Live Breaking News & Updates on Denver Keswell|Page 1
Stay updated with breaking news from Denver keswell. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Retirement tax changes planned for South African expats Subscribe National Treasury has confirmed it is looking to make retirement and tax changes for people who emigrate from South Africa. The proposed changes relate to the cashing out of retirement savings when leaving the country, and when specific taxes are applied. As the tax laws currently stand, a retirement fund member who cashes out their retirement savings and emigrates from South Africa – and is thus no longer tax resident – is subject to tax in South Africa using the If the member defers accessing the funds until after they actually retire, they are only subject to retirement tax at that stage. ....
It ‘mirrors similar initiatives in US and a number of European territories’ The South African Revenue Service (Sars) has unveiled a high wealth individual taxpayer segment. This came during the finance minister Tito Mboweni’s budget speech on 24 February 2021. It will focus on wealthy taxpayers with complex financial arrangements. The unit will initially be co-located within the large business and international taxpayer segment. Sars said that it will be assessing wealth “derived from multiple sources” and these individuals “employ complex, and often offshore, financial arrangements”. The first group of taxpayers have been identified and will receive a letter during April. ....
National Treasury announced in the 2020 budget that the concept of financial emigration would be scrapped. This proposal is reflected in the Taxation Laws Amendment Bill 2020. The bill proposes that a new test make provision for the payment of a retirement fund lump sum benefit when a member ceases to be a South African tax resident. The concept of financial emigration is changing, which has implications for retirement fund members wanting to emigrate from South Africa - and possibly their savings, warns Denver Keswell, senior legal advisor at Nedgroup Investments. For the SA Reserve Bank s exchange control purposes, financial emigration means a person s tax status is changed from being an SA resident to a non-resident. National Treasury announced in the 2020 budget that the concept of financial emigration would be scrapped. This proposal is reflected in the Taxation Laws Amendment Bill 2020 (TLAB). ....