it myself and the good news I received my money on Friday

Now the only thing I need to do is sell my block of land

[Hugo2]

Thanx for the input, what then transpires is that without RA's you can DIY easily. I raise all the DIY people a challenge ...give me the necessary consent and I will show you at least 1/3 to 1/2 of the DIY emigrants left money behind, not knowing about it. I will post an honest result. I will give each person a code which only him/her and I will know and everyone can then ensure the outcome of his / her case is honestly reported.

Go back to our web page and see what we specialize in - doing a formal emigration with cash on hand and a property only is easy as the CGT is deferred until property sold and cash has no tax consequences in SA. Add unit trusts, family trusts and RA's and the story is little different and I respectfully submit we are comparing apples and pears.

For a vanilla emigration we will charge more than the R3000 the bank charges but should your or a family member of a friend be able to do the compliance and completion for free, the R3000 fee is reasonable.

For trust beneficiaries, legatees in SA deceased estate, shares / unit trust etc I promise you R3000 is not the final cost!

But back to my challenge ...email me on taxinfo@cashkows.com and I will send you the consent to sign and I will revert back on the SA funds you may or may not have left behind.

I will do the free check on a maximum of 5 (five) first respondents but the condition is they must be able to present me with the SARB emigration reference number, the blocked account detail (not account number, just the banks name), the consent referred to above and a tax emigration clearance certificate. I will then do the analysis free of charge for said 5 people.

Deal on?

[MiniDachsie]

Hi Everyone

Just wondering, those of you who did this on your own, if you could give me some advice? I don't have any assets in SA, no annuities, pensions, etc. Just a bank account with a little bit of money (not worth sending over!). I don't really want to pay R9000, or as cashkows quoted me R15000 earlier this year! I think this should be an easy process. I'm planning a trip to SA later this year, so would like to get everything I need before I go. Can anyone advise on what I need (forms, etc) in my case, and what should I get from Australia? I'm a dual citizen of Aus and SA.

Thanks!

L

[Heymanse]

I guess my first question to you would be if you formally emigrated from South Africa? If you had and this money is in a blocked Rand account then it's as easy as emailing your bank's exchange control officer to have the funds transferred to your Aussie bank account and close the South African bank account.

[MiniDachsie]

Hi Heymanse

Was the above comment a reply to my question? My question is about formal emigration - how to do this if you have nothing in SA apart from a bank account with very little money in it (won't be sending it over). I want to do it on my own, but can't find anything on the internet that gives you guidance as to the process. Perhaps I haven't searched long enough!

So, question is again: Where do I find the steps to formally emigrate? I don't think it's worth me paying anyone (unless they aren't going to charge much) since I don't have any assets, annuities, pension, NOTHING, in SA.

Thanks

L

[MiniDachsie]

After a search on the SARB website, I found the following. Probably sounds easier than it might be:

"Your emigration should be formalised through a local bank of your choice as follows: (i) Complete a Form M.P.336b – Emigration: Application for foreign capital allowance. The form is available from the South African Reserve Bank website www.reservebank.co.za by following the links: (ii) Publications and Notices > Forms > Financial Surveillance and exchange controls > Form MP336b. (iii) Obtain an Emigration Tax Clearance Certificate (IT21 a ) from the South African Revenue Service (SARS). The Tax Clearance Certificate is based on the Form M.P.336b, therefore, you will also have to provide SARS with a certified copy of the completed Form M.P.336b. (iv) If you have resided permanently outside South Africa for a period longer than five years and you do not possess any assets other than an inheritance or insurance policies, it would not be necessary to obtain a Tax Clearance Certificate. (v) Submit the Form M.P.336b and the Tax Clearance Certificate, if applicable, to your bankers. You will also have to submit any other documentation as required on the Form M.P.336b, which includes a copy of the permanent residence permit, if you have been granted permanent residence abroad."

Edited June 19, 2013 by MiniDachsie

[RichardH]

After a search on the SARB website, I found the following. Probably sounds easier than it might be:

"Your emigration should be formalised through a local bank of your choice as follows: (i) Complete a Form M.P.336b – Emigration: Application for foreign capital allowance. The form is available from the South African Reserve Bank website www.reservebank.co.za by following the links: (ii) Publications and Notices > Forms > Financial Surveillance and exchange controls > Form MP336b. (iii) Obtain an Emigration Tax Clearance Certificate (IT21 a ) from the South African Revenue Service (SARS). The Tax Clearance Certificate is based on the Form M.P.336b, therefore, you will also have to provide SARS with a certified copy of the completed Form M.P.336b. (iv) If you have resided permanently outside South Africa for a period longer than five years and you do not possess any assets other than an inheritance or insurance policies, it would not be necessary to obtain a Tax Clearance Certificate. (v) Submit the Form M.P.336b and the Tax Clearance Certificate, if applicable, to your bankers. You will also have to submit any other documentation as required on the Form M.P.336b, which includes a copy of the permanent residence permit, if you have been granted permanent residence abroad."

As the form says get hold of the foreign exchange department at the bank where your SA account is held. They will help you through the process. They get you to fill in the form MP336 along with all the accompanying documents. You are not going to be allowed to keep your SA account as a normal account, it will have to become a non resident account, they will sort that out.

Then once you have that the bank applies to the reserve bank and then the process is complete. The net result will be that you have become formally emigrated and your SA bank account will be a non resident account. If you can get away with no tax clearance then the process will be super simple.

Please keep us posted on how you go with this?

What bank in SA do you have your account with?

Note: This is info for as you say, you have no RAs nothing at all and I assume that you have been outside SA for more than 5 years.

[Erik]

lots of interesting info, thanks

[MiniDachsie]

RichardH, yes, I've been out of Australia since January 2008. Once I do it, I will let everyone know how easy it was. My bank is ABSA.

[Stepchook]

RichardH, yes, I've been out of Australia since January 2008. Once I do it, I will let everyone know how easy it was. My bank is ABSA.

Out of Australia? Don't you mean out of South Africa?

[MiniDachsie]

Out of Australia? Don't you mean out of South Africa?

Oops, yes, I mean SA.