SA tax residency

[Bob123]

Became a PR in 2016 and a citizen in 2021.  In Feb 2021 I officially financially emigrated and the exit tax on my 2016 world wide assets worked out that I owe SARS nothing.  However now I want to cash out my SA company pension which is ~R8 million and it seems I cannot use the SARB financial emigration document to  transfer the money internationally.  I always assumed that having financially emigrated SARS views me as a non resident

 

1. How do I apply for a non residency letter from SARS?  Do I merely change my status on the e-filing site, submit the supporting documents  and SARS mails me the non residency letter?

2. Once I have the SARS letter, can I then cash out and transfer the pension using this letter

 

I don't know why SARS makes it so complicated.  I went through the financial emigration process, not sure why I have to repeat the process again.  

 

 

   

[Hugo2]

17 minutes ago, Bob123 said:

Became a PR in 2016 and a citizen in 2021.  In Feb 2021 I officially financially emigrated and the exit tax on my 2016 world wide assets worked out that I owe SARS nothing.  However now I want to cash out my SA company pension which is ~R8 million and it seems I cannot use the SARB financial emigration document to  transfer the money internationally.  I always assumed that having financially emigrated SARS views me as a non resident

 

1. How do I apply for a non residency letter from SARS?  Do I merely change my status on the e-filing site, submit the supporting documents  and SARS mails me the non residency letter?

2. Once I have the SARS letter, can I then cash out and transfer the pension using this letter

 

I don't know why SARS makes it so complicated.  I went through the financial emigration process, not sure why I have to repeat the process again.  

 

 

   

Good morning,  the option to encash retirement funds based on FE, terminated on 28 Feb 2022. Only on 24 April did SARS introduce the new process, now called AIT (approved international transfer). It is indeed necessary to first re-confirm your tax emigration status and in answer to 1. RAV01 - go to home, then open maintain sars details and update the word individual to foreign individual, non asylum seeker. Now click done and submit. Go back into the system middle block tax types and last dark blue line is Liability and change to non-resident. Your old FE date should pop up or capture it and click done and submit. SARS will now issue the request for supporting documnts. Submit and obtain the letter. 2. No, once you have letter go to tax status and request and AIT (replaced the both the FIA and TEC or tax emigration clearance. Headsup: ask the fund if you need to submit evidence that you have been out 3 or more tax years. Some preservation funds and ALL retirement annuity funds, do ask for this

GEN-ELEC-08-G01-Guide-to-the-Tax-Compliance-Status-functionality-on-eFiling-External-Guide.pdf

[Hugo2]

`SARS press relase on 23 April 2023, effective 24 April 2023

 

Enhancements to the current Tax Compliance Status (TCS) system due to new opportunities and legislative changes include, but are not limited to:

• The definition of what it means to be tax compliant, the business process and usability of the existing TCS system to drive continuous compliance, strengthen the compliance result and provide a superior customer experience.
• The discontinuation of “Tender” as an option for Tax Compliance Status request.
• Strengthening legislative alignment with the SARB exchange control changes as it pertains to Emigration, with the introduction of a new dynamic application called “Approval International Transfer (AIT)”, to replace the existing “Emigration” and “Foreign Investment Allowance (FIA)” application types.

The Tax Compliance Request form (TCR01) has been amended to align to the required changes.

Updated guides:

• GEN-ELEC-08-G01 – Guide to the Tax Compliance Status functionality on eFiling – External Guide
• IT-AE-49-G01 – Services offered by SARS via the SARS MobiApp – External Guide