As we progress through October, it’s essential to stay informed about the latest developments affecting tax emigration and the clearance process. Below is a concise overview of pertinent updates and actions you should consider.

Tax Emigration – Important Considerations

Informing SARS of Ceased Tax Residency: If you have ceased to be a tax resident of South Africa, it’s crucial to notify SARS using the Registration, Amendments and Verification (RAV01) form. This form allows you to update your tax residency status and is available on the SARS eFiling platform.

Required Documentation: When submitting the RAV01 form, ensure you provide comprehensive supporting documents. These include:

  • A signed declaration indicating the basis for ceasing tax residency.
  • A letter of motivation detailing the facts and circumstances.
  • A copy of your passport or travel diary, including all relevant entry and exit stamps.
  • Proof of permanent residence in the foreign country (if applicable).
  • A certificate of tax residence from the foreign revenue authority or a letter indicating your tax residency status.
  • Details of any property, business interests, family ties, or social connections remaining in South Africa.

Deemed Capital Gains Tax Disposal: Upon ceasing tax residency, South African tax law treats this as a deemed disposal of your worldwide assets, excluding immovable property situated in South Africa. This may have implications for your capital gains tax obligations.

Recommended Actions

  • For Clients Considering Tax Emigration:
    • Complete and submit the RAV01 form on SARS eFiling.
    • Gather and provide all required supporting documentation.
    • Consult with a tax professional to understand the implications of deemed capital gains tax disposal.

Tips to Stay Compliant & Minimise Risk

  • Keep detailed records of travel, residency, and foreign employment/investment income.
  • Maintain thorough documentation of assets both inside and outside South Africa.
  • Check your SARS eFiling tax residency status regularly.
  • Plan tax emigration or reinstatement processes well ahead to avoid delays or retrospective requests.

Quick Tip for October

If you’re considering tax emigration or planning to move funds abroad before year-end, start the process now. SARS clearance applications and foreign tax compliance checks can take several weeks, and early preparation ensures a smooth, hassle-free transfer.

How We Can Help

Should you require assistance with any of the above processes or have questions about your specific situation, please do not hesitate to contact us. Our team is here to provide expert guidance tailored to your needs.