The Tax Migration vs Financial Emigration

Overview

#Tax2020 is effective as of 1 March 2020. As of South African tax year 2021, expats will be facing an additional tax on their now tax-exempt foreign earned income.

Is this taxing of expats such a simple matter? And will affected parties merely roll over and accept the fact that SARS will now tax expat South Africans, despite them having no ties to South Africa?

Not only does the topic appear to be complex, it is also emotive. Financial emigration wars have broken out. Most wealth advisers, payroll administrators, and financial and investment advisors are now told their clients will have to formally or financially emigrate from South Africa.

This two-hour webinar will attempt to unpack the Act, as it was promulgated in December 2017 (effective as of 1 March 2020), and share some thoughts on the relevant 2019 foreign payroll and foreign remuneration tax policy changes (if any) to be announced by the new Minister of Finance.

Despite the new uncertainties, the webinar, hosted by Hugo van Zyl MTP(SA), will not only clarify the known issues, but will also ensure you know the difference between #Taxmigration and #financialemigration. You should also be able to guide your clients on the pros and cons of financial emigration.

Hugo will address the true, relevant issues of being tax resident or tax non-resident in terms of a tax treaty’s tie-breaker rules. What is the impact on tax emigration and the risk of availing to the UAE (Dubai) tax treaty benefit in the 2019 or 2020 tax year when the treaty has been in place for nearly three years? How will SARS deal with the overdue exit tax?

Hugo will also attempt to address some, if not all, of your questions on the ITA section 9HA exit (CGT) tax facing expats or who claim they should not be suffering the new capped R1 million foreign income exemption.

Make sure you are up to date. Although the implementation date is a year away, your clients expect you to have all the answers and provide possible solutions. Ensure the financial emigration service providers are not harvesting your clients because you ignored the latest hot topic being #Tax2020.

Course Content

• The difference between the various exempt foreign remuneration sources
• Foreign tax credits
• Tax residents
• Tax emigration – A consequence not an election?
• Financial emigration
  • The process
  • The pros from a tax and exchange control perspective
  • The cons – Why financial emigration should not be considered
• The alternative options
• The valuation of fringe benefits
• The SARS payroll deduction and credits
  • Foreign medical aid
  • Foreign retirement fund contributions
  • Foreign taxes paid at source
• Treasury and SARS interaction with the profession and payroll administrators
• Payroll administrators
  • Their challenges
  • Their questions
  • Your suggestions

Presenter

Hugo van Zyl
CA (SA) TEP MTP(SA) M.Com (Tax)

Hugo van Zyl is a chartered accountant passionately committed to clients facing tax challenges, be it the resident or migrated taxpayer, his trusted accountant, auditor, his tax lawyer or the trustee of the family office or trust. Since qualifying and joining SAICA as CA(SA), some 30 odd years ago, Hugo joined SAIT as Master Tax Practitioners and STEP as Trust and Estate Practitioner. Since 1994 his focus has been on migrant taxpayers, be it the returning exiles, those departing for Perth, London, New York, Tel Aviv or Buenos Aires and Los Angeles.

The Chris Hani murder saw his audit partner leave South Africa within six weeks, leaving him to acquire specialist knowledge on non-resident trust beneficiaries and exchange control issues acquired through trial and error. In 2003/2004 Hugo consulted on more than 1000 tax and exchange control amnesty applications, he lectured from Johannesburg to Wembley (UK) and in between in Springbok Bar, Encino, Los Angeles.

Hugo has lectured countrywide (on behalf of SARS. SAIT and SAICA) and later, on his own initiative in the USA and UK, at the time Treasury introduced VAT, RSC Levies, and CGT. What is today known as the SARS Guide on CGT, began as the treasured lecture material SARS confidentially made available to him in late 2000 and early 2001. In 2012 Hugo relocated from Gauteng to the Western Cape. Whilst living in the Western Cape he was employed by Cashkows (now FinGlobal) and FNB Fiduciary.

Since July 2018 he has been practising in his own name take great in interest in #Tax2020 and #Taxmigration. As of 1 March 2020 SA expats, not having undergone a #TaxMigration, need to consider the capped foreign earnings exemption of R1m. Financial Emigration, Tax Emigration or Come Back Home...Hugo is probably the most experience adviser and has earned the Twitter nickname @wegkaner way back in 2001.

CPD

This webinar and successful completion of the online assessment will secure 2 hours verifiable output TAX CPD points/units.

Event Pricing

Non-Member: R475

Company Price: R950

Please note the company price applies whenever more than one person will be watching a webinar concurrently from one connection, e.g. if a group is watching the webinar together in a boardroom.

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  • If the cancellation occurs less than 4 working days prior to the event a 100% cancellation fee will apply.
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