Many South African high-income earners working abroad are considering financial emigration as the tax exemption on foreign employment income is going to be capped at R1m from March 2020. What it means Financial emigration is a formal emigration process which means your status with the South African Reserve Bank changes from resident to non-resident for exchange control and tax purposes. You will not lose your South African citizenship if you emigrate financially. So there is no need to give up your passport, and you can return to live in SA at any time. How much can you send offshore? Exchange control in SA has been significantly relaxed, and you can now transfer R11m annually by using your foreign capital allowance of R10m and single discretionary allowance of R1m. These allowances are available to taxpayers in good standing over 18 years of age. Retirement fund complexities If you have money invested in a preservation fund, you can make a withdrawal and transfer the funds offshore...
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