FINANCIAL EMIGRATION AND BUSINESS COMPLIANCE

COULD YOUR COMPANY HOLD YOU BACK?

Many of those looking to financially emigrate are often hit by the nasty surprise of their historic or current company non-compliance which acts as a hindrance to their emigration process.

For expats looking to formalise their tax non-residency, taking into consideration the implications of having a business is key. While others may argue that their company is not operational or has not made “profit” in many years, it is vital to note that even non-active companies need to file a zero return or they fall in the category of non-compliant.

We have a multidisciplinary team of Legal Professionals, Chartered Accountant(SA) and Expatriate Tax Specialist who are extremely well versed in assisting individuals with their financial emigration process. This holistic approach ensures that all grounds are covered in noting you as a non-resident for tax purposes.

MORE INFORMATION

Financial Emigration is the formal process to note oneself as a non-resident for tax and exchange control purposes in South Africa. The process ensures that one has met all requirements under the Income Tax Act No.58 of 1962 to ensure that one is a non-resident in accordance with South Africa’s tax residency tests and also ensures compliance with all exchange control regulations for non-residency.

This process allows you to:

  • Discharge your onus of proof that you have ceased to be a tax resident of South Africa;

  • remove any ambiguity from a compliance perspective, and

  • proves your subjective intention to remain abroad in terms of our case law when dealing with SARS.

Contrary to misinformation, the financial emigration process does not require the giving up of citizenship, handing in of passport, selling of property or cancelling of bonds and financial products.

“Therefore, if one financially emigrates (taking into consideration the tax residency tests) that would then indicate that the taxpayer ceased to be a tax resident.”

SARS, Foreign Employment Income Team, 18 October 2019

MEET THE TEAM


Lelanie Murphy
Director

Melani du Toit - Chartered Accountant
Melani du Toit
Senior Accountant

Claudia Aires - Head of Financial Emigration
Claudia Aires Apicella
Head of Financial Emigration

Jonty Leon
Jonty Leon
Legal Manager

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