Rushed formal emigration may result in unintended tax consequences
Phasing out the concept of formal emigration is not government’s attempt to stop people accessing their retirement savings
26 November 2020 - 15:15
It is unfortunate that the decision by the National Treasury to phase out the concept of formal emigration by March 1 2021, with the aim of further easing exchange controls, has been misrepresented by some as an attempt by the government to block people from accessing their retirement savings.
While the opposite is true, some South Africans are feeling pressured into applying for formal emigration before the end of the current tax year solely to access their retirement annuities (RAs) in full or preservation fund savings where one withdrawal has already been made...
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