SOUTH AFRICANS EMIGRATING TO BE HIT HARD WITH EXIT TAX

When South Africans emigrate and cut their tax ties with SARS for good, they’re usually subject to an exit tax. This forms part of the emigration process.

Now, the Treasury has proposed that those who intend to emigrate to greener pastures and leave South Africa for good, should face a harsher exit tax.

Assets that are subject to exit tax as it currently stands include foreign fixed property, shares, unit trust and other similar investments, and trusts depending on how they are set up and what assets they hold.

If the powers that be get their way, South African fixed property held in the taxpayer’s name, retirement interests held in pension, provident and retirement annuity funds, cash, and personal use assets could also be included in the exit tax.

Tax Consulting SA told Business Tech that the draft Taxation Laws Amendment Bill now proposes, in addition to the existing exit charge, to tax the value of the interest in a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund.

Image credit: The South African