The concept of formal emigration or exchange control emigration, as recognized by the Financial Surveillance Department (Excon), is phased out as of 1 March 2021. This change impacts the early encashment of retirement annuities by non-residents. Practitioners are noticing a significant gap between Excon non-resident status and the tax concept of non-residency. SARS records a cessation of tax residency on the date the taxpayer leaves SA, disregarding the principles of being ordinarily resident and/or treaty tiebreakers. It can be argued that both SARB and SARS are acting outside their respective acts in ensuring compliance for residents and emigrants. Tax practitioners can ensure legally compliant workaround options and roadmaps by thoroughly understanding both SARB and SARS regulations, keeping abreast of legislative changes, and providing clients with strategic advice that aligns with current laws. Collaboration with legal experts in tax law and international tax treaties also helps create robust compliance strategies.
After attending this video, participants are able to:
2020 Webinar: Offshore tax planning options for a SA tax resident - Webinar 1
Annual Cross-Border Considerations for Advisers: Global Families and Business Owners Pre-event 2021
Navigating Death and Taxes: A Focus on VAT, CGT, Estate Duty and Income Tax