Go RSA Posted May 5, 2015 Report Share Posted May 5, 2015 Greetings!I want to mature an old Sanlam Retirement Annuity into a monthly payment so I can send some Rands to my parents in South Africa.Will Sanlam be able to convert it into a monthly payment, or do I need to bring it out as a lump sum to Australia? Will I need to pay tax in South Africa on the monthly receipts? I have been out of the South Africa tax system for more than 20 years. I wonder if I would have to start submitting tax returns again??Any advice or suggestions welcome. Quote Link to comment Share on other sites More sharing options...
Hugo2 Posted May 5, 2015 Report Share Posted May 5, 2015 Hi Go RSAyou can have the monthly annuity paid to whomever you want but SARS will tax you. On application SARS will exempt (provided you can show you paid tax in Oz to ATO). This tax allocation to ATO will not stop you from giving the funds to your family. Spending / consumption does not change tax exposure. You can also encash one third and take that and monthly benefit from SA without formal emigration. You can also consider formal emigration and cash out 100% but that will also be taxed in SA and ATO will give you tax credit for SA taxes. Formal emigration and asking SARS to exempt you from SA tax, will result in you having to file for tax and or update your tax record. Do note on the monthly pension if the monthly income is less than say R5500 you should not face any SA tax. If you 65 or older the R5500 could be higher. Before you take a decision have a broker look at your porfolio and options. I can also help but do note I do not believe in a free consultation as I am not going to coerce you into formal emigration. I will advise you and you make the call and can do the formal emigration yourself or through whoever you wish to. Note I advise in terms of tax act and exchange control. I sell no annuities, etc. so you will need a broker, and if you wish I can intro you to the broker in the office, Wessel BothaSee www.bcbadvisory.com 1 Quote Link to comment Share on other sites More sharing options...
Go RSA Posted May 5, 2015 Author Report Share Posted May 5, 2015 Thanks very much for the info.I did emigrate about 25 years ago.The amount in the RA is about R 225,000.For this amount do you recommend I should get advice?When I start getting income from the RA, I intend to report it as part of my tax return in Australia. I wandered if there is also a requirment for me to report the income to the South African tax office? Quote Link to comment Share on other sites More sharing options...
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